Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 22, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34177 | |
Entity Registrant Name | Discovery, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 35-2333914 | |
Entity Address, Address Line One | 8403 Colesville Road | |
Entity Address, City or Town | Silver Spring, | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20910 | |
City Area Code | 240 | |
Local Phone Number | 662-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001437107 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Series A Common Stock, par value $0.01 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Series A Common Stock | |
Trading Symbol | DISCA | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 160,019,717 | |
Series B Common Stock, par value $0.01 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Series B Common Stock | |
Trading Symbol | DISCB | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 6,512,378 | |
Series C Common Stock, par value $0.01 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Series C Common Stock | |
Trading Symbol | DISCK | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 340,161,506 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,453 | $ 1,552 |
Receivables, net | 2,564 | 2,633 |
Content rights and prepaid license fees, net | 89 | 579 |
Prepaid expenses and other current assets | 520 | 453 |
Total current assets | 4,626 | 5,217 |
Noncurrent content rights, net | 3,756 | 3,129 |
Property and equipment, net | 1,040 | 951 |
Goodwill | 12,966 | 13,050 |
Intangible assets, net | 8,332 | 8,667 |
Equity method investments | 542 | 568 |
Other noncurrent assets | 2,128 | 2,153 |
Total assets | 33,390 | 33,735 |
Current liabilities: | ||
Accounts payable | 421 | 463 |
Accrued liabilities | 1,471 | 1,678 |
Deferred revenues | 376 | 489 |
Current portion of debt | 607 | 609 |
Total current liabilities | 2,875 | 3,239 |
Noncurrent portion of debt | 15,267 | 14,810 |
Deferred income taxes | 1,550 | 1,691 |
Other noncurrent liabilities | 2,294 | 2,029 |
Total liabilities | 21,986 | 21,769 |
Commitments and contingencies (See Note 16) | ||
Redeemable noncontrolling interests | 442 | 442 |
Discovery, Inc. stockholders’ equity: | ||
Additional paid-in capital | 10,770 | 10,747 |
Treasury stock, at cost: 209 and 190 shares | (7,897) | (7,374) |
Retained earnings | 7,712 | 7,333 |
Accumulated other comprehensive loss | (1,122) | (822) |
Total Discovery, Inc. stockholders' equity | 9,470 | 9,891 |
Noncontrolling interests | 1,492 | 1,633 |
Total equity | 10,962 | 11,524 |
Total liabilities and equity | 33,390 | 33,735 |
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 |
Series B Common Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Common stock | 0 | 0 |
Series C Common Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Common stock | $ 5 | $ 5 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Treasury stock (in shares) | 209 | 190 |
Series A-1 Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 8 | 8 |
Preferred stock issued (in shares) | 8 | 8 |
Preferred stock outstanding (in shares) | 8 | 8 |
Series C-1 Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 6 | 6 |
Preferred stock issued (in shares) | 5 | 5 |
Preferred stock outstanding (in shares) | 5 | 5 |
Series A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 1,700 | 1,700 |
Common stock issued (in shares) | 163 | 161 |
Common stock outstanding (in shares) | 160 | 158 |
Series B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 100 | 100 |
Common stock issued (in shares) | 7 | 7 |
Common stock outstanding (in shares) | 7 | 7 |
Series C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 2,000 | 2,000 |
Common stock issued (in shares) | 546 | 547 |
Common stock outstanding (in shares) | 340 | 360 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Revenues | $ 2,683 | $ 2,707 |
Costs and expenses: | ||
Costs of revenues, excluding depreciation and amortization | 918 | 930 |
Selling, general and administrative | 645 | 626 |
Depreciation and amortization | 326 | 372 |
Restructuring and other charges | 15 | 5 |
Total costs and expenses | 1,904 | 1,933 |
Operating income | 779 | 774 |
Interest expense, net | (163) | (182) |
Loss on extinguishment of debt | 0 | (5) |
(Loss) income from equity investees, net | (21) | 11 |
Other expense, net | (58) | (27) |
Income before income taxes | 537 | 571 |
Income tax expense | (130) | (153) |
Net income | 407 | 418 |
Net income attributable to noncontrolling interests | (28) | (29) |
Net income attributable to redeemable noncontrolling interests | (2) | (5) |
Net income available to Discovery, Inc. | $ 377 | $ 384 |
Series A, B and C Common Stock | ||
Net income per share allocated to Discovery, Inc. Series A, B and C common stockholders: | ||
Basic (in dollars per share) | $ 0.55 | $ 0.53 |
Diluted (in dollars per share) | $ 0.55 | $ 0.53 |
Weighted average shares outstanding: | ||
Basic (in shares) | 517 | 524 |
Diluted (in shares) | 685 | 714 |
Advertising | ||
Revenues: | ||
Revenues | $ 1,402 | $ 1,415 |
Distribution | ||
Revenues: | ||
Revenues | 1,223 | 1,224 |
Other | ||
Revenues: | ||
Revenues | $ 58 | $ 68 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 407 | $ 418 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (141) | (69) |
Derivatives | (159) | (11) |
Comprehensive income | 107 | 338 |
Comprehensive income attributable to noncontrolling interests | (28) | (29) |
Comprehensive income attributable to redeemable noncontrolling interests | (2) | (5) |
Comprehensive income attributable to Discovery, Inc. | $ 77 | $ 304 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net income | $ 407 | $ 418 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Content rights amortization and impairment | 704 | 697 |
Depreciation and amortization | 326 | 372 |
Deferred income taxes | (75) | (43) |
Share-based compensation (benefit) expense | (4) | 30 |
Equity in losses of equity method investee companies, including cash distributions | 31 | 3 |
Unrealized loss from derivative instruments, net | 27 | 0 |
Remeasurement gain on previously held equity interest | 0 | (8) |
Realized gain from derivative instruments, net | (21) | 0 |
Other, net | 29 | 44 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Receivables, net | 36 | (10) |
Content rights and payables, net | (899) | (816) |
Accounts payable and accrued liabilities | (202) | (211) |
Foreign currency, prepaid expenses and other assets, net | (24) | 66 |
Cash provided by operating activities | 335 | 542 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | (22) |
Investments in and advances to equity investments | (42) | (34) |
Purchases of property and equipment | (105) | (44) |
Other investing activities, net | 77 | 6 |
Cash used in investing activities | (70) | (94) |
Financing Activities | ||
Principal repayments of debt, including discount payment | 0 | (453) |
Repurchases of stock | (527) | 0 |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (173) | (163) |
Borrowings under revolving credit facility | 500 | 0 |
Other financing activities, net | (59) | (36) |
Cash used in financing activities | (259) | (652) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (24) | (37) |
Net change in cash, cash equivalents, and restricted cash | (18) | (241) |
Cash, cash equivalents, and restricted cash, beginning of period | 1,552 | 986 |
Cash, cash equivalents, and restricted cash, end of period | $ 1,534 | $ 745 |
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 |
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 plans | (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 |
Beginning balance (in shares) at Dec. 31, 2019 | 13 | 715 | |||||||
Beginning balance at Dec. 31, 2019 | 11,524 | $ 0 | $ 7 | 10,747 | (7,374) | 7,333 | (822) | 9,891 | 1,633 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income available to Discovery, Inc. and attributable to noncontrolling interests | 405 | 377 | 377 | 28 | |||||
Other comprehensive loss | (300) | (300) | (300) | ||||||
Share-based compensation | 21 | 21 | 21 | ||||||
Repurchases of stock (in shares) | 0 | ||||||||
Repurchases of stock | (523) | (523) | (523) | ||||||
Tax settlements associated with share-based plans | (30) | (30) | (30) | ||||||
Dividends paid to noncontrolling interests | (170) | (170) | |||||||
Issuance of stock in connection with share-based plans (in shares) | 1 | ||||||||
Issuance of stock in connection with share-based plans | 32 | 32 | 32 | ||||||
Other adjustments to stockholders' equity | 1 | 1 | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 13 | 716 | |||||||
Ending balance at Mar. 31, 2020 | $ 10,962 | $ 0 | $ 7 | $ 10,770 | $ (7,897) | $ 7,712 | $ (1,122) | $ 9,470 | $ 1,492 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Discovery, Inc. (“Discovery”, the “Company”, "we", "us" or "our") is a global media company that provides content across multiple distribution platforms, including linear platforms such as pay-television ("pay-TV"), free-to-air ("FTA") and broadcast television, authenticated TV Everywhere ("TVE") applications, digital distribution arrangements, content licensing arrangements and direct-to-consumer ("DTC") subscription products. The Company also operates a production studio. The Company has organized its operations into two reportable segments: U.S. Networks, consisting principally of domestic television networks and digital content services, and International Networks, consisting primarily of international television networks and digital content services. 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, including variable interest entities ("VIE") for which the Company is the primary beneficiary. Inter-company accounts and transactions between consolidated entities have been eliminated. 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, 2019 (the “2019 Form 10-K”). Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, estimated credit losses, content rights, leases, depreciation and amortization, business combinations, share-based compensation, defined benefit plans, income taxes, other financial instruments, contingencies, and the determination of whether the Company should consolidate certain entities. Impact of COVID-19 On March 11, 2020, the World Health Organization declared the current novel coronavirus (“COVID-19”) outbreak to be a global pandemic. COVID-19 continues to spread throughout the world, and the duration and severity of its effects and economic disruption are currently unknown. In response to this declaration and the rapid spread of COVID-19, the United States and other countries throughout the world have imposed varying degrees of restrictions on social and commercial activity in an effort to slow the spread of the illness. These measures have begun to have a significant adverse impact upon many sectors of the economy, including the media industry. The Company is closely monitoring the impact of COVID-19 on all aspects of its business and geographies, including how it will impact its customers, employees, suppliers, vendors, distribution and advertising partners, production facilities, and various third parties. While the Company did not incur significant disruptions during the three months ended March 31, 2020, the Company has taken certain steps to mitigate the adverse impacts on and risks to the Company's business in light of the pandemic. The Company is unable to predict the full impact that COVID-19 will have on its financial position, operating results, and cash flows due to numerous uncertainties and the speed with which the COVID-19 situation is developing. The extent to which COVID-19 impacts the Company’s results will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of COVID-19 and the actions to contain the virus or treat its impact, among others. The Company’s consolidated financial statements presented herein reflect the latest estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. Actual results may differ significantly from these estimates and assumptions. The Company assessed goodwill, other intangibles, deferred tax assets, programming assets, and accounts receivable for recoverability based upon latest estimates and judgments with respect to expected future operating results, ultimate usage of content and latest expectations with respect to collectability. No asset impairments were recorded as of March 31, 2020, as the fair value of such assets exceeded their carrying value. However, due to significant uncertainty surrounding the situation, management’s judgment regarding this could change in the future. Finally, the effects of the pandemic may negatively impact the Company’s financial position, results of operations, and cash flows. However, the current level of uncertainty over the economic and operational impacts of COVID-19 means the related financial impact cannot be reasonably and fully estimated at this time. In response to the COVID-19 pandemic, during the first quarter of 2020, the Company pursued a number of cost savings initiatives that it believes will offset a portion of potential revenue losses and deferrals due to the impact of COVID-19, through the implementation of travel, marketing, production and other operating cost reductions. The Company also implemented remote work arrangements effective mid-March 2020 and to date, these arrangements have not materially affected our ability to maintain our business operations. Additionally, certain sporting events that the Company has rights to have been cancelled or postponed, thereby eliminating or deferring the related revenues and expenses. For example, on March 24, 2020, the International Olympic Committee and the Tokyo 2020 Organizing Committee agreed to postpone the Olympic Games to 2021. The Company expects that the postponement of the Olympic Games will shift Olympic-related revenues and defer significant expenses from fiscal year 2020 to fiscal year 2021. The Company generally relies on third-party production partners to produce its content, and these third-party production partners were forced to shut down during the first quarter of 2020 due to COVID-19. The Company continues to monitor customer and consumer demands by employing innovative production and programming strategies, including content filmed by our on-air talent and seeking viewer feedback on which content to air. We intend to continue to adapt our plans as needed to drive our business and meet our obligations during the COVID-19 situation. In addition, the Company has implemented several measures that the Company believes will preserve sufficient liquidity in the near term. As described further in Note 7, during March 2020, the Company drew down $500 million under its $2.5 billion revolving credit facility to increase its cash position and maximize flexibility in light of the current uncertainty surrounding the impact of COVID-19. The Company has upcoming corporate debt maturities in June 2020 of $600 million and in June 2021 of $640 million. Subsequent to the three months ended March 31, 2020, the Company entered into an amendment to its revolving credit facility (See Note 19.) Finally, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. As of March 31, 2020, the Company does not expect the CARES Act to have a material effect on its financial position and results of operations. The Company continues to monitor other relief measures taken by the U.S. and other governments around the world. Accounting and Reporting Pronouncements Adopted Content In March 2019, the Financial Standards Accounting Board ("FASB") issued Accounting Standards Update ("ASU") 2019-02, which generally 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. The Company adopted this ASU on January 1, 2020 and will apply the provisions prospectively. In connection with this adoption, the Company elected to treat all content rights and prepaid license fees as a noncurrent asset, with the exception of content acquired with an initial license period of 12 months or less and prepaid sports rights expected to air within 12 months. As of March 31, 2020 and December 31, 2019, $89 million and $579 million, respectively, of content rights and prepaid license fees were reflected as a current asset. The Company determined that most of its content is exploited as part of film groups. For such content assets, the unit of account for the impairment assessment is the respective film group. There was no material impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. (See Note 5.) 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. The Company adopted this ASU on January 1, 2020 and will apply the provisions prospectively to future goodwill impairment tests. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, 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 replaces the incurred loss methodology with a new, forward-looking “expected loss” model that considers the risk of loss over the asset’s contractual life, even if remote, historical experience, current conditions, and reasonable and supportable forecasts of future relevant events. The Company adopted this ASU on January 1, 2020 using a modified retrospective approach and recorded a noncash cumulative effect of adoption as an increase to retained earnings of $2 million to align our credit loss methodology with the new standard. (See Note 10.) Accounting and Reporting Pronouncements Not Yet Adopted LIBOR In March 2020, the FASB issued ASU 2020-04, which provides temporary optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions if certain criteria are met in order to ease the potential accounting and financial reporting burden associated with the expected market transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The ASU is effective as of March 12, 2020 through December 31, 2022. The Company is currently assessing the impact ASU 2020-04 will have on its consolidated financial statements and related disclosures, if elected. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Acquisitions UKTV - Lifestyle Business On June 11, 2019, the Company and BBC Studios (“BBC”) dissolved their 50/50 joint venture, UKTV, a British multi-channel broadcaster, with the Company taking full control of UKTV’s three lifestyle channels (the “Lifestyle Business”) and BBC taking full control of UKTV’s seven entertainment channels (the "Entertainment Business"). Prior to the transaction, the Company held a note receivable from UKTV of $118 million, which was included in equity method investments in the Company’s consolidated balance sheets. Concurrent with the transaction, the note was settled. To compensate Discovery for the note receivable and for the difference in fair value between the Lifestyle Business and the Entertainment Business retained by BBC, Discovery received cash of $88 million at closing and a note receivable from BBC of $130 million, payable in two equal installments in June 2020 and 2021. The Company used a market-based valuation model to determine the fair value of the previously held 50% equity method investment in the Lifestyle Business and recognized a gain of $5 million during the three months ended June 30, 2019 for the difference between the carrying value and the fair value of the of the previously held equity interest. The Company applied the acquisition method of accounting to the Lifestyle Business, whereby the excess of the fair value of the business over the fair value of identifiable net assets was allocated to goodwill. The goodwill reflects the workforce and synergies expected from broader exposure to the lifestyle entertainment sector in the U.K. The goodwill recorded as part of this acquisition is included in the International Networks reportable segment and is not amortizable for tax purposes. Intangible assets consist of electronic program guide slots and trademarks and have a weighted average useful life of 6 years. The preliminary opening balance sheet is subject to adjustment based on final assessment of the fair values of certain acquired assets, principally intangibles, and certain liabilities assumed. The Company used discounted cash flow ("DCF") analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation. As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments occur. The preliminary fair value of Lifestyle Business assets acquired and liabilities assumed, as well as a reconciliation to total assets received in dissolution of the UKTV joint venture, is presented in the table below (in millions). Cash $ 17 Content rights 18 Intangible assets 34 Goodwill 121 Accrued liabilities (12) Total assets acquired and liabilities assumed in Lifestyle Business 178 Note receivable from BBC 130 Cash received 88 Net assets received in dissolution of UKTV joint venture $ 396 A summary of total assets derecognized in connection with the dissolution of the UKTV joint venture is presented in the table below (in millions). Carrying value of UKTV equity method investment $ 278 Settlement of note receivable 118 Total assets derecognized in dissolution of UKTV joint venture $ 396 In connection with the above transaction, the Company contemporaneously entered into a ten-year content licensing arrangement with BBC in exchange for license fees over the term. Other Magnolia Discovery Ventures On July 19, 2019, the Company contributed its linear cable network focused on home improvement, DIY Network, to a new joint venture, Magnolia Discovery Ventures, LLC ("Magnolia"), with Chip and Joanna Gaines acting as Chief Creative Officers to the joint venture. The joint venture will replace and rebrand the DIY Network, include a TV Everywhere app and a subscription streaming service planned for a future date. Upon formation of Magnolia, Discovery received a 75% ownership interest in the joint venture. In exchange for providing services and exclusivity to the joint venture, the Gaines received a 25% ownership interest in the joint venture, a put right after 6.5 years at fair value, potential for an additional 5% incentive equity, and certain guaranteed payments. Discovery consolidated the joint venture under the voting interest consolidation model. Payments to the Gaines for rendering services in their capacity as the Chief Creative Officers of the joint venture will be accounted for as liability-classified share-based awards to non-employees as services are rendered. Golf Digest On May 13, 2019, the Company paid $36 million in cash to acquire Golf Digest, a leading golf brand whose content is available across multiple platforms, including print and social media. The Company applied the acquisition method of accounting to Golf Digest, 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 $36 million, subject to adjustment based on the final assessment of the fair values of the assets acquired and liabilities assumed, including net working capital liabilities of $12 million, intangible assets of $25 million and goodwill of $23 million. Intangible assets consist of trademarks and trade names and licensing agreements and have a weighted average useful life of 9 years. The goodwill reflects the workforce and synergies expected from broader exposure to the golf 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. Play Sports Group Limited On January 8, 2019, the Company acquired a controlling interest in Play Sports Group Limited, increasing Discovery's ownership stake from 20.1% to 70.7%. The Company recognized a gain of $8 million during the three months ended March 31, 2019, 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. The measurement period closed in January 2020, with no material adjustments recorded. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | INVESTMENTS The Company’s equity investments consisted of the following (in millions). Category Balance Sheet Location Ownership March 31, 2020 December 31, 2019 Equity method investments: nC+ Equity method investments 32% $ 170 $ 182 Discovery Solar Ventures, LLC (a) Equity method investments N/A 89 92 All3Media Equity method investments 50% 59 75 Other Equity method investments 224 219 Total equity method investments 542 568 Common stock investments with readily determinable fair values Other noncurrent assets 29 51 Equity investments without readily determinable fair values: Group Nine Media (b) Other noncurrent assets 25% 256 256 Formula E (c) Other noncurrent assets 25% 65 65 Other Other noncurrent assets 199 193 Total equity investments without readily determinable fair values 520 514 Total investments $ 1,091 $ 1,133 (a) Discovery Solar Ventures, LLC invests in limited liability companies that sponsor renewable energy projects related to solar energy. These investments are considered variable interest entities ("VIEs") of the Company and are accounted for under the equity method of accounting using the Hypothetical Liquidation at Book Value ("HLBV") methodology for allocating earnings. (b) Overall ownership percentage for Group Nine Media is calculated on an outstanding shares basis. (c) Ownership percentage for Formula E includes holdings accounted for as an equity method investment and holdings accounted for as an equity investment without a readily determinable fair value. Equity Method Investments Investments in equity method investees are those for which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary. There were no impairment losses recorded during the three months ended March 31, 2020 and 2019. With the exception of nC+, the carrying values of the Company’s equity method investments are consistent with its ownership in the underlying net assets of the investees. A portion of the purchase price associated with the investment nC+ was attributed to amortizable intangible assets, which is included in its carrying values. Earnings from nC+ were reduced by the amortization of these intangibles of $3 million and $2 million during the three months ended March 31, 2020 and 2019, respectively. Amortization that reduces the Company's equity in earnings of nC+ for future periods is expected to be $54 million. Certain of the Company's other equity method investments are VIEs, for which the Company is not the primary beneficiary. As of March 31, 2020, the Company’s maximum exposure for all its unconsolidated VIEs, including the investment carrying values and unfunded contractual commitments made on behalf of VIEs, was approximately $303 million. The Company's maximum estimated exposure excludes the non-contractual future funding of VIEs. The aggregate carrying values of these VIE investments were $160 million as of March 31, 2020 and December 31, 2019. The Company recognized its portion of VIE operating results with net losses of $9 million and net earnings $3 million for the three months ended March 31, 2020 and 2019, respectively, in (loss) income from equity investees, net on the consolidated statements of operations. Common Stock Investments with Readily Determinable Fair Value Investments in entities or other securities in which the Company has no control or significant influence, is not the primary beneficiary, and have a readily determinable fair value are classified as equity investments with readily determinable fair value. Gains and losses are recorded in other expense, net on the consolidated statements of operations. The Company owns shares of common stock of Lions Gate Entertainment Corp. ("Lionsgate"), an entertainment company. The gains and losses related to the Company's common stock investments with readily determinable fair values for the three months ended March 31, 2020 and 2019 are summarized in the table below (in millions). Three Months Ended March 31, 2020 2019 Net losses recognized during the period on equity securities $ (22) $ — Less: Net losses recognized on equity securities sold — — Unrealized losses recognized during reporting period on equity securities still held at the reporting date $ (22) $ — Formerly, 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 with changes in fair value reflected as a component of other expense, net on the consolidated statements of operations. (See Note 8.) During the three months ended March 31, 2020, tranches 2 and 3 of the Lionsgate Collar, which covered the remaining hedged shares, were terminated. The Company received cash of $44 million and recognized a gain of $7 million, which represents the difference between the carrying value and the fair value of the hedged shares, upon termination. The gain is included in other expense, net on the consolidated statements of operations. Equity investments without readily determinable fair values assessed under the measurement alternative Equity investments without readily determinable fair value include ownership rights that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence and these investments do not have readily determinable fair values. During the three months ended March 31, 2020, the Company invested $6 million in various equity investments without readily determinable fair values 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 the result of observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of March 31, 2020, the Company had recorded cumulative upward adjustments of $9 million for its equity investments without readily determinable fair values. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 153 $ — $ 153 Equity securities: Mutual funds Prepaid expenses and other current assets 12 — — 12 Company-owned life insurance contracts Prepaid expenses and other current assets — 3 — 3 Mutual funds Other noncurrent assets 163 — — 163 Company-owned life insurance contracts Other noncurrent assets — 42 — 42 Total $ 175 $ 198 $ — $ 373 Liabilities Deferred compensation plan Accrued liabilities $ 24 $ — $ — $ 24 Deferred compensation plan Other noncurrent liabilities 180 — — 180 Total $ 204 $ — $ — $ 204 December 31, 2019 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 10 $ — $ 10 Equity securities: Mutual funds Prepaid expenses and other current assets 11 — — 11 Company-owned life insurance contracts Prepaid expenses and other current assets — 4 — 4 Mutual funds Other noncurrent assets 192 — — 192 Company-owned life insurance contracts Other noncurrent assets — 45 — 45 Total $ 203 $ 59 $ — $ 262 Liabilities Deferred compensation plan Accrued liabilities $ 24 $ — $ — $ 24 Deferred compensation plan Other noncurrent liabilities 209 — — 209 Total $ 233 $ — $ — $ 233 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. 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. 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. Company-owned life insurance contracts are recorded at their cash surrender value, which approximates fair value (Level 2). In addition to the financial instruments listed in the tables above, the Company has other financial instruments, including cash deposits, accounts receivable, accounts payable, borrowings under the revolving credit facility, finance leases, and senior notes. The carrying values for such financial instruments, other than the senior notes, each approximated their fair values as of March 31, 2020 and December 31, 2019. The estimated fair value of the Company’s outstanding senior notes using quoted prices from over-the-counter markets, considered Level 2 inputs, was $15.7 billion and $17.1 billion as of March 31, 2020 and December 31, 2019, respectively. The Company's derivative financial instruments are discussed in Note 8. |
Content Rights
Content Rights | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Content Rights | CONTENT RIGHTS Content rights principally consist of television series, specials, films and sporting events. Content aired on the Company’s television networks and digital content offerings is sourced from a wide range of third-party producers, wholly-owned and equity method investee production studios, and sports associations. Content is classified either as produced, coproduced or licensed. The Company owns most or all of the rights to produced content. The Company collaborates with third parties to finance and develop coproduced content, and it retains significant rights to exploit the programs. Prepaid licensed content includes advance payments for rights to air sporting events that will take place in the future and advance payments for acquired films and television series. Costs of produced and coproduced content consist of development costs, acquired production costs, direct production costs, certain production overhead costs and participation costs. Costs incurred for produced and coproduced content are capitalized if the Company has previously generated revenues from similar content in established markets and offerings and the content will be used, and revenues will be generated for a period of at least one year. The Company’s coproduction arrangements generally provide for the sharing of production costs. The Company records its costs but does not record the costs borne by the other party as the Company does not share any associated economics of exploitation. Licensed content is comprised of films or series that have been previously produced by third parties and the Company retains limited airing rights over a contractual term. Program licenses typically have fixed terms and require payments during the term of the license. The cost of licensed content is capitalized when the cost is known or reasonably determinable, the license period for the programs has commenced, the program materials have been accepted by the Company in accordance with the license agreements, and the programs are available for the first showing. The Company pays in advance of delivery for television series, specials, films and sports rights. Payments made in advance of when the right to air the content is received are recognized as prepaid licensed content. Participation costs are expensed in line with the amortization of production costs. Content distribution, advertising, marketing, general and administrative costs are expensed as incurred. Linear content amortization expense for each period is recognized based on the revenue forecast model, which approximates the proportion that estimated distribution and advertising revenues for the current period represent in relation to the estimated remaining total lifetime revenues. Digital content amortization for each period is recognized based on estimated viewing patterns as there are no direct revenues to associate to the individual content assets and therefore, number of views is most representative of the use of the title. Significant judgement is required to determine the useful lives and amortization patterns of the Company’s content assets. Quarterly, the Company prepares analyses to support its content amortization expense. Critical assumptions used in determining content amortization include: (i) the grouping of content with similar characteristics, (ii) the application of a quantitative revenue forecast model or viewership model based on the adequacy of historical data, (iii) determining the appropriate historical periods to utilize and the relative weighting of those historical periods in the forecast model, (iv) assessing the accuracy of the Company's forecasts and (v) incorporating secondary streams. The Company then considers the appropriate application of the quantitative assessment given forecasted content use, expected content investment and market trends. Content use and future revenues may differ from estimates based on changes in expectations related to market acceptance, network affiliate fee rates, advertising demand, the number of cable and satellite television subscribers receiving the Company’s networks, the number of subscribers to our digital services, and program usage. Accordingly, the Company continually reviews its estimates and planned usage and revises its assumptions if necessary. As part of the Company's assessment of its amortization rates, the Company compares the calculated amortization rates to those that have been utilized during the year. If the calculated rates do not deviate materially from the applied amortization rates, no adjustment is recorded. Any material adjustments from the Company’s review of the amortization rates are applied prospectively in the period of the change for assets in film groups, which represent the largest proportion of the Company's content assets. The result of the content amortization analysis is either an accelerated method or a straight-line amortization method over the estimated useful lives of two to four years. Amortization of capitalized costs for produced and coproduced content begins when a program has been aired. Amortization of capitalized costs for licensed content generally commences when the license period begins and the program is available for use. The Company allocates the cost of multi-year sports programming arrangements over the contract period of each event or season based on the estimated relative value of each event or season. Amortization of sports rights takes place when the content airs. Capitalized content costs are stated at the lower of cost less accumulated amortization or fair value. Content assets (produced, coproduced and licensed) are predominantly monetized as a group on the Company’s linear networks and digital content offerings. For content assets that are predominantly monetized within film groups, the Company evaluates the fair value of content in aggregate at the group level by considering expected future revenue generation typically by using a discounted cash flow analysis when an event or change in circumstances indicates a change in the expected usefulness of the content or that the fair value may be less than unamortized costs. Estimates of future revenues consider historical airing patterns and future plans for airing content, including any changes in strategy. Given the significant estimates and judgments involved, actual demand or market conditions may be less favorable than those projected, requiring a write-down to fair value. Programming and development costs for programs that the Company has determined will not be produced, are fully expensed in the period the determination is made. The Company’s film groups are generally aligned along the Company’s networks and digital content offerings except for certain international territories wherein content assets are shared across the various networks in the territory and therefore, the territory is the film group. The Company’s rights to the Olympics are predominantly monetized on their own as the sublicensing of the rights in certain territories is a significant component of the monetization strategy. Beginning in 2020, all content rights and prepaid license fees are classified as a noncurrent asset, with the exception of content acquired with an initial license period of 12 months or less and prepaid sports rights expected to air within 12 months. (See Note 1.) The table below presents the components of content rights (in millions). March 31, 2020 December 31, 2019 Produced content rights: Completed $ 7,171 $ 6,976 In-production 715 582 Coproduced content rights: Completed 915 882 In-production 50 50 Licensed content rights: Acquired 1,100 1,101 Prepaid 390 249 Content rights, at cost 10,341 9,840 Accumulated amortization (6,496) (6,132) Total content rights, net 3,845 3,708 Current portion (a) (89) (579) Noncurrent portion $ 3,756 $ 3,129 (a) Effective with the adoption of ASU 2019-02 on January 1, 2020, the Company elected to classify all content rights and prepaid license fees as a noncurrent asset, with the exception of content acquired with an initial license period of 12 months or less and prepaid sports rights expected to air within 12 months. Content expense consisted of the following (in millions). Three Months Ended March 31, 2020 2019 Content amortization $ 703 $ 697 Other production charges 84 94 Content impairments 1 — Total content expense $ 788 $ 791 As of March 31, 2020, the Company expects to amortize approximately 56%, 27% and 13% of its produced and co-produced content, excluding content in-production, and 51%, 26% and 10% of its licensed content rights in the next three twelve-month operating cycles ended March 31, 2021, 2022 and 2023, respectively. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Goodwill The carrying value and changes in the carrying value of goodwill attributable to each reportable segment were as follows (in millions). U.S. International Total December 31, 2019 $ 10,813 $ 2,237 $ 13,050 Foreign currency translation — (84) (84) March 31, 2020 $ 10,813 $ 2,153 $ 12,966 The carrying amount of goodwill at the U.S. Networks segment included accumulated impairments of $20 million as of March 31, 2020 and December 31, 2019. The carrying amount of goodwill at the International Networks segment included accumulated impairments of $1.5 billion as of March 31, 2020 and December 31, 2019. Impairment Analysis |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The table below presents the components of outstanding debt (in millions). March 31, 2020 December 31, 2019 2.800% Senior notes, semi-annual interest, due June 2020 $ 600 $ 600 4.375% Senior notes, semi-annual interest, due June 2021 640 640 2.375% Senior notes, euro denominated, annual interest, due March 2022 330 336 3.300% Senior notes, semi-annual interest, due May 2022 496 496 3.500% Senior notes, semi-annual interest, due June 2022 400 400 2.950% Senior notes, semi-annual interest, due March 2023 1,167 1,167 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 496 525 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 662 673 3.950% Senior notes, semi-annual interest, due March 2028 1,700 1,700 4.125% Senior notes, semi-annual interest, due May 2029 750 750 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 5.300% Senior notes, semi-annual interest, due May 2049 750 750 Revolving credit facility 500 — Program financing line of credit, quarterly interest based on adjusted LIBOR or variable prime rate 7 10 Total debt 15,995 15,544 Unamortized discount, premium and debt issuance costs, net (a) (121) (125) Debt, net of unamortized discount, premium and debt issuance costs 15,874 15,419 Current portion of debt (607) (609) Noncurrent portion of debt $ 15,267 $ 14,810 (a) Current portion of unamortized discount, premium, and debt issuance costs, net is $1 million. Senior Notes In the second quarter of 2019, Discovery Communications, LLC (“DCL”), a wholly-owned subsidiary of the Company, issued aggregate principal amount of Senior Notes of $750 million due 2029 and $750 million due 2049. The proceeds received by DCL were net of a $6 million issuance discount and $12 million of debt issuance costs. DCL used the proceeds from the offering to redeem and repurchase approximately $1.3 billion aggregate principal amount of DCL's and Scripps Networks' Senior Notes. The redemptions and repurchase resulted in a loss on extinguishment of debt of $23 million for the year ended December 31, 2019. The loss included $20 million of net premiums to par value and $3 million of other non-cash charges. In the first quarter of 2019, the Company redeemed $411 million aggregate principal amount of senior notes due in 2019 and, during 2019, made open market bond repurchases of $55 million, resulting in a loss on extinguishment of debt of $5 million. As of March 31, 2020, all senior notes are fully and unconditionally guaranteed by the Company and Scripps Networks, except for the remaining $135 million of un-exchanged Scripps Networks Senior Notes acquired in conjunction with the acquisition of Scripps Networks. (See Note 20.) Revolving Credit Facility and Commercial Paper Programs DCL and certain designated foreign subsidiaries of DCL have the capacity to borrow up to $2.5 billion under a revolving credit facility (the "Credit Facility"), including a $100 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for Euro-denominated swing line loans. The Credit Facility matures in August 2022 with the option for up to two additional 364-day renewal periods and is subject to a maximum consolidated leverage ratio financial covenant of 4.50 to 1.00. As of March 31, 2020, DCL, was in compliance with all covenants and there were no events of default under the revolving credit facility. Subsequent to the three months ended March 31, 2020, the Company entered into an amendment to the Credit Facility. (See Note 19.) Additionally, the Company's commercial paper program is supported by the Credit Facility. Under the commercial paper program, the Company may issue up to $1.5 billion, including up to $500 million of euro-denominated borrowings. Borrowing capacity under the Credit Facility is reduced by any outstanding borrowings under the commercial paper program. As of March 31, 2020, the Company had $500 million of outstanding borrowings under the Credit Facility at a weighted average interest rate of 2.10% and had no outstanding borrowings under the commercial paper program. The Company had no outstanding borrowings under the Credit Facility or the commercial paper program as of December 31, 2019. All obligations of DCL and the other borrowers under the Credit Facility are unsecured and are fully and unconditionally guaranteed by Discovery and Scripps. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. During the three months ended March 31, 2020, the Company executed forward starting interest rate swap contracts designated as cash flow hedges with a total notional value of $1.6 billion. These contracts will mitigate interest rate risk associated with the forecasted issuance of future fixed-rate public debt. 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, 2020 and December 31, 2019. The fair value of the Company's derivative financial instruments at March 31, 2020 and December 31, 2019 was determined using a market-based approach (Level 2). March 31, 2020 December 31, 2019 Fair Value Fair Value Notional Prepaid expenses and other current assets Other non- Accrued liabilities Other non- Notional Prepaid expenses and other current assets Other non- Accrued liabilities Other non- Cash flow hedges: Foreign exchange $ 1,549 $ 36 $ 45 $ 3 $ 1 $ 1,631 $ 29 $ 7 $ 5 $ 16 Interest rate swaps 2,000 — — — 234 400 — 38 — — Net investment hedges: (a) Cross-currency swaps 3,439 38 142 — 58 3,535 37 70 7 94 Foreign exchange 52 — 10 — — 52 — 4 — — No hedging designation: Foreign exchange 983 4 — 1 109 1,177 — — 13 50 Cross-currency swaps 139 3 5 — — 279 3 — — 5 Equity (Lionsgate Collar) — — — — — 65 19 18 — — Total $ 81 $ 202 $ 4 $ 402 $ 88 $ 137 $ 25 $ 165 (a) Excludes £400 million of sterling notes ($496 million equivalent at March 31, 2020) designated as a net investment hedge. (See Note 7.) 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, 2020 2019 Gains (losses) recognized in accumulated other comprehensive loss: Foreign exchange - derivative adjustments $ 76 $ 3 Interest rate - derivative adjustments (272) (15) Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - advertising revenue 1 1 Foreign exchange - distribution revenue 8 4 Foreign exchange - costs of revenues 1 (2) If current fair valu es of designated cash flow hedges as of March 31, 2020 remained static over the next twelve months, the Company would reclassify $31 million of net deferred gains from accumulated other comprehensive loss into income in the next twelve months. The maximum length of time the Company is hedging exposure to the variability in future cash flows is 10 years. Net periodic interest settlements and accruals on the cross-currency swaps (whic h 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 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, 2020 and 2019. 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) 2020 2019 2020 2019 Cross currency swaps $ 137 $ 52 Interest expense, net $ 12 $ 7 Foreign exchange contracts 6 (1) Other expense, net — — Sterling notes (foreign denominated debt) 30 (17) N/A — — Total $ 173 $ 34 $ 12 $ 7 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, 2020 2019 Interest rate swaps $ — $ 1 Cross-currency swaps 10 (2) Equity 7 1 Foreign exchange derivatives (44) (34) Total in other expense, net $ (27) $ (34) |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | EQUITY Repurchase Programs In February 2020, the Company's Board of Directors authorized additional stock repurchases of up to $2 billion upon completion of its existing $1 billion repurchase authorization announced in May 2019. Under the stock repurchase 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. During the three months ended March 31, 2020, the Company repurchased 19.4 million shares of its Series C common stock for $523 million at an average price of $26.87 per share. There were no common stock repurchases for the three months ended March 31, 2019. 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. Over the life of the Company's repurchase programs and as of March 31, 2020, the Company had repurchased 3 million and 206 million shares of Series A and Series C common stock, respectively, for an aggregate purchase price of $171 million and $7.7 billion, respectively. 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, 2020 Three Months Ended March 31, 2019 Pretax Tax benefit (expense) Net-of-tax Pretax Tax benefit Net-of-tax Currency translation adjustments: Unrealized gains (losses): Foreign currency $ (309) $ 47 $ (262) $ (98) $ 2 $ (96) Net investment hedges 167 (46) 121 27 — 27 Total currency translation adjustments (142) 1 (141) (71) 2 (69) Derivative adjustments: Unrealized gains (losses) (196) 45 (151) (12) 4 (8) Reclassifications from other comprehensive income to net income (10) 2 (8) (3) — (3) Total derivative adjustments (206) 47 (159) (15) 4 (11) Other comprehensive income (loss) adjustments $ (348) $ 48 $ (300) $ (86) $ 6 $ (80) 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, 2020 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (847) $ 32 $ (7) $ (822) Other comprehensive income (loss) before reclassifications (141) (151) — (292) Reclassifications from accumulated other comprehensive loss to net income — (8) — (8) Other comprehensive income (loss) (141) (159) — (300) Ending balance $ (988) $ (127) $ (7) $ (1,122) Three Months Ended March 31, 2019 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (804) $ 16 $ 3 $ (785) Other comprehensive income (loss) 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) |
Revenues And Accounts Receivabl
Revenues And Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES AND ACCOUNTS RECEIVABLE 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, 2020 2019 U.S. Networks International Networks Other Total U.S. Networks International Networks Other Total Revenues: Advertising $ 1,026 $ 376 $ — $ 1,402 $ 1,022 $ 393 $ — $ 1,415 Distribution 708 515 — 1,223 697 527 — 1,224 Other 22 32 4 58 33 32 3 68 Total $ 1,756 $ 923 $ 4 $ 2,683 $ 1,752 $ 952 $ 3 $ 2,707 Accounts Receivable and Credit Losses Receivables include amounts currently due from customers and are presented net of an estimate for lifetime expected credit losses. Allowance for credit losses is measured using historical loss rates for the respective risk categories and incorporating forward-looking estimates. To assess collectability, the Company analyzes market trends, economic conditions, the aging of receivables and customer specific risks, and records a provision for estimated credit losses expected over the lifetime of receivables. The corresponding expense for the expected credit losses is reflected in selling, general and administrative expenses. The Company does not require collateral with respect to trade receivables. The Company’s accounts receivable balances and the related credit losses arise primarily from distribution and advertising revenue. The Company monitors ongoing credit exposure through active review of customers’ financial conditions, aging of receivable balances, historical collection trends, and expectations about relevant future events that may significantly affect collectability. Changes in allowance for credit losses consisted of the following (in millions): December 31, 2019 Impact of adoption of ASU 2016-13 Provisions for credit losses Write-offs March 31, 2020 Distribution customers $ 19 $ 1 $ — $ (2) $ 18 Advertising and other customers 35 (3) 5 (3) 34 Total $ 54 $ (2) $ 5 $ (5) $ 52 Contract Liability A contract liability, such as deferred revenue, is recorded when cash is received in advance of the Company's performance. Total deferred revenues, including both current and noncurrent, were $581 million and $597 million at March 31, 2020 and December 31, 2019, respectively. The change in deferred revenue for the three months ended March 31, 2020 primarily reflects $102 million of revenues recognized that were included in deferred revenues at December 31, 2019, partially offset by cash payments received during the period for which the performance obligation was not satisfied prior to the end of the period. Revenue recognized for the three months ended March 31, 2019 related to the deferred revenue balance at December 31, 2018 was $99 million. Long term deferred revenues is a component of other noncurrent liabilities on the consolidated balance sheets. Transaction Price Allocated to Remaining Performance Obligations Most of the Company's distribution contracts are licenses of functional intellectual property where revenue is derived from royalty-based arrangements, for which the guidance allows the application of a practical expedient to record revenues as a function of royalties earned to date instead of estimating incremental royalty contract revenue. Accordingly, in these instances revenue is recognized based upon the royalties earned to date. However, there are certain other distribution arrangements that are fixed price or contain minimum guarantees that extend beyond one year. The Company recognizes revenue for fixed fee distribution contracts on a monthly basis based on minimum monthly fees or by calculating one twelfth of annual license fees specified in its distribution contracts. The transaction price allocated to remaining performance obligations within these fixed price or minimum guarantee distribution revenue contracts was $1.5 billion as of March 31, 2020 and is expected to be recognized over the next 5 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 $744 million as of March 31, 2020 and is expected to be recognized over the next 5 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 $126 million as of March 31, 2020 and is expected to be recognized over the next 12 years. The value of unsatisfied performance obligations disclosed above does not include: (i) contracts involving variable consideration for which revenues are recognized in accordance with the usage-based royalty exception, and (ii) contracts with an original expected length of one year or less, such as advertising contracts. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION The Company has various incentive plans under which performance-based restricted stock units ("PRSUs"), service-based restricted stock units ("RSUs"), stock options, and stock appreciation rights ("SARs") have been issued. The table below presents the components of share-based compensation (benefit) expense (in millions), which is recorded in selling, general and administrative expense in the consolidated statements of operations. Three Months Ended March 31, 2020 2019 PRSUs $ (17) $ 10 RSUs 17 6 Stock options 9 9 SARs (13) 5 Total share-based compensation (benefit) expense $ (4) $ 30 Tax benefit recognized $ 2 $ 3 The Company recorded total liabilities for cash-settled and other liability-settled share-based compensation awards of $24 million and $93 million as of March 31, 2020 and December 31, 2019, respectively. The current portion of the liability for cash-settled and other liability-settled awards was $17 million and $47 million as of March 31, 2020 and December 31, 2019, respectively. The table below presents awards granted (in millions, except weighted-average grant price). Three Months Ended March 31, 2020 Awards Weighted-Average Grant Price Awards granted: PRSUs 0.5 $ 25.70 RSUs 4.2 $ 25.76 Stock options 1.3 $ 25.70 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, 2020 (in millions, except years). Unrecognized Compensation Cost Weighted-Average Amortization Period PRSUs $ 9 0.91 RSUs 271 3.19 Stock options 90 2.56 SARs 1 1.47 Total unrecognized compensation cost $ 371 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 U.S. federal statutory income tax provision $ 113 21 % $ 120 21 % State and local income taxes, net of federal tax benefit 14 3 % 20 4 % Effect of foreign operations 27 5 % 11 2 % Change in uncertain tax positions 4 — % 6 1 % Noncontrolling interest adjustment (10) (2) % (12) (2) % Deferred tax adjustment (23) (4) % — — % Other, net 5 1 % 8 1 % Income tax expense $ 130 24 % $ 153 27 % Income tax expense was $130 million and $153 million, and our effective tax rate was 24% and 27%, for the three months ended March 31, 2020 and March 31, 2019, respectively. The decrease in income tax expense for the three months ended March 31, 2020 was primarily attributable to a decrease in income and a deferred tax adjustment in the U.S. The decrease was partially offset by the effect of foreign operations, which included taxation and allocation of income and losses among multiple foreign jurisdictions and establishment of a valuation allowance for certain deferred tax assets. 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 2015 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, 2020 and December 31, 2019 totaled $380 million and $375 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 $129 million within the next twelve months as a result of ongoing audits, lapses of statutes of limitations or regulatory developments. As of March 31, 2020 and December 31, 2019, the Company had accrued approximately $63 million and $58 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The table below sets forth the Company's calculated earnings per share. Earnings per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2020 2019 Numerator: Net income $ 407 $ 418 Less: Allocation of undistributed income to Series A-1 convertible preferred stock (39) (38) Net income attributable to noncontrolling interests (28) (29) Net income attributable to redeemable noncontrolling interests (2) (5) Redeemable noncontrolling interest adjustments to redemption value — (5) Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 338 $ 341 Allocation of net income to: Series A, B and C common stockholders $ 286 $ 279 Series C-1 convertible preferred stockholders 52 62 Total 338 341 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders 39 38 Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 377 $ 379 Denominator — weighted average: Series A, B and C common shares outstanding — basic 517 524 Impact of assumed preferred stock conversion 165 187 Dilutive effect of share-based awards 3 3 Series A, B and C common shares outstanding — diluted 685 714 Series C-1 convertible preferred stock outstanding — basic and diluted 5 6 Basic net income per share allocated to: Series A, B and C common stockholders $ 0.55 $ 0.53 Series C-1 convertible preferred stockholders $ 10.71 $ 10.31 Diluted net income per share allocated to: Series A, B and C common stockholders $ 0.55 $ 0.53 Series C-1 convertible preferred stockholders $ 10.65 $ 10.27 The table below presents the details of share-based awards that were excluded from the calculation of diluted earnings per share (in millions). Three Months Ended March 31, 2020 2019 Anti-dilutive share-based awards 22 21 PRSUs whose performance targets have not been achieved — 1 Only outstanding PRSUs whose performance targets have been achieved as of the last day of the most recent period are included in the dilutive effect calculation. |
Supplemental Disclosures
Supplemental Disclosures | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Disclosures | SUPPLEMENTAL DISCLOSURES The following tables present supplemental information related to the consolidated financial statements (in millions). Supplemental Cash Flow Information Three Months Ended March 31, 2020 2019 Cash paid for taxes, net $ 108 $ 34 Cash paid for interest, net 174 197 Non-cash investing and financing activities: Accrued purchases of property and equipment 59 26 Assets acquired under finance lease and other arrangements 58 2 Cash, Cash Equivalents, and Restricted Cash March 31, 2020 December 31, 2019 Cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 1,453 $ 1,552 Restricted cash - other current assets (a) 81 — Total cash, cash equivalents, and restricted cash $ 1,534 $ 1,552 (a) Restricted cash includes cash posted as collateral related to forward starting interest rate swap contracts that were executed during 2019 and the three months ended March 31, 2020. (See Note 8.) |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSIn 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 30% 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, or minority partners of consolidated subsidiaries. The table below presents a summary of the transactions with related parties (in millions). Three Months Ended March 31, 2020 2019 Revenues and service charges: Liberty Group $ 152 $ 168 Equity method investees 63 74 Other 22 14 Total revenues and service charges $ 237 $ 256 Interest income $ — $ 1 Expenses $ (53) $ (196) The table below presents receivables due from related parties (in millions). March 31, 2020 December 31, 2019 Receivables $ 160 $ 156 Payables $ 9 $ 18 |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
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, and future funding commitments to equity method investees. Contingencies Put Rights The Company has granted put rights to certain consolidated subsidiaries, which may be exercised beginning in 2021. 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 three months ended March 31, 2019, a withholding tax claim recorded as part of the provisional Scripps Networks purchase accounting 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 $29 million. Guarantees There were no guarantees recorded under ASC 460 as of March 31, 2020 and December 31, 2019. 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, 2020 and December 31, 2019. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segments | REPORTABLE SEGMENTSThe 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 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) employee 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 other transactions, and (viii) other items impacting comparability, such as the non-cash settlement of a withholding tax claim. (See Note 16.) 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 acquisition 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 and inter-segment eliminations related to production studios 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 U.S. GAAP. 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, 2020 2019 U.S. Networks $ 1,756 $ 1,752 International Networks 923 952 Other 4 3 Total revenues $ 2,683 $ 2,707 Adjusted OIBDA Three Months Ended March 31, 2020 2019 U.S. Networks $ 1,016 $ 1,061 International Networks 207 219 Other 2 1 Corporate and inter-segment eliminations (112) (122) Total Adjusted OIBDA $ 1,113 $ 1,159 Reconciliation of Net Income available to Discovery, Inc. to Total Adjusted OIBDA Three Months Ended March 31, 2020 2019 Net income available to Discovery, Inc. $ 377 $ 384 Net income attributable to redeemable noncontrolling interests 2 5 Net income attributable to noncontrolling interests 28 29 Income tax expense 130 153 Income before income taxes 537 571 Other expense, net 58 27 Loss (income) from equity investees, net 21 (11) Loss on extinguishment of debt — 5 Interest expense, net 163 182 Operating income 779 774 Restructuring and other charges 15 5 Depreciation and amortization 326 372 Employee share-based compensation (7) 30 Transaction and integration costs — 7 Settlement of a withholding tax claim — (29) Total Adjusted OIBDA $ 1,113 $ 1,159 Total Assets March 31, 2020 December 31, 2019 U.S. Networks $ 17,933 $ 18,156 International Networks 7,838 8,145 Other 179 204 Corporate and inter-segment eliminations 7,440 7,230 Total assets $ 33,390 $ 33,735 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, 2020 | |
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, 2020 2019 U.S. Networks $ 12 $ 4 International Networks 1 4 Corporate and inter-segment eliminations 2 (3) Total restructuring and other charges $ 15 $ 5 Restructuring charges for the three months ended March 31, 2020 and 2019 primarily include employee termination costs. Changes in restructuring and other liabilities recorded in accrued liabilities by major category were as follows (in millions). U.S. Networks International Networks Corporate and inter-segment eliminations Total December 31, 2019 $ 4 $ 5 $ 9 $ 18 Employee termination accruals, net 12 1 1 14 Other accruals — — 1 1 Cash paid (14) (4) (2) (20) March 31, 2020 $ 2 $ 2 $ 9 $ 13 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Amendment to Revolving Credit Facility To preserve flexibility in the current environment, the Company amended certain provisions of the its revolving credit facility subsequent to March 31, 2020. On April 30, 2020, DCL, as borrower, certain wholly owned subsidiaries of DCL party thereto as designated borrowers, Discovery, as guarantor, the lenders party thereto and Bank of America, N.A., as administrative agent (in its capacity as administrative agent, the “Administrative Agent”), entered into Amendment No. 2 to the Amended and Restated Credit Agreement (“Amendment No. 2”), which amended the Amended and Restated Credit Agreement, dated February 4, 2016, which was previously amended by Amendment No. 1 to the Amended and Restated Credit Agreement, dated August 11, 2017, (collectively, the “Existing Credit Agreement”). Amendment No. 2 modifies certain terms of the Existing Credit Agreement, including the following: The financial covenants were modified to reset the Maximum Consolidated Leverage Ratio as set forth below: Measurement Period Ending Maximum Consolidated Leverage Ratio March 31, 2020 and June 30, 2020 5.00:1.00 September 30, 2020 through March 31, 2021 5.50:1.00 June 30, 2021 5.00:1.00 September 30, 2021 and thereafter 4.50:1.00 In addition, the restricted payments covenant was modified to add a limitation on restricted payments made in cash unless after giving pro forma effect thereto the consolidated leverage ratio is less than or equal to 4.50:1.00. Finally, the minimum LIBOR rate and the minimum base rate was each increased from 0% to 0.50% per annum. In connection with the execution of Amendment No. 2, DCL paid customary arranger and lender consent fees and fees and expenses of Bank of America, N.A., in its capacity as administrative agent as well as other third party fees. The Company is currently evaluating the accounting implications of lender and other third party fees related to Amendment No. 2 on its consolidated financial position, cash flows and results of operations. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Overview As of March 31, 2020 and December 31, 2019, 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 7.) Each of the Company, DCL and/or Discovery Communications Holding LLC (“DCH”) (collectively the “Issuers”) has 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, non-Scripps 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. The Company and Scripps Networks fully and unconditionally guarantee all of Discovery's senior notes on an unsecured basis, except for the $135 million un-exchanged Scripps Networks Senior Notes. (See Note 7.) 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, 2020 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 12 $ — $ 1,028 $ 109 $ 304 $ — $ 1,453 Receivables, net — — — 479 1,309 776 — 2,564 Content rights and prepaid license fees, net — — — — 89 — — 89 Prepaid expenses and other current assets 2 11 14 151 222 120 — 520 Inter-company trade receivables, net — 33 — 295 — — (328) — Total current assets 2 56 14 1,953 1,729 1,200 (328) 4,626 Investment in and advances to subsidiaries 9,529 12,379 — 6,807 — — (28,715) — Noncurrent content rights, net — — — 800 1,948 1,008 — 3,756 Goodwill — — — 3,678 3,160 6,128 — 12,966 Intangible assets, net — — — 230 1,051 7,051 — 8,332 Equity method investments — — — 16 301 225 — 542 Other noncurrent assets, including property and equipment, net — 48 20 1,238 1,371 511 (20) 3,168 Total assets $ 9,531 $ 12,483 $ 34 $ 14,722 $ 9,560 $ 16,123 $ (29,063) $ 33,390 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 58 $ — $ 542 $ 7 $ — $ — $ 607 Other current liabilities 59 9 — 467 1,250 483 — 2,268 Inter-company trade payables, net — — — — 295 33 (328) — Total current liabilities 59 67 — 1,009 1,552 516 (328) 2,875 Noncurrent portion of debt — 77 — 15,190 — — — 15,267 Negative carrying amount in subsidiaries, net — — 2,921 — — 1,925 (4,846) — Other noncurrent liabilities 2 64 — 1,444 758 1,576 3,844 Total liabilities 61 208 2,921 17,643 2,310 4,017 (5,174) 21,986 Redeemable noncontrolling interests — — — — 442 — — 442 Total Discovery, Inc. stockholders' equity 9,470 12,275 (2,887) (2,921) 6,808 12,106 (25,381) 9,470 Noncontrolling interests — — — — — — 1,492 1,492 Total equity 9,470 12,275 (2,887) (2,921) 6,808 12,106 (23,889) 10,962 Total liabilities and equity $ 9,531 $ 12,483 $ 34 $ 14,722 $ 9,560 $ 16,123 $ (29,063) $ 33,390 Condensed Consolidating Balance Sheet December 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 60 $ — $ 801 $ 396 $ 295 $ — $ 1,552 Receivables, net — — — 456 1,372 805 — 2,633 Content rights, net — — — 3 539 37 — 579 Prepaid expenses and other current assets 3 4 20 72 212 142 — 453 Inter-company trade receivables, net — 34 — 324 — — (358) — Total current assets 3 98 20 1,656 2,519 1,279 (358) 5,217 Investment in and advances to subsidiaries 9,891 12,548 — 6,811 — — (29,250) — Noncurrent content rights, net — — — 760 1,357 1,012 — 3,129 Goodwill — — — 3,678 3,183 6,189 — 13,050 Intangible assets, net — — — 230 1,117 7,320 — 8,667 Equity method investments — — — 14 317 237 — 568 Other noncurrent assets, including property and equipment, net — 51 21 1,133 1,372 547 (20) 3,104 Total assets $ 9,894 $ 12,697 $ 41 $ 14,282 $ 9,865 $ 16,584 $ (29,628) $ 33,735 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 58 $ — $ 541 $ 10 $ — $ — $ 609 Other current liabilities — 7 — 547 1,482 594 — 2,630 Inter-company trade payables, net — — — — 324 34 (358) — Total current liabilities — 65 — 1,088 1,816 628 (358) 3,239 Noncurrent portion of debt — 77 — 14,733 — — — 14,810 Negative carrying amount in subsidiaries, net — — 2,739 — — 1,799 (4,538) — Other noncurrent liabilities 3 69 — 1,200 795 1,674 (21) 3,720 Total liabilities 3 211 2,739 17,021 2,611 4,101 (4,917) 21,769 Redeemable noncontrolling interests — — — — 442 — — 442 Total Discovery, Inc. stockholders’ equity (deficit) 9,891 12,486 (2,698) (2,739) 6,812 12,483 (26,344) 9,891 Noncontrolling interests — — — — — — 1,633 1,633 Total equity (deficit) 9,891 12,486 (2,698) (2,739) 6,812 12,483 (24,711) 11,524 Total liabilities and equity $ 9,894 $ 12,697 $ 41 $ 14,282 $ 9,865 $ 16,584 $ (29,628) $ 33,735 Condensed Consolidating Statement of Operations Three Months Ended March 31, 2020 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 533 $ 1,261 $ 898 $ (9) $ 2,683 Costs of revenues, excluding depreciation and amortization — — — 106 566 251 (5) 918 Selling, general and administrative 8 1 — 62 457 122 (5) 645 Depreciation and amortization — — — 12 81 233 — 326 Restructuring and other charges — — — 3 3 9 — 15 Total costs and expenses 8 1 — 183 1,107 615 (10) 1,904 Operating (loss) income (8) (1) — 350 154 283 1 779 Equity in earnings of subsidiaries 383 276 173 38 — 116 (986) — Interest expense, net — (1) — (151) (11) — — (163) Income (loss) from equity investees, net — — — 2 (29) 6 — (21) Other expense, net — (2) — (16) (36) (4) — (58) Income before income taxes 375 272 173 223 78 401 (985) 537 Income tax benefit (expense) 2 1 — (48) (41) (44) — (130) Net income 377 273 173 175 37 357 (985) 407 Net income attributable to noncontrolling interests — — — — — — (28) (28) Net income attributable to redeemable noncontrolling interests — — — — — — (2) (2) Net income available to Discovery, Inc. $ 377 $ 273 $ 173 $ 175 $ 37 $ 357 $ (1,015) $ 377 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 Comprehensive Income (Loss) Three Months Ended March 31, 2020 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 377 $ 273 $ 173 $ 175 $ 37 $ 357 $ (985) $ 407 Other comprehensive (loss) income adjustments, net of tax: Currency translation (141) (160) 19 19 (4) (147) 273 (141) Derivatives (159) — (159) (159) (159) (106) 583 (159) Comprehensive income (loss) 77 113 33 35 (126) 104 (129) 107 Comprehensive income attributable to noncontrolling interests — — — — — — (28) (28) Comprehensive income attributable to redeemable noncontrolling interests — — — — — — (2) (2) Comprehensive income (loss) attributable to Discovery, Inc. $ 77 $ 113 $ 33 $ 35 $ (126) $ 104 $ (159) $ 77 Condensed Consolidating Statement of Comprehensive Income 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 Cash Flows Three Months Ended March 31, 2020 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash provided by (used in) operating activities $ 54 $ (6) $ 6 $ (39) $ (12) $ 332 $ — $ 335 Investing Activities Investments in and advances to equity investments — — — (2) (39) (1) — (42) Purchases of property and equipment — — — (44) (52) (9) — (105) Inter-company distributions and other investing activities, net — — — 8 69 — — 77 Cash provided by (used in) investing activities — — — (38) (22) (10) — (70) Financing Activities Borrowings under revolving credit facility — — — 500 — — — 500 Repurchases of stock (527) — — — — — — (527) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — — (2) (171) — (173) Inter-company contributions (distributions) and other financing activities, net 473 (42) (6) (115) (227) (142) — (59) Cash used in (provided by) financing activities (54) (42) (6) 385 (229) (313) — (259) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — — (24) — — (24) Net change in cash, cash equivalents, and restricted cash — (48) — 308 (287) 9 — (18) Cash, cash equivalents, and restricted cash, beginning of period — 60 — 801 396 295 — 1,552 Cash, cash equivalents, and restricted cash, end of period $ — $ 12 $ — $ 1,109 $ 109 $ 304 $ — $ 1,534 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) Purchases of property and equipment — — — (3) (33) (8) — (44) Inter-company distributions and other investing activities, net — — — 20 5 1 (20) 6 Cash provided by (used in) investing activities — — — 17 (84) (7) (20) (94) Financing Activities Principal repayments of debt, including discount payment — — — (453) — — — (453) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — — (10) (153) — (163) Inter-company (distributions) contributions and other financing activities, net (15) (78) (10) 517 (30) (440) 20 (36) 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 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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, including variable interest entities ("VIE") for which the Company is the primary beneficiary. Inter-company accounts and transactions between consolidated entities have been eliminated. |
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, 2019 (the “2019 Form 10-K”). |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, estimated credit losses, content rights, leases, depreciation and amortization, business combinations, share-based compensation, defined benefit plans, income taxes, other financial instruments, contingencies, and the determination of whether the Company should consolidate certain entities. Impact of COVID-19 On March 11, 2020, the World Health Organization declared the current novel coronavirus (“COVID-19”) outbreak to be a global pandemic. COVID-19 continues to spread throughout the world, and the duration and severity of its effects and economic disruption are currently unknown. In response to this declaration and the rapid spread of COVID-19, the United States and other countries throughout the world have imposed varying degrees of restrictions on social and commercial activity in an effort to slow the spread of the illness. These measures have begun to have a significant adverse impact upon many sectors of the economy, including the media industry. The Company is closely monitoring the impact of COVID-19 on all aspects of its business and geographies, including how it will impact its customers, employees, suppliers, vendors, distribution and advertising partners, production facilities, and various third parties. While the Company did not incur significant disruptions during the three months ended March 31, 2020, the Company has taken certain steps to mitigate the adverse impacts on and risks to the Company's business in light of the pandemic. The Company is unable to predict the full impact that COVID-19 will have on its financial position, operating results, and cash flows due to numerous uncertainties and the speed with which the COVID-19 situation is developing. The extent to which COVID-19 impacts the Company’s results will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of COVID-19 and the actions to contain the virus or treat its impact, among others. The Company’s consolidated financial statements presented herein reflect the latest estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. Actual results may differ significantly from these estimates and assumptions. The Company assessed goodwill, other intangibles, deferred tax assets, programming assets, and accounts receivable for recoverability based upon latest estimates and judgments with respect to expected future operating results, ultimate usage of content and latest expectations with respect to collectability. No asset impairments were recorded as of March 31, 2020, as the fair value of such assets exceeded their carrying value. However, due to significant uncertainty surrounding the situation, management’s judgment regarding this could change in the future. Finally, the effects of the pandemic may negatively impact the Company’s financial position, results of operations, and cash flows. However, the current level of uncertainty over the economic and operational impacts of COVID-19 means the related financial impact cannot be reasonably and fully estimated at this time. In response to the COVID-19 pandemic, during the first quarter of 2020, the Company pursued a number of cost savings initiatives that it believes will offset a portion of potential revenue losses and deferrals due to the impact of COVID-19, through the implementation of travel, marketing, production and other operating cost reductions. The Company also implemented remote work arrangements effective mid-March 2020 and to date, these arrangements have not materially affected our ability to maintain our business operations. Additionally, certain sporting events that the Company has rights to have been cancelled or postponed, thereby eliminating or deferring the related revenues and expenses. For example, on March 24, 2020, the International Olympic Committee and the Tokyo 2020 Organizing Committee agreed to postpone the Olympic Games to 2021. The Company expects that the postponement of the Olympic Games will shift Olympic-related revenues and defer significant expenses from fiscal year 2020 to fiscal year 2021. The Company generally relies on third-party production partners to produce its content, and these third-party production partners were forced to shut down during the first quarter of 2020 due to COVID-19. The Company continues to monitor customer and consumer demands by employing innovative production and programming strategies, including content filmed by our on-air talent and seeking viewer feedback on which content to air. We intend to continue to adapt our plans as needed to drive our business and meet our obligations during the COVID-19 situation. In addition, the Company has implemented several measures that the Company believes will preserve sufficient liquidity in the near term. As described further in Note 7, during March 2020, the Company drew down $500 million under its $2.5 billion revolving credit facility to increase its cash position and maximize flexibility in light of the current uncertainty surrounding the impact of COVID-19. The Company has upcoming corporate debt maturities in June 2020 of $600 million and in June 2021 of $640 million. Subsequent to the three months ended March 31, 2020, the Company entered into an amendment to its revolving credit facility (See Note 19.) Finally, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. As of March 31, 2020, the Company does not expect the CARES Act to have a material effect on its financial position and results of operations. The Company continues to monitor other relief measures taken by the U.S. and other governments around the world. |
Accounting and Reporting Pronouncements Adopted and Not Yet Adopted | Accounting and Reporting Pronouncements Adopted Content In March 2019, the Financial Standards Accounting Board ("FASB") issued Accounting Standards Update ("ASU") 2019-02, which generally 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. The Company adopted this ASU on January 1, 2020 and will apply the provisions prospectively. In connection with this adoption, the Company elected to treat all content rights and prepaid license fees as a noncurrent asset, with the exception of content acquired with an initial license period of 12 months or less and prepaid sports rights expected to air within 12 months. As of March 31, 2020 and December 31, 2019, $89 million and $579 million, respectively, of content rights and prepaid license fees were reflected as a current asset. The Company determined that most of its content is exploited as part of film groups. For such content assets, the unit of account for the impairment assessment is the respective film group. There was no material impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. (See Note 5.) 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. The Company adopted this ASU on January 1, 2020 and will apply the provisions prospectively to future goodwill impairment tests. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, 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 replaces the incurred loss methodology with a new, forward-looking “expected loss” model that considers the risk of loss over the asset’s contractual life, even if remote, historical experience, current conditions, and reasonable and supportable forecasts of future relevant events. The Company adopted this ASU on January 1, 2020 using a modified retrospective approach and recorded a noncash cumulative effect of adoption as an increase to retained earnings of $2 million to align our credit loss methodology with the new standard. (See Note 10.) Accounting and Reporting Pronouncements Not Yet Adopted LIBOR In March 2020, the FASB issued ASU 2020-04, which provides temporary optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions if certain criteria are met in order to ease the potential accounting and financial reporting burden associated with the expected market transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The ASU is effective as of March 12, 2020 through December 31, 2022. The Company is currently assessing the impact ASU 2020-04 will have on its consolidated financial statements and related disclosures, if elected. |
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. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. |
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. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary fair value of Lifestyle Business assets acquired and liabilities assumed, as well as a reconciliation to total assets received in dissolution of the UKTV joint venture, is presented in the table below (in millions). Cash $ 17 Content rights 18 Intangible assets 34 Goodwill 121 Accrued liabilities (12) Total assets acquired and liabilities assumed in Lifestyle Business 178 Note receivable from BBC 130 Cash received 88 Net assets received in dissolution of UKTV joint venture $ 396 |
Schedule Of Assets Derecognized | A summary of total assets derecognized in connection with the dissolution of the UKTV joint venture is presented in the table below (in millions). Carrying value of UKTV equity method investment $ 278 Settlement of note receivable 118 Total assets derecognized in dissolution of UKTV joint venture $ 396 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Summary of Investment Holdings | The Company’s equity investments consisted of the following (in millions). Category Balance Sheet Location Ownership March 31, 2020 December 31, 2019 Equity method investments: nC+ Equity method investments 32% $ 170 $ 182 Discovery Solar Ventures, LLC (a) Equity method investments N/A 89 92 All3Media Equity method investments 50% 59 75 Other Equity method investments 224 219 Total equity method investments 542 568 Common stock investments with readily determinable fair values Other noncurrent assets 29 51 Equity investments without readily determinable fair values: Group Nine Media (b) Other noncurrent assets 25% 256 256 Formula E (c) Other noncurrent assets 25% 65 65 Other Other noncurrent assets 199 193 Total equity investments without readily determinable fair values 520 514 Total investments $ 1,091 $ 1,133 (a) Discovery Solar Ventures, LLC invests in limited liability companies that sponsor renewable energy projects related to solar energy. These investments are considered variable interest entities ("VIEs") of the Company and are accounted for under the equity method of accounting using the Hypothetical Liquidation at Book Value ("HLBV") methodology for allocating earnings. (b) Overall ownership percentage for Group Nine Media is calculated on an outstanding shares basis. (c) Ownership percentage for Formula E includes holdings accounted for as an equity method investment and holdings accounted for as an equity investment without a readily determinable fair value. |
Schedule of Unrealized Gains and Losses Related To Common Stock Investments with Readily Determinable Fair Value | The gains and losses related to the Company's common stock investments with readily determinable fair values for the three months ended March 31, 2020 and 2019 are summarized in the table below (in millions). Three Months Ended March 31, 2020 2019 Net losses recognized during the period on equity securities $ (22) $ — Less: Net losses recognized on equity securities sold — — Unrealized losses recognized during reporting period on equity securities still held at the reporting date $ (22) $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 153 $ — $ 153 Equity securities: Mutual funds Prepaid expenses and other current assets 12 — — 12 Company-owned life insurance contracts Prepaid expenses and other current assets — 3 — 3 Mutual funds Other noncurrent assets 163 — — 163 Company-owned life insurance contracts Other noncurrent assets — 42 — 42 Total $ 175 $ 198 $ — $ 373 Liabilities Deferred compensation plan Accrued liabilities $ 24 $ — $ — $ 24 Deferred compensation plan Other noncurrent liabilities 180 — — 180 Total $ 204 $ — $ — $ 204 December 31, 2019 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 10 $ — $ 10 Equity securities: Mutual funds Prepaid expenses and other current assets 11 — — 11 Company-owned life insurance contracts Prepaid expenses and other current assets — 4 — 4 Mutual funds Other noncurrent assets 192 — — 192 Company-owned life insurance contracts Other noncurrent assets — 45 — 45 Total $ 203 $ 59 $ — $ 262 Liabilities Deferred compensation plan Accrued liabilities $ 24 $ — $ — $ 24 Deferred compensation plan Other noncurrent liabilities 209 — — 209 Total $ 233 $ — $ — $ 233 |
Content Rights (Tables)
Content Rights (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Content Rights | The table below presents the components of content rights (in millions). March 31, 2020 December 31, 2019 Produced content rights: Completed $ 7,171 $ 6,976 In-production 715 582 Coproduced content rights: Completed 915 882 In-production 50 50 Licensed content rights: Acquired 1,100 1,101 Prepaid 390 249 Content rights, at cost 10,341 9,840 Accumulated amortization (6,496) (6,132) Total content rights, net 3,845 3,708 Current portion (a) (89) (579) Noncurrent portion $ 3,756 $ 3,129 (a) Effective with the adoption of ASU 2019-02 on January 1, 2020, the Company elected to classify all content rights and prepaid license fees as a noncurrent asset, with the exception of content acquired with an initial license period of 12 months or less and prepaid sports rights expected to air within 12 months. |
Schedule Of Content Rights Expense | Content expense consisted of the following (in millions). Three Months Ended March 31, 2020 2019 Content amortization $ 703 $ 697 Other production charges 84 94 Content impairments 1 — Total content expense $ 788 $ 791 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying value and changes in the carrying value of goodwill attributable to each reportable segment were as follows (in millions). U.S. International Total December 31, 2019 $ 10,813 $ 2,237 $ 13,050 Foreign currency translation — (84) (84) March 31, 2020 $ 10,813 $ 2,153 $ 12,966 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The table below presents the components of outstanding debt (in millions). March 31, 2020 December 31, 2019 2.800% Senior notes, semi-annual interest, due June 2020 $ 600 $ 600 4.375% Senior notes, semi-annual interest, due June 2021 640 640 2.375% Senior notes, euro denominated, annual interest, due March 2022 330 336 3.300% Senior notes, semi-annual interest, due May 2022 496 496 3.500% Senior notes, semi-annual interest, due June 2022 400 400 2.950% Senior notes, semi-annual interest, due March 2023 1,167 1,167 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 496 525 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 662 673 3.950% Senior notes, semi-annual interest, due March 2028 1,700 1,700 4.125% Senior notes, semi-annual interest, due May 2029 750 750 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 5.300% Senior notes, semi-annual interest, due May 2049 750 750 Revolving credit facility 500 — Program financing line of credit, quarterly interest based on adjusted LIBOR or variable prime rate 7 10 Total debt 15,995 15,544 Unamortized discount, premium and debt issuance costs, net (a) (121) (125) Debt, net of unamortized discount, premium and debt issuance costs 15,874 15,419 Current portion of debt (607) (609) Noncurrent portion of debt $ 15,267 $ 14,810 (a) Current portion of unamortized discount, premium, and debt issuance costs, net is $1 million. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019. The fair value of the Company's derivative financial instruments at March 31, 2020 and December 31, 2019 was determined using a market-based approach (Level 2). March 31, 2020 December 31, 2019 Fair Value Fair Value Notional Prepaid expenses and other current assets Other non- Accrued liabilities Other non- Notional Prepaid expenses and other current assets Other non- Accrued liabilities Other non- Cash flow hedges: Foreign exchange $ 1,549 $ 36 $ 45 $ 3 $ 1 $ 1,631 $ 29 $ 7 $ 5 $ 16 Interest rate swaps 2,000 — — — 234 400 — 38 — — Net investment hedges: (a) Cross-currency swaps 3,439 38 142 — 58 3,535 37 70 7 94 Foreign exchange 52 — 10 — — 52 — 4 — — No hedging designation: Foreign exchange 983 4 — 1 109 1,177 — — 13 50 Cross-currency swaps 139 3 5 — — 279 3 — — 5 Equity (Lionsgate Collar) — — — — — 65 19 18 — — Total $ 81 $ 202 $ 4 $ 402 $ 88 $ 137 $ 25 $ 165 |
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, 2020 2019 Gains (losses) recognized in accumulated other comprehensive loss: Foreign exchange - derivative adjustments $ 76 $ 3 Interest rate - derivative adjustments (272) (15) Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - advertising revenue 1 1 Foreign exchange - distribution revenue 8 4 Foreign exchange - costs of revenues 1 (2) |
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, 2020 and 2019. 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) 2020 2019 2020 2019 Cross currency swaps $ 137 $ 52 Interest expense, net $ 12 $ 7 Foreign exchange contracts 6 (1) Other expense, net — — Sterling notes (foreign denominated debt) 30 (17) N/A — — Total $ 173 $ 34 $ 12 $ 7 |
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, 2020 2019 Interest rate swaps $ — $ 1 Cross-currency swaps 10 (2) Equity 7 1 Foreign exchange derivatives (44) (34) Total in other expense, net $ (27) $ (34) |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 Three Months Ended March 31, 2019 Pretax Tax benefit (expense) Net-of-tax Pretax Tax benefit Net-of-tax Currency translation adjustments: Unrealized gains (losses): Foreign currency $ (309) $ 47 $ (262) $ (98) $ 2 $ (96) Net investment hedges 167 (46) 121 27 — 27 Total currency translation adjustments (142) 1 (141) (71) 2 (69) Derivative adjustments: Unrealized gains (losses) (196) 45 (151) (12) 4 (8) Reclassifications from other comprehensive income to net income (10) 2 (8) (3) — (3) Total derivative adjustments (206) 47 (159) (15) 4 (11) Other comprehensive income (loss) adjustments $ (348) $ 48 $ (300) $ (86) $ 6 $ (80) |
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, 2020 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (847) $ 32 $ (7) $ (822) Other comprehensive income (loss) before reclassifications (141) (151) — (292) Reclassifications from accumulated other comprehensive loss to net income — (8) — (8) Other comprehensive income (loss) (141) (159) — (300) Ending balance $ (988) $ (127) $ (7) $ (1,122) Three Months Ended March 31, 2019 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (804) $ 16 $ 3 $ (785) Other comprehensive income (loss) 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) |
Revenues And Accounts Receiva_2
Revenues And Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 U.S. Networks International Networks Other Total U.S. Networks International Networks Other Total Revenues: Advertising $ 1,026 $ 376 $ — $ 1,402 $ 1,022 $ 393 $ — $ 1,415 Distribution 708 515 — 1,223 697 527 — 1,224 Other 22 32 4 58 33 32 3 68 Total $ 1,756 $ 923 $ 4 $ 2,683 $ 1,752 $ 952 $ 3 $ 2,707 |
Accounts Receivable, Allowance for Credit Loss | Changes in allowance for credit losses consisted of the following (in millions): December 31, 2019 Impact of adoption of ASU 2016-13 Provisions for credit losses Write-offs March 31, 2020 Distribution customers $ 19 $ 1 $ — $ (2) $ 18 Advertising and other customers 35 (3) 5 (3) 34 Total $ 54 $ (2) $ 5 $ (5) $ 52 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Equity-Based Compensation Expense | The table below presents the components of share-based compensation (benefit) expense (in millions), which is recorded in selling, general and administrative expense in the consolidated statements of operations. Three Months Ended March 31, 2020 2019 PRSUs $ (17) $ 10 RSUs 17 6 Stock options 9 9 SARs (13) 5 Total share-based compensation (benefit) expense $ (4) $ 30 Tax benefit recognized $ 2 $ 3 |
Schedule of Other Share-based Compensation, Activity | The table below presents awards granted (in millions, except weighted-average grant price). Three Months Ended March 31, 2020 Awards Weighted-Average Grant Price Awards granted: PRSUs 0.5 $ 25.70 RSUs 4.2 $ 25.76 Stock options 1.3 $ 25.70 |
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, 2020 (in millions, except years). Unrecognized Compensation Cost Weighted-Average Amortization Period PRSUs $ 9 0.91 RSUs 271 3.19 Stock options 90 2.56 SARs 1 1.47 Total unrecognized compensation cost $ 371 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 U.S. federal statutory income tax provision $ 113 21 % $ 120 21 % State and local income taxes, net of federal tax benefit 14 3 % 20 4 % Effect of foreign operations 27 5 % 11 2 % Change in uncertain tax positions 4 — % 6 1 % Noncontrolling interest adjustment (10) (2) % (12) (2) % Deferred tax adjustment (23) (4) % — — % Other, net 5 1 % 8 1 % Income tax expense $ 130 24 % $ 153 27 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Income Available to Discovery Stockholders | The table below sets forth the Company's calculated earnings per share. Earnings per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2020 2019 Numerator: Net income $ 407 $ 418 Less: Allocation of undistributed income to Series A-1 convertible preferred stock (39) (38) Net income attributable to noncontrolling interests (28) (29) Net income attributable to redeemable noncontrolling interests (2) (5) Redeemable noncontrolling interest adjustments to redemption value — (5) Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 338 $ 341 Allocation of net income to: Series A, B and C common stockholders $ 286 $ 279 Series C-1 convertible preferred stockholders 52 62 Total 338 341 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders 39 38 Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 377 $ 379 Denominator — weighted average: Series A, B and C common shares outstanding — basic 517 524 Impact of assumed preferred stock conversion 165 187 Dilutive effect of share-based awards 3 3 Series A, B and C common shares outstanding — diluted 685 714 Series C-1 convertible preferred stock outstanding — basic and diluted 5 6 Basic net income per share allocated to: Series A, B and C common stockholders $ 0.55 $ 0.53 Series C-1 convertible preferred stockholders $ 10.71 $ 10.31 Diluted net income per share allocated to: Series A, B and C common stockholders $ 0.55 $ 0.53 Series C-1 convertible preferred stockholders $ 10.65 $ 10.27 |
Schedule of Weighted Average Basic And Diluted Shares Outstanding | The table below sets forth the Company's calculated earnings per share. Earnings per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2020 2019 Numerator: Net income $ 407 $ 418 Less: Allocation of undistributed income to Series A-1 convertible preferred stock (39) (38) Net income attributable to noncontrolling interests (28) (29) Net income attributable to redeemable noncontrolling interests (2) (5) Redeemable noncontrolling interest adjustments to redemption value — (5) Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 338 $ 341 Allocation of net income to: Series A, B and C common stockholders $ 286 $ 279 Series C-1 convertible preferred stockholders 52 62 Total 338 341 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders 39 38 Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 377 $ 379 Denominator — weighted average: Series A, B and C common shares outstanding — basic 517 524 Impact of assumed preferred stock conversion 165 187 Dilutive effect of share-based awards 3 3 Series A, B and C common shares outstanding — diluted 685 714 Series C-1 convertible preferred stock outstanding — basic and diluted 5 6 Basic net income per share allocated to: Series A, B and C common stockholders $ 0.55 $ 0.53 Series C-1 convertible preferred stockholders $ 10.71 $ 10.31 Diluted net income per share allocated to: Series A, B and C common stockholders $ 0.55 $ 0.53 Series C-1 convertible preferred stockholders $ 10.65 $ 10.27 |
Schedule of Basic and Diluted Earnings per Share | The table below sets forth the Company's calculated earnings per share. Earnings per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2020 2019 Numerator: Net income $ 407 $ 418 Less: Allocation of undistributed income to Series A-1 convertible preferred stock (39) (38) Net income attributable to noncontrolling interests (28) (29) Net income attributable to redeemable noncontrolling interests (2) (5) Redeemable noncontrolling interest adjustments to redemption value — (5) Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 338 $ 341 Allocation of net income to: Series A, B and C common stockholders $ 286 $ 279 Series C-1 convertible preferred stockholders 52 62 Total 338 341 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders 39 38 Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 377 $ 379 Denominator — weighted average: Series A, B and C common shares outstanding — basic 517 524 Impact of assumed preferred stock conversion 165 187 Dilutive effect of share-based awards 3 3 Series A, B and C common shares outstanding — diluted 685 714 Series C-1 convertible preferred stock outstanding — basic and diluted 5 6 Basic net income per share allocated to: Series A, B and C common stockholders $ 0.55 $ 0.53 Series C-1 convertible preferred stockholders $ 10.71 $ 10.31 Diluted net income per share allocated to: Series A, B and C common stockholders $ 0.55 $ 0.53 Series C-1 convertible preferred stockholders $ 10.65 $ 10.27 |
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 per share (in millions). Three Months Ended March 31, 2020 2019 Anti-dilutive share-based awards 22 21 PRSUs whose performance targets have not been achieved — 1 |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended March 31, 2020 2019 Cash paid for taxes, net $ 108 $ 34 Cash paid for interest, net 174 197 Non-cash investing and financing activities: Accrued purchases of property and equipment 59 26 Assets acquired under finance lease and other arrangements 58 2 |
Schedule Of Cash, Cash Equivalents And Restricted Cash | Cash, Cash Equivalents, and Restricted Cash March 31, 2020 December 31, 2019 Cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 1,453 $ 1,552 Restricted cash - other current assets (a) 81 — Total cash, cash equivalents, and restricted cash $ 1,534 $ 1,552 (a) Restricted cash includes cash posted as collateral related to forward starting interest rate swap contracts that were executed during 2019 and the three months ended March 31, 2020. (See Note 8.) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Revenues and service charges: Liberty Group $ 152 $ 168 Equity method investees 63 74 Other 22 14 Total revenues and service charges $ 237 $ 256 Interest income $ — $ 1 Expenses $ (53) $ (196) |
Schedule of Related Party Transactions Receivables | The table below presents receivables due from related parties (in millions). March 31, 2020 December 31, 2019 Receivables $ 160 $ 156 Payables $ 9 $ 18 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Segment | Revenues Three Months Ended March 31, 2020 2019 U.S. Networks $ 1,756 $ 1,752 International Networks 923 952 Other 4 3 Total revenues $ 2,683 $ 2,707 |
Schedule of Adjusted OIBDA by Segment | Adjusted OIBDA Three Months Ended March 31, 2020 2019 U.S. Networks $ 1,016 $ 1,061 International Networks 207 219 Other 2 1 Corporate and inter-segment eliminations (112) (122) Total Adjusted OIBDA $ 1,113 $ 1,159 |
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, 2020 2019 Net income available to Discovery, Inc. $ 377 $ 384 Net income attributable to redeemable noncontrolling interests 2 5 Net income attributable to noncontrolling interests 28 29 Income tax expense 130 153 Income before income taxes 537 571 Other expense, net 58 27 Loss (income) from equity investees, net 21 (11) Loss on extinguishment of debt — 5 Interest expense, net 163 182 Operating income 779 774 Restructuring and other charges 15 5 Depreciation and amortization 326 372 Employee share-based compensation (7) 30 Transaction and integration costs — 7 Settlement of a withholding tax claim — (29) Total Adjusted OIBDA $ 1,113 $ 1,159 |
Schedule of Total Assets by Segment | Total Assets March 31, 2020 December 31, 2019 U.S. Networks $ 17,933 $ 18,156 International Networks 7,838 8,145 Other 179 204 Corporate and inter-segment eliminations 7,440 7,230 Total assets $ 33,390 $ 33,735 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 U.S. Networks $ 12 $ 4 International Networks 1 4 Corporate and inter-segment eliminations 2 (3) Total restructuring and other charges $ 15 $ 5 |
Schedule of Restructuring and Related Costs Changes in Exit Liabilities | Changes in restructuring and other liabilities recorded in accrued liabilities by major category were as follows (in millions). U.S. Networks International Networks Corporate and inter-segment eliminations Total December 31, 2019 $ 4 $ 5 $ 9 $ 18 Employee termination accruals, net 12 1 1 14 Other accruals — — 1 1 Cash paid (14) (4) (2) (20) March 31, 2020 $ 2 $ 2 $ 9 $ 13 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Schedule Of Maximum Consolidated Leverage Ratio | The financial covenants were modified to reset the Maximum Consolidated Leverage Ratio as set forth below: Measurement Period Ending Maximum Consolidated Leverage Ratio March 31, 2020 and June 30, 2020 5.00:1.00 September 30, 2020 through March 31, 2021 5.50:1.00 June 30, 2021 5.00:1.00 September 30, 2021 and thereafter 4.50:1.00 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet March 31, 2020 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 12 $ — $ 1,028 $ 109 $ 304 $ — $ 1,453 Receivables, net — — — 479 1,309 776 — 2,564 Content rights and prepaid license fees, net — — — — 89 — — 89 Prepaid expenses and other current assets 2 11 14 151 222 120 — 520 Inter-company trade receivables, net — 33 — 295 — — (328) — Total current assets 2 56 14 1,953 1,729 1,200 (328) 4,626 Investment in and advances to subsidiaries 9,529 12,379 — 6,807 — — (28,715) — Noncurrent content rights, net — — — 800 1,948 1,008 — 3,756 Goodwill — — — 3,678 3,160 6,128 — 12,966 Intangible assets, net — — — 230 1,051 7,051 — 8,332 Equity method investments — — — 16 301 225 — 542 Other noncurrent assets, including property and equipment, net — 48 20 1,238 1,371 511 (20) 3,168 Total assets $ 9,531 $ 12,483 $ 34 $ 14,722 $ 9,560 $ 16,123 $ (29,063) $ 33,390 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 58 $ — $ 542 $ 7 $ — $ — $ 607 Other current liabilities 59 9 — 467 1,250 483 — 2,268 Inter-company trade payables, net — — — — 295 33 (328) — Total current liabilities 59 67 — 1,009 1,552 516 (328) 2,875 Noncurrent portion of debt — 77 — 15,190 — — — 15,267 Negative carrying amount in subsidiaries, net — — 2,921 — — 1,925 (4,846) — Other noncurrent liabilities 2 64 — 1,444 758 1,576 3,844 Total liabilities 61 208 2,921 17,643 2,310 4,017 (5,174) 21,986 Redeemable noncontrolling interests — — — — 442 — — 442 Total Discovery, Inc. stockholders' equity 9,470 12,275 (2,887) (2,921) 6,808 12,106 (25,381) 9,470 Noncontrolling interests — — — — — — 1,492 1,492 Total equity 9,470 12,275 (2,887) (2,921) 6,808 12,106 (23,889) 10,962 Total liabilities and equity $ 9,531 $ 12,483 $ 34 $ 14,722 $ 9,560 $ 16,123 $ (29,063) $ 33,390 Condensed Consolidating Balance Sheet December 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 60 $ — $ 801 $ 396 $ 295 $ — $ 1,552 Receivables, net — — — 456 1,372 805 — 2,633 Content rights, net — — — 3 539 37 — 579 Prepaid expenses and other current assets 3 4 20 72 212 142 — 453 Inter-company trade receivables, net — 34 — 324 — — (358) — Total current assets 3 98 20 1,656 2,519 1,279 (358) 5,217 Investment in and advances to subsidiaries 9,891 12,548 — 6,811 — — (29,250) — Noncurrent content rights, net — — — 760 1,357 1,012 — 3,129 Goodwill — — — 3,678 3,183 6,189 — 13,050 Intangible assets, net — — — 230 1,117 7,320 — 8,667 Equity method investments — — — 14 317 237 — 568 Other noncurrent assets, including property and equipment, net — 51 21 1,133 1,372 547 (20) 3,104 Total assets $ 9,894 $ 12,697 $ 41 $ 14,282 $ 9,865 $ 16,584 $ (29,628) $ 33,735 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 58 $ — $ 541 $ 10 $ — $ — $ 609 Other current liabilities — 7 — 547 1,482 594 — 2,630 Inter-company trade payables, net — — — — 324 34 (358) — Total current liabilities — 65 — 1,088 1,816 628 (358) 3,239 Noncurrent portion of debt — 77 — 14,733 — — — 14,810 Negative carrying amount in subsidiaries, net — — 2,739 — — 1,799 (4,538) — Other noncurrent liabilities 3 69 — 1,200 795 1,674 (21) 3,720 Total liabilities 3 211 2,739 17,021 2,611 4,101 (4,917) 21,769 Redeemable noncontrolling interests — — — — 442 — — 442 Total Discovery, Inc. stockholders’ equity (deficit) 9,891 12,486 (2,698) (2,739) 6,812 12,483 (26,344) 9,891 Noncontrolling interests — — — — — — 1,633 1,633 Total equity (deficit) 9,891 12,486 (2,698) (2,739) 6,812 12,483 (24,711) 11,524 Total liabilities and equity $ 9,894 $ 12,697 $ 41 $ 14,282 $ 9,865 $ 16,584 $ (29,628) $ 33,735 |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations Three Months Ended March 31, 2020 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 533 $ 1,261 $ 898 $ (9) $ 2,683 Costs of revenues, excluding depreciation and amortization — — — 106 566 251 (5) 918 Selling, general and administrative 8 1 — 62 457 122 (5) 645 Depreciation and amortization — — — 12 81 233 — 326 Restructuring and other charges — — — 3 3 9 — 15 Total costs and expenses 8 1 — 183 1,107 615 (10) 1,904 Operating (loss) income (8) (1) — 350 154 283 1 779 Equity in earnings of subsidiaries 383 276 173 38 — 116 (986) — Interest expense, net — (1) — (151) (11) — — (163) Income (loss) from equity investees, net — — — 2 (29) 6 — (21) Other expense, net — (2) — (16) (36) (4) — (58) Income before income taxes 375 272 173 223 78 401 (985) 537 Income tax benefit (expense) 2 1 — (48) (41) (44) — (130) Net income 377 273 173 175 37 357 (985) 407 Net income attributable to noncontrolling interests — — — — — — (28) (28) Net income attributable to redeemable noncontrolling interests — — — — — — (2) (2) Net income available to Discovery, Inc. $ 377 $ 273 $ 173 $ 175 $ 37 $ 357 $ (1,015) $ 377 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 Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2020 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 377 $ 273 $ 173 $ 175 $ 37 $ 357 $ (985) $ 407 Other comprehensive (loss) income adjustments, net of tax: Currency translation (141) (160) 19 19 (4) (147) 273 (141) Derivatives (159) — (159) (159) (159) (106) 583 (159) Comprehensive income (loss) 77 113 33 35 (126) 104 (129) 107 Comprehensive income attributable to noncontrolling interests — — — — — — (28) (28) Comprehensive income attributable to redeemable noncontrolling interests — — — — — — (2) (2) Comprehensive income (loss) attributable to Discovery, Inc. $ 77 $ 113 $ 33 $ 35 $ (126) $ 104 $ (159) $ 77 Condensed Consolidating Statement of Comprehensive Income 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 Cash Flows | Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2020 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash provided by (used in) operating activities $ 54 $ (6) $ 6 $ (39) $ (12) $ 332 $ — $ 335 Investing Activities Investments in and advances to equity investments — — — (2) (39) (1) — (42) Purchases of property and equipment — — — (44) (52) (9) — (105) Inter-company distributions and other investing activities, net — — — 8 69 — — 77 Cash provided by (used in) investing activities — — — (38) (22) (10) — (70) Financing Activities Borrowings under revolving credit facility — — — 500 — — — 500 Repurchases of stock (527) — — — — — — (527) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — — (2) (171) — (173) Inter-company contributions (distributions) and other financing activities, net 473 (42) (6) (115) (227) (142) — (59) Cash used in (provided by) financing activities (54) (42) (6) 385 (229) (313) — (259) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — — (24) — — (24) Net change in cash, cash equivalents, and restricted cash — (48) — 308 (287) 9 — (18) Cash, cash equivalents, and restricted cash, beginning of period — 60 — 801 396 295 — 1,552 Cash, cash equivalents, and restricted cash, end of period $ — $ 12 $ — $ 1,109 $ 109 $ 304 $ — $ 1,534 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) Purchases of property and equipment — — — (3) (33) (8) — (44) Inter-company distributions and other investing activities, net — — — 20 5 1 (20) 6 Cash provided by (used in) investing activities — — — 17 (84) (7) (20) (94) Financing Activities Principal repayments of debt, including discount payment — — — (453) — — — (453) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — — (10) (153) — (163) Inter-company (distributions) contributions and other financing activities, net (15) (78) (10) 517 (30) (440) 20 (36) 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 |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) | Oct. 01, 2019USD ($) | Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Aug. 11, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of reportable segments | segment | 2 | ||||||
Impairment of goodwill | $ 0 | $ 0 | |||||
Borrowings under revolving credit facility | 500,000,000 | $ 0 | |||||
Total debt | 15,995,000,000 | $ 15,544,000,000 | |||||
Content rights and prepaid license fees, net | 89,000,000 | 579,000,000 | |||||
Cumulative effect of accounting changes | $ 2,000,000 | $ 0 | |||||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of accounting changes | $ 30,000,000 | ||||||
Retained Earnings | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of accounting changes | $ 2,000,000 | ||||||
2.800% Senior notes, semi-annual interest, due June 2020 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total debt | 600,000,000 | 600,000,000 | |||||
4.375% Senior notes, semi-annual interest, due June 2021 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total debt | 640,000,000 | 640,000,000 | |||||
Line of Credit | Revolving credit facility | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Revolving line of credit, maximum borrowing capacity | $ 2,500,000,000 | ||||||
Total debt | $ 500,000,000 | $ 0 |
Acquisitions (Lifestyle Busines
Acquisitions (Lifestyle Business - Narrative) (Details) $ in Millions | Jun. 11, 2019USD ($)installment | Jun. 10, 2019USD ($) |
Lifestyle Business | ||
Business Acquisition [Line Items] | ||
Note receivable | $ 130 | |
UKTV | Corporate Joint Venture | ||
Business Acquisition [Line Items] | ||
Note receivable | $ 118 | |
BBC Studios | Lifestyle Business | ||
Business Acquisition [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investment, difference between carrying amount and underlying equity | 5 | |
BBC Studios | Corporate Joint Venture | ||
Business Acquisition [Line Items] | ||
Note receivable | 130 | |
Proceeds from divestiture of interest in affiliates | $ 88 | |
Notes receivable, number of installments | installment | 2 | |
Electronic Program Guide And Trademarks | Lifestyle Business | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 6 years |
Acquisitions (LIfestyle Busin_2
Acquisitions (LIfestyle Business) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Jun. 11, 2019 | Jun. 10, 2019 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 12,966 | $ 13,050 | ||
Lifestyle Business | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 17 | |||
Content rights | 18 | |||
Intangible assets | 34 | |||
Goodwill | 121 | |||
Accrued liabilities | (12) | |||
Total assets acquired and liabilities assumed in Lifestyle Business | 178 | |||
Note receivable from BBC | 130 | |||
Cash received | 88 | |||
Net assets received in dissolution of UKTV joint venture | 396 | |||
Corporate Joint Venture | BBC Studios | ||||
Business Acquisition [Line Items] | ||||
Note receivable from BBC | 130 | |||
Corporate Joint Venture | BBC Studios | Licensing Agreements | ||||
Business Acquisition [Line Items] | ||||
Licensing agreement term | 10 years | |||
Corporate Joint Venture | UKTV | ||||
Business Acquisition [Line Items] | ||||
Note receivable from BBC | $ 118 | |||
Carrying value of UKTV equity method investment | 278 | |||
Settlement of note receivable | 118 | |||
Total assets derecognized in dissolution of UKTV joint venture | $ 396 |
Acquisitions (Other) (Details)
Acquisitions (Other) (Details) - USD ($) $ in Millions | Jul. 19, 2019 | May 13, 2019 | Jan. 08, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 07, 2019 |
Business Acquisition [Line Items] | |||||||
Remeasurement gain | $ 0 | $ 8 | |||||
Goodwill | $ 12,966 | $ 13,050 | |||||
Golf Digest | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration transferred | $ 36 | ||||||
Net assets acquired | 36 | ||||||
Net working capital liabilities | (12) | ||||||
Intangible assets | 25 | ||||||
Goodwill | $ 23 | ||||||
PSG | |||||||
Business Acquisition [Line Items] | |||||||
Step acquisition, equity interest in acquiree, percentage | 20.10% | ||||||
Percentage of voting interests acquired | 70.70% | ||||||
Remeasurement gain | $ 8 | ||||||
Trademarks, Trade Names and Licensing Agreements | Golf Digest | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible assets, weighted average useful life | 9 years | ||||||
Magnolia Discovery Ventures, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percentage by parent | 75.00% | ||||||
Magnolia Discovery Ventures, LLC | Corporate Joint Venture | |||||||
Business Acquisition [Line Items] | |||||||
Put at fair value, contractual period | 6 years 6 months | ||||||
Ownership percentage by noncontrolling owners, additional incentive equity | 5.00% | ||||||
Magnolia Discovery Ventures, LLC | Corporate Joint Venture | Magnolia Discovery Ventures, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 25.00% |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Equity investments without readily determinable fair values: | $ 520 | $ 514 |
Total Investments | 1,091 | 1,133 |
Equity method investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 542 | 568 |
Equity method investments | nC+ | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 170 | 182 |
Equity method investment, ownership percentage | 32.00% | |
Equity method investments | Discovery Solar Ventures, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 89 | 92 |
Equity method investments | All3Media | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 59 | 75 |
Equity method investment, ownership percentage | 50.00% | |
Equity method investments | Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 224 | 219 |
Other noncurrent assets | Group Nine Media | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity investments without readily determinable fair values: | $ 256 | 256 |
Other noncurrent assets | Group Nine Media | Group Nine Media | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage by noncontrolling owners | 25.00% | |
Other noncurrent assets | Formula E | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity investments without readily determinable fair values: | $ 65 | 65 |
Other noncurrent assets | Formula E | Formula E | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage by noncontrolling owners | 25.00% | |
Other noncurrent assets | Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity investments without readily determinable fair values: | $ 199 | 193 |
Other noncurrent assets | Common Stock | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity investments | $ 29 | $ 51 |
Investments (Equity Method Inve
Investments (Equity Method Investments) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Impairment losses | $ 0 | $ 0 | |
Variable interest, maximum exposure to loss | 303,000,000 | ||
Carrying value of investments in VIE's accounted for using the equity method | 160,000,000 | $ 160,000,000 | |
Variable interest entity gains (losses) | (9,000,000) | 3,000,000 | |
Various equity method investments, aggregated | |||
Schedule of Equity Method Investments [Line Items] | |||
Amortization of intangible assets | 3,000,000 | $ 2,000,000 | |
Expected future amortization of intangible assets | $ 54,000,000 |
Investments (Common Stock Inves
Investments (Common Stock Investments with Readily Determinable Fair Value ) (Details) - Lionsgate Collar - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Net losses recognized during the period on equity securities | $ (22) | $ 0 |
Less: Net losses recognized on equity securities sold | 0 | 0 |
Unrealized losses recognized during reporting period on equity securities still held at the reporting date | $ (22) | $ 0 |
Percentage of shares pledged as collateral | 50.00% | |
Proceeds from settlement of equity collar | $ 44 | |
Gain on settlement of equity collar | $ 7 |
Investments (Equity Investments
Investments (Equity Investments Without Readily Determinable Fair Values Assessed Under the Measurement Alternative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Other Investment Not Readily Marketable [Line Items] | ||
Equity investments without readily determinable fair values: | $ 520 | $ 514 |
Various Equity Investments Without Readily Determinable Fair Values | ||
Other Investment Not Readily Marketable [Line Items] | ||
Equity investments without readily determinable fair values: | 6 | |
Equity securities without readily determinable fair value, increase (decrease) | $ 9 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured On Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $ 373 | $ 262 |
Liabilities | 204 | 233 |
Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 153 | 10 |
Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 12 | 11 |
Company-owned life insurance contracts | 3 | 4 |
Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 163 | 192 |
Company-owned life insurance contracts | 42 | 45 |
Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 24 | 24 |
Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 180 | 209 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 175 | 203 |
Liabilities | 204 | 233 |
Level 1 | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | 0 |
Level 1 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 12 | 11 |
Company-owned life insurance contracts | 0 | 0 |
Level 1 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 163 | 192 |
Company-owned life insurance contracts | 0 | 0 |
Level 1 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 24 | 24 |
Level 1 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 180 | 209 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 198 | 59 |
Liabilities | 0 | 0 |
Level 2 | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 153 | 10 |
Level 2 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 3 | 4 |
Level 2 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 42 | 45 |
Level 2 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Level 2 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 3 | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | 0 |
Level 3 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 0 | 0 |
Level 3 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 0 | 0 |
Level 3 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Level 3 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Billions | Mar. 31, 2020 | Dec. 31, 2019 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes, fair value | $ 15.7 | $ 17.1 |
Content Rights (Schedule Of Con
Content Rights (Schedule Of Content Rights) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Licensed content rights: | ||
Accumulated amortization | $ (6,496) | $ (6,132) |
Total content rights, net | 3,845 | 3,708 |
Current portion | (89) | (579) |
Noncurrent portion | 3,756 | 3,129 |
Content rights | ||
Produced content rights: | ||
Completed | 7,171 | 6,976 |
In-production | 715 | 582 |
Coproduced content rights: | ||
Completed | 915 | 882 |
In-production | 50 | 50 |
Licensed content rights: | ||
Acquired | 1,100 | 1,101 |
Prepaid | 390 | 249 |
Content rights, at cost | $ 10,341 | $ 9,840 |
Content rights | Maximum | ||
Licensed content rights: | ||
Useful life of intangible asset | 4 years | |
Content rights | Minimum | ||
Licensed content rights: | ||
Useful life of intangible asset | 2 years | |
Content rights | Operating Cycle Ended March 31, 2021 | ||
Licensed content rights: | ||
Produced and co-produced content rights, expected amortization, percent | 56.00% | |
Licensed content rights, expected amortization, percent | 51.00% | |
Content rights | Operating Cycle Ended March 31, 2022 | ||
Licensed content rights: | ||
Produced and co-produced content rights, expected amortization, percent | 27.00% | |
Licensed content rights, expected amortization, percent | 26.00% | |
Content rights | Operating Cycle Ended March 31, 2023 | ||
Licensed content rights: | ||
Produced and co-produced content rights, expected amortization, percent | 13.00% | |
Licensed content rights, expected amortization, percent | 10.00% |
Content Rights (Schedule Of C_2
Content Rights (Schedule Of Content Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Content amortization | $ 703 | $ 697 |
Other production charges | 84 | 94 |
Content impairments | 1 | 0 |
Total content expense | $ 788 | $ 791 |
Goodwill - Goodwill Activity (D
Goodwill - Goodwill Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 13,050 | |
Foreign currency translation | (84) | |
Ending balance | 12,966 | |
U.S. Networks | ||
Goodwill [Roll Forward] | ||
Beginning balance | 10,813 | |
Foreign currency translation | 0 | |
Ending balance | 10,813 | |
Goodwill, accumulated impairments | 20 | $ 20 |
International Networks | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,237 | |
Foreign currency translation | (84) | |
Ending balance | 2,153 | |
Goodwill, accumulated impairments | $ 1,500 | $ 1,500 |
Goodwill - Goodwill Impairments
Goodwill - Goodwill Impairments (Details) - USD ($) | Oct. 01, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill [Line Items] | |||
Impairment of goodwill | $ 0 | $ 0 | |
Goodwill | 12,966,000,000 | $ 13,050,000,000 | |
Europe | |||
Goodwill [Line Items] | |||
Goodwill, headroom, percent | 19.00% | ||
Goodwill, headroom threshold, percent | 20.00% | ||
Goodwill | $ 1,800,000,000 | $ 1,800,000,000 |
Debt (Outstanding Debt) (Detail
Debt (Outstanding Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 15,995 | $ 15,544 |
Unamortized discount, premium and debt issuance costs, net (a) | (121) | (125) |
Debt, net of unamortized discount, premium and debt issuance costs | 15,874 | 15,419 |
Current portion of debt | (607) | (609) |
Noncurrent portion of debt | 15,267 | 14,810 |
Unamortized discount, premium and debt issuance costs, current | 1 | |
Line of Credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 500 | 0 |
Line of Credit | Program financing line of credit, quarterly interest based on adjusted LIBOR or variable prime rate | ||
Debt Instrument [Line Items] | ||
Total debt | $ 7 | 10 |
2.800% Senior notes, semi-annual interest, due June 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.80% | |
Total debt | $ 600 | 600 |
4.375% Senior notes, semi-annual interest, due June 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.375% | |
Total debt | $ 640 | 640 |
2.375% Senior notes, euro denominated, annual interest, due March 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.375% | |
Total debt | $ 330 | 336 |
3.300% Senior notes, semi-annual interest, due May 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.30% | |
Total debt | $ 496 | 496 |
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 | $ 1,167 | 1,167 |
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 | $ 496 | 525 |
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 | $ 662 | 673 |
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 |
4.125% Senior notes, semi-annual interest, due May 2029 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.125% | |
Total debt | $ 750 | 750 |
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 |
5.300% Senior notes, semi-annual interest, due May 2049 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.30% | |
Total debt | $ 750 | $ 750 |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | May 21, 2019 | |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ 5,000,000 | |||
Long-term debt, gross | 15,995,000,000 | $ 15,544,000,000 | $ 15,544,000,000 | ||
4.125% Senior notes, semi-annual interest, due May 2029 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 750,000,000 | 750,000,000 | 750,000,000 | ||
5.300% Senior notes, semi-annual interest, due May 2049 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 750,000,000 | 750,000,000 | 750,000,000 | ||
Senior Notes | 4.125% Senior notes, semi-annual interest, due May 2029 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 750,000,000 | ||||
Senior Notes | 5.300% Senior notes, semi-annual interest, due May 2049 | |||||
Debt Instrument [Line Items] | |||||
Face amount | 750,000,000 | ||||
Senior Notes | 4.125% and 5.300% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized discount | 6,000,000 | ||||
Debt issuance costs, gross | 12,000,000 | ||||
Senior Notes | 2.750% and 5.050% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repurchased face amount | $ 1,300,000,000 | ||||
Loss on extinguishment of debt | 23,000,000 | ||||
Loss on extinguishment of debt, net premiums to par value | 20,000,000 | ||||
Loss on extinguishment of debt, other non cash charges | 3,000,000 | ||||
Senior Notes | 5.625% Senior notes, semi-annual interest, due August 2019 | |||||
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | 5,000,000 | ||||
Long-term debt, gross | $ 411,000,000 | ||||
Open Market Bond | 5.625% Senior notes, semi-annual interest, due August 2019 | |||||
Debt Instrument [Line Items] | |||||
Repurchased face amount | $ 55,000,000 | $ 55,000,000 | |||
Scripps Networks | Senior Notes | Un-exchanged Scripps Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount of liabilities assumed | $ 135,000,000 |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 11, 2017USD ($)renewal | |
Line of Credit Facility [Line Items] | |||
Long-term debt, gross | $ 15,995,000,000 | $ 15,544,000,000 | |
Commercial paper | |||
Line of Credit Facility [Line Items] | |||
Revolving line of credit, maximum borrowing capacity | 1,500,000,000 | ||
Long-term debt, gross | $ 0 | 0 | |
Revolving credit facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Revolving line of credit, maximum borrowing capacity | $ 2,500,000,000 | ||
Number of renewal periods | renewal | 2 | ||
Term of renewal period | 364 days | ||
Maximum consolidated leverage ratio | 4.50 | ||
Outstanding borrowings | $ 500,000,000 | ||
Long-term debt, gross | $ 500,000,000 | $ 0 | |
Weighted average interest rate | 2.10% | ||
Revolving credit facility | Commercial paper | Euro Denominated Borrowings | |||
Line of Credit Facility [Line Items] | |||
Revolving line of credit, maximum borrowing capacity | $ 500,000,000 | ||
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 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - Designated as Hedging Instrument - Cash Flow Hedging $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative [Line Items] | |
Net deferred gains on derivative instruments expected to be reclassified from AOCI to income in the next 12 months | $ 31 |
Maximum length of time hedged in cash flow hedge | 10 years |
Forward Starting Interest Rate Swap | |
Derivative [Line Items] | |
Notional | $ 1,600 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Derivative Instruments, Fair Value) (Details) £ in Millions | Mar. 31, 2020GBP (£) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Derivatives, Fair Value [Line Items] | |||
Amounts eligible to be offset under master netting agreements | $ 0 | $ 0 | |
Long-term debt, gross | 15,995,000,000 | 15,544,000,000 | |
Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 81,000,000 | 88,000,000 | |
Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 202,000,000 | 137,000,000 | |
Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 4,000,000 | 25,000,000 | |
Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 402,000,000 | 165,000,000 | |
Not Designated as Hedging Instrument | Foreign exchange | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 983,000,000 | 1,177,000,000 | |
Not Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 4,000,000 | 0 | |
Not Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Foreign exchange | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 1,000,000 | 13,000,000 | |
Not Designated as Hedging Instrument | Foreign exchange | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 109,000,000 | 50,000,000 | |
Not Designated as Hedging Instrument | Cross-currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 139,000,000 | 279,000,000 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 3,000,000 | 3,000,000 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 5,000,000 | 0 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 5,000,000 | |
Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 0 | 65,000,000 | |
Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 19,000,000 | |
Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 18,000,000 | |
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 | 1,549,000,000 | 1,631,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 36,000,000 | 29,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 45,000,000 | 7,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 3,000,000 | 5,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 1,000,000 | 16,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 2,000,000,000 | 400,000,000 | |
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 | 38,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 234,000,000 | 0 | |
Net investment hedges | Designated as Hedging Instrument | Sterling Notes | |||
Derivatives, Fair Value [Line Items] | |||
Long-term debt, gross | £ 400 | 496,000,000 | |
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 52,000,000 | 52,000,000 | |
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 | 10,000,000 | 4,000,000 | |
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 | 3,439,000,000 | 3,535,000,000 | |
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 | 38,000,000 | 37,000,000 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 142,000,000 | 70,000,000 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 7,000,000 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | $ 58,000,000 | $ 94,000,000 |
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, 2020 | Mar. 31, 2019 | |
Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in accumulated other comprehensive loss | $ 76 | $ 3 |
Foreign exchange | Advertising | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 1 | 1 |
Foreign exchange | Distribution | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 8 | 4 |
Foreign exchange | Cost of Revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 1 | (2) |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in accumulated other comprehensive loss | $ (272) | $ (15) |
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, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | $ 173 | $ 34 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 12 | 7 |
Sterling Notes | ||
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | 30 | (17) |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 0 | 0 |
Cross-currency swaps | Interest expense, net | ||
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | 137 | 52 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 12 | 7 |
Foreign exchange | Other expense, net | ||
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | 6 | (1) |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | $ 0 | $ 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, 2020 | Mar. 31, 2019 | |
Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | $ (27) | $ (34) |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | 0 | 1 |
Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | 10 | (2) |
Equity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | 7 | 1 |
Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | $ (44) | $ (34) |
Equity (Repurchase Programs) (D
Equity (Repurchase Programs) (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Feb. 29, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | |
Class of Stock [Line Items] | |||||
Treasury stock (in shares) | 209,000,000 | 190,000,000 | |||
Treasury stock, value | $ 7,897,000,000 | $ 7,374,000,000 | |||
Series A Common Stock | Common Stock | |||||
Class of Stock [Line Items] | |||||
Treasury stock (in shares) | 3,000,000 | ||||
Treasury stock, value | $ 171,000,000 | ||||
Series C Common Stock | Common Stock | |||||
Class of Stock [Line Items] | |||||
Shares repurchased (in shares) | 19,400,000 | 0 | |||
Treasury stock (in shares) | 206,000,000 | ||||
Treasury stock, value | $ 7,700,000,000 | ||||
February 2020 Repurchase Program | Common Stock | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | ||||
February 2020 Repurchase Program | Series C Common Stock | Common Stock | |||||
Class of Stock [Line Items] | |||||
Shares repurchased, value | $ 523,000,000 | ||||
Shares repurchased, average price per share (in dollars per share) | $ 26.87 | ||||
April 2019 Repurchase Program | Common Stock | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 1,000,000,000 |
Equity (Other Comprehensive Inc
Equity (Other Comprehensive Income (Loss) Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Unrealized (losses) gains, Net-of-tax | $ (292) | $ (77) |
Reclassifications, Net-of-tax | 8 | 3 |
Other comprehensive income (loss) | (300) | (80) |
Accumulated Other Comprehensive Loss | ||
Derivative [Line Items] | ||
Other comprehensive (loss) income, Pretax | (348) | (86) |
Other comprehensive (loss) income, Tax Benefit (Expense) | 48 | 6 |
Other comprehensive income (loss) | (300) | (80) |
Currency Translation | ||
Derivative [Line Items] | ||
Unrealized (losses) gains, Net-of-tax | (141) | (69) |
Reclassifications, Net-of-tax | 0 | 0 |
Other comprehensive (loss) income, Pretax | (142) | (71) |
Other comprehensive (loss) income, Tax Benefit (Expense) | 1 | 2 |
Other comprehensive income (loss) | (141) | (69) |
Currency Translation | Foreign currency | ||
Derivative [Line Items] | ||
Unrealized (losses) gains, Pretax | (309) | (98) |
Unrealized (losses) gains, Tax Benefit (Expense) | 47 | 2 |
Unrealized (losses) gains, Net-of-tax | (262) | (96) |
Currency Translation | Net investment hedges | ||
Derivative [Line Items] | ||
Unrealized (losses) gains, Pretax | 167 | 27 |
Unrealized (losses) gains, Tax Benefit (Expense) | (46) | 0 |
Unrealized (losses) gains, Net-of-tax | 121 | 27 |
Derivatives | ||
Derivative [Line Items] | ||
Unrealized (losses) gains, Pretax | (196) | (12) |
Unrealized (losses) gains, Tax Benefit (Expense) | 45 | 4 |
Unrealized (losses) gains, Net-of-tax | (151) | (8) |
Reclassifications, Net-of-tax | 8 | 3 |
Other comprehensive (loss) income, Pretax | (206) | (15) |
Other comprehensive (loss) income, Tax Benefit (Expense) | 47 | 4 |
Other comprehensive income (loss) | (159) | (11) |
Derivatives | Income Statement Items | ||
Derivative [Line Items] | ||
Reclassifications, Pretax | (10) | (3) |
Reclassifications, Tax Benefit (Expense) | 2 | 0 |
Reclassifications, Net-of-tax | $ (8) | $ (3) |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 11,524 | $ 10,102 | ||
Other comprehensive income (loss) before reclassifications | (292) | (77) | ||
Reclassifications from accumulated other comprehensive loss to net income | (8) | (3) | ||
Other comprehensive income (loss) | (300) | (80) | ||
Cumulative effect of accounting changes | $ 2 | $ 0 | ||
Ending balance | 10,962 | 10,300 | ||
Accounting Standards Update 2018-02 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | (30) | |||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (822) | (785) | ||
Other comprehensive income (loss) | (300) | (80) | ||
Cumulative effect of accounting changes | $ 0 | (30) | ||
Ending balance | (1,122) | (895) | ||
Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (847) | (804) | ||
Other comprehensive income (loss) before reclassifications | (141) | (69) | ||
Reclassifications from accumulated other comprehensive loss to net income | 0 | 0 | ||
Other comprehensive income (loss) | (141) | (69) | ||
Ending balance | (988) | (901) | ||
Currency Translation | Accounting Standards Update 2018-02 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | (28) | |||
Derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 32 | 16 | ||
Other comprehensive income (loss) before reclassifications | (151) | (8) | ||
Reclassifications from accumulated other comprehensive loss to net income | (8) | (3) | ||
Other comprehensive income (loss) | (159) | (11) | ||
Ending balance | (127) | 3 | ||
Derivatives | Accounting Standards Update 2018-02 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | (2) | |||
Pension Plan and SERP Liability | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (7) | 3 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Reclassifications from accumulated other comprehensive loss to net income | 0 | 0 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Ending balance | $ (7) | $ 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 |
Revenues And Accounts Receiva_3
Revenues And Accounts Receivable - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,683 | $ 2,707 |
Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,402 | 1,415 |
Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,223 | 1,224 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 58 | 68 |
Operating Segments | U.S. Networks | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,756 | 1,752 |
Operating Segments | U.S. Networks | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,026 | 1,022 |
Operating Segments | U.S. Networks | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 708 | 697 |
Operating Segments | U.S. Networks | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22 | 33 |
Operating Segments | International Networks | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 923 | 952 |
Operating Segments | International Networks | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 376 | 393 |
Operating Segments | International Networks | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 515 | 527 |
Operating Segments | International Networks | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 32 | 32 |
Operating Segments | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4 | 3 |
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 | $ 4 | $ 3 |
Revenues And Accounts Receiva_4
Revenues And Accounts Receivable - Allowance for Credit Loss (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 54 |
Provisions for credit losses | 5 |
Write-offs | (5) |
Ending balance | 52 |
Distribution customers | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 19 |
Provisions for credit losses | 0 |
Write-offs | (2) |
Ending balance | 18 |
Advertising and other customers | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 35 |
Provisions for credit losses | 5 |
Write-offs | (3) |
Ending balance | 34 |
Cumulative Effect, Period Of Adoption, Adjustment | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | (2) |
Cumulative Effect, Period Of Adoption, Adjustment | Distribution customers | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 1 |
Cumulative Effect, Period Of Adoption, Adjustment | Advertising and other customers | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ (3) |
Revenues And Accounts Receiva_5
Revenues And Accounts Receivable - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue | $ 581 | $ 597 | |
Revenue recognized related to the contract liability (deferred revenues) | $ 102 | $ 99 |
Revenues And Accounts Receiva_6
Revenues And Accounts Receivable - Transaction Price Allocated to Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 $ in Millions | Mar. 31, 2020USD ($) |
Distribution | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,500 |
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 | $ 744 |
Remaining performance obligations, expected timing of satisfaction, period | 5 years |
Brand Licensing Contracts | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 126 |
Remaining performance obligations, expected timing of satisfaction, period | 12 years |
Share-based Compensation (Equit
Share-based Compensation (Equity-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation (benefit) expense | $ (4) | $ 30 |
Tax benefit recognized | 2 | 3 |
PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation (benefit) expense | (17) | 10 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation (benefit) expense | 17 | 6 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation (benefit) expense | 9 | 9 |
SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation (benefit) expense | $ (13) | $ 5 |
Share-based Compensation (Liabi
Share-based Compensation (Liability Classified) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Share-based Payment Arrangement [Abstract] | ||
Liability-classified share-based compensation award liability | $ 24 | $ 93 |
Current portion of liability-classified awards | $ 17 | $ 47 |
Share-based Compensation (Award
Share-based Compensation (Awards Granted and Converted During Period) (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted, Awards (in shares) | shares | 0.5 |
Awards granted, weighted-average grant price (in dollars per share) | $ / shares | $ 25.70 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted, Awards (in shares) | shares | 4.2 |
Awards granted, weighted-average grant price (in dollars per share) | $ / shares | $ 25.76 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, granted (in shares) | shares | 1.3 |
Stock options, weighted-average grant price (in dollars per share) | $ / shares | $ 25.70 |
Share-based Compensation (Unrec
Share-based Compensation (Unrecognized Compensation Cost) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 371 |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 9 |
Weighted-Average Amortization Period (years) | 10 months 28 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 271 |
Weighted-Average Amortization Period (years) | 3 years 2 months 8 days |
RSUs | Cash Settlement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 68 |
Weighted-Average Amortization Period (years) | 3 years 4 months 24 days |
RSUs | Stock Settlement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-Average Amortization Period (years) | 1 year 10 months 28 days |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 90 |
Weighted-Average Amortization Period (years) | 2 years 6 months 21 days |
SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 1 |
Weighted-Average Amortization Period (years) | 1 year 5 months 19 days |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Tax Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
U.S. federal statutory income tax provision | $ 113 | $ 120 |
State and local income taxes, net of federal tax benefit | 14 | 20 |
Effect of foreign operations | 27 | 11 |
Change in uncertain tax positions | 4 | 6 |
Noncontrolling interest adjustment | (10) | (12) |
Deferred tax adjustment | (23) | 0 |
Other, net | 5 | 8 |
Income tax expense | $ 130 | $ 153 |
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 | 3.00% | 4.00% |
Effect of foreign operations | 5.00% | 2.00% |
Change in uncertain tax positions | 0.00% | 1.00% |
Noncontrolling interest adjustment | (2.00%) | (2.00%) |
Deferred tax adjustment | (4.00%) | 0.00% |
Other, net | 1.00% | 1.00% |
Income tax expense | 24.00% | 27.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 130 | $ 153 | |
Effective tax rate | 24.00% | 27.00% | |
Unrecognized tax benefits | $ 380 | $ 375 | |
Unrecognized tax benefits, decreases resulting from current period tax positions | 129 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 63 | $ 58 |
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, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net income | $ 407 | $ 418 |
Less: | ||
Net income attributable to noncontrolling interests | (28) | (29) |
Net income attributable to redeemable noncontrolling interests | (2) | (5) |
Redeemable noncontrolling interest adjustments to redemption value | 0 | (5) |
Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 338 | 341 |
Allocation of net income to: | ||
Total | 338 | 341 |
Series A-1 Convertible Preferred Stock | ||
Less: | ||
Allocation of undistributed income to Series A-1 convertible preferred stock | (39) | (38) |
Add: | ||
Allocation of undistributed income to Series A-1 convertible preferred stockholders | 39 | 38 |
Series A, B and C Common Stock and C1 Preferred Stock | ||
Less: | ||
Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 338 | 341 |
Allocation of net income to: | ||
Total | 338 | 341 |
Series A, B and C Common Stock | ||
Less: | ||
Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 286 | 279 |
Allocation of net income to: | ||
Total | 286 | 279 |
Add: | ||
Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share | $ 377 | $ 379 |
Denominator — weighted average: | ||
Series A, B and C common shares outstanding — basic (in shares) | 517 | 524 |
Impact of assumed preferred stock conversion (in shares) | 165 | 187 |
Dilutive effect of share-based awards (in shares) | 3 | 3 |
Series A, B and C common shares outstanding — diluted (in shares) | 685 | 714 |
Basic net income per share allocated to: | ||
Basic net income (loss) per share (in dollars per share) | $ 0.55 | $ 0.53 |
Diluted net income per share allocated to: | ||
Diluted net income (loss) per share (in dollars per share) | $ 0.55 | $ 0.53 |
Series C-1 Convertible Preferred Stock | ||
Less: | ||
Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | $ 52 | $ 62 |
Allocation of net income to: | ||
Total | $ 52 | $ 62 |
Denominator — weighted average: | ||
Series C-1 convertible preferred stock outstanding — basic and diluted (in shares) | 5 | 6 |
Basic net income per share allocated to: | ||
Basic net income (loss) per share (in dollars per share) | $ 10.71 | $ 10.31 |
Diluted net income per share allocated to: | ||
Diluted net income (loss) per share (in dollars per share) | $ 10.65 | $ 10.27 |
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, 2020 | Mar. 31, 2019 | |
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) | 22 | 21 |
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) | 0 | 1 |
Supplemental Disclosures (Sched
Supplemental Disclosures (Schedule of Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | ||
Cash paid for taxes, net | $ 108 | $ 34 |
Cash paid for interest, net | 174 | 197 |
Non-cash investing and financing activities: | ||
Accrued purchases of property and equipment | 59 | 26 |
Assets acquired under finance lease and other arrangements | $ 58 | $ 2 |
Supplemental Disclosures (Sch_2
Supplemental Disclosures (Schedule of Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Cash, cash equivalents, and restricted cash: | ||||
Cash and cash equivalents | $ 1,453 | $ 1,552 | ||
Restricted cash - other current assets | 81 | 0 | ||
Total cash, cash equivalents, and restricted cash | $ 1,534 | $ 1,552 | $ 745 | $ 986 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Board of Directors Chairman | Mar. 31, 2020 |
Liberty Global | |
Related Party Transaction [Line Items] | |
Aggregate voting power percentage of a related party | 30.00% |
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, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Total revenues and service charges | $ 237 | $ 256 |
Interest income | 0 | 1 |
Expenses | (53) | (196) |
Liberty Group | ||
Related Party Transaction [Line Items] | ||
Total revenues and service charges | 152 | 168 |
Equity method investees | ||
Related Party Transaction [Line Items] | ||
Total revenues and service charges | 63 | 74 |
Other | ||
Related Party Transaction [Line Items] | ||
Total revenues and service charges | $ 22 | $ 14 |
Related Party Transactions (S_2
Related Party Transactions (Schedule of Related Party Transactions, Receivables) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Related Party Transactions [Abstract] | ||
Receivables | $ 160 | $ 156 |
Payables | $ 9 | $ 18 |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Guarantees - Contingencies (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Other Commitments [Line Items] | ||
Guarantor obligations, current carrying value | $ 0 | $ 0 |
Material amounts for indemnifications or other contingencies | 0 | $ 0 |
Scripps Networks | ||
Other Commitments [Line Items] | ||
Decrease in selling, general and administrative expenses | $ (29,000,000) |
Reportable Segments (Schedule o
Reportable Segments (Schedule of Revenues by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 2,683 | $ 2,707 |
Operating Segments | U.S. Networks | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,756 | 1,752 |
Operating Segments | International Networks | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 923 | 952 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 4 | $ 3 |
Reportable Segments (Schedule_2
Reportable Segments (Schedule of Adjusted OIBDA by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | $ 1,113 | $ 1,159 |
Operating Segments | U.S. Networks | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | 1,016 | 1,061 |
Operating Segments | International Networks | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | 207 | 219 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | 2 | 1 |
Corporate and inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | $ (112) | $ (122) |
Reportable Segments (Schedule_3
Reportable Segments (Schedule of Reconciliation of Adjusted OIBDA to Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting [Abstract] | ||
Net income available to Discovery, Inc. | $ 377 | $ 384 |
Net income attributable to redeemable noncontrolling interests | 2 | 5 |
Net income attributable to noncontrolling interests | 28 | 29 |
Income tax expense | 130 | 153 |
Income before income taxes | 537 | 571 |
Other expense, net | 58 | 27 |
Loss (income) from equity investees, net | 21 | (11) |
Loss on extinguishment of debt | 0 | 5 |
Interest expense, net | 163 | 182 |
Operating income | 779 | 774 |
Restructuring and other charges | 15 | 5 |
Depreciation and amortization | 326 | 372 |
Employee share-based compensation | (7) | 30 |
Transaction and integration costs | 0 | 7 |
Settlement of a withholding tax claim | 0 | (29) |
Total Adjusted OIBDA | $ 1,113 | $ 1,159 |
Reportable Segments (Schedule_4
Reportable Segments (Schedule of Total Assets by Segment) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 33,390 | $ 33,735 |
Operating Segments | U.S. Networks | ||
Segment Reporting Information [Line Items] | ||
Total assets | 17,933 | 18,156 |
Operating Segments | International Networks | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,838 | 8,145 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 179 | 204 |
Corporate and inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 7,440 | $ 7,230 |
Restructuring and Other Charg_3
Restructuring and Other Charges (By Reporting Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | $ 15 | $ 5 |
Operating Segments | U.S. Networks | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | 12 | 4 |
Operating Segments | International Networks | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | 1 | 4 |
Corporate and inter-segment eliminations | Corporate and inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | $ 2 | $ (3) |
Restructuring and Other Charg_4
Restructuring and Other Charges (Liabilities) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Reserve | |
Beginning balance | $ 18 |
Employee termination accruals, net | 14 |
Other accruals | 1 |
Cash paid | (20) |
Ending balance | 13 |
Corporate and inter-segment eliminations | |
Restructuring Reserve | |
Beginning balance | 9 |
Employee termination accruals, net | 1 |
Other accruals | 1 |
Cash paid | (2) |
Ending balance | 9 |
U.S. Networks | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 4 |
Employee termination accruals, net | 12 |
Other accruals | 0 |
Cash paid | (14) |
Ending balance | 2 |
International Networks | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 5 |
Employee termination accruals, net | 1 |
Other accruals | 0 |
Cash paid | (4) |
Ending balance | $ 2 |
Subsequent Events (Details)
Subsequent Events (Details) - Amendment No. 2 To The Amended And Restated Credit Agreement [Member] - Revolving credit facility - Subsequent Event | Apr. 30, 2020 | Apr. 29, 2020 |
Subsequent Event [Line Items] | ||
Line Of Credit Facility, Covenant Compliance, Restricted Payments Covenant, Maximum Consolidated Leverage Ratio | 4.50 | |
London Interbank Offered Rate (LIBOR) | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 0.00% |
Base Rate | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 0.00% |
March 31, 2020 and June 30, 2020 | ||
Subsequent Event [Line Items] | ||
Maximum consolidated leverage ratio | 5 | |
September 30, 2020 through March 31, 2021 | ||
Subsequent Event [Line Items] | ||
Maximum consolidated leverage ratio | 5.50 | |
June 30, 2021 | ||
Subsequent Event [Line Items] | ||
Maximum consolidated leverage ratio | 5 | |
September 30, 2021 and thereafter | ||
Subsequent Event [Line Items] | ||
Maximum consolidated leverage ratio | 4.50 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements (Narrative) (Details) - DCL | Mar. 31, 2020 |
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, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 1,453 | $ 1,552 | ||
Receivables, net | 2,564 | 2,633 | ||
Content rights and prepaid license fees, net | 89 | 579 | ||
Prepaid expenses and other current assets | 520 | 453 | ||
Total current assets | 4,626 | 5,217 | ||
Noncurrent content rights, net | 3,756 | 3,129 | ||
Goodwill | 12,966 | 13,050 | ||
Intangible assets, net | 8,332 | 8,667 | ||
Equity method investments | 542 | 568 | ||
Other noncurrent assets | 2,128 | 2,153 | ||
Total assets | 33,390 | 33,735 | ||
Current liabilities: | ||||
Current portion of debt | 607 | 609 | ||
Total current liabilities | 2,875 | 3,239 | ||
Noncurrent portion of debt | 15,267 | 14,810 | ||
Deferred income taxes | 1,550 | 1,691 | ||
Other noncurrent liabilities | 2,294 | 2,029 | ||
Total liabilities | 21,986 | 21,769 | ||
Redeemable noncontrolling interests | 442 | 442 | ||
Total Discovery, Inc. stockholders' equity | 9,470 | 9,891 | ||
Noncontrolling interests | 1,492 | 1,633 | ||
Total equity | 10,962 | 11,524 | $ 10,300 | $ 10,102 |
Total liabilities and equity | 33,390 | 33,735 | ||
Reclassifications and Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Content rights and prepaid license fees, net | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Inter-company trade receivables, net | (328) | (358) | ||
Total current assets | (328) | (358) | ||
Investment in and advances to subsidiaries | (28,715) | (29,250) | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments | 0 | 0 | ||
Other noncurrent assets | (20) | (20) | ||
Total assets | (29,063) | (29,628) | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Inter-company trade payables, net | (328) | (358) | ||
Total current liabilities | (328) | (358) | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | (4,846) | (4,538) | ||
Other noncurrent liabilities | (21) | |||
Total liabilities | (5,174) | (4,917) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | (25,381) | (26,344) | ||
Noncontrolling interests | 1,492 | 1,633 | ||
Total equity | (23,889) | (24,711) | ||
Total liabilities and equity | (29,063) | (29,628) | ||
Discovery | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Content rights and prepaid license fees, net | 0 | 0 | ||
Prepaid expenses and other current assets | 2 | 3 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 2 | 3 | ||
Investment in and advances to subsidiaries | 9,529 | 9,891 | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments | 0 | 0 | ||
Other noncurrent assets | 0 | 0 | ||
Total assets | 9,531 | 9,894 | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Other current liabilities | 59 | 0 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 59 | 0 | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 2 | 3 | ||
Total liabilities | 61 | 3 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | 9,470 | 9,891 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 9,470 | 9,891 | ||
Total liabilities and equity | 9,531 | 9,894 | ||
Scripps Networks | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 12 | 60 | ||
Receivables, net | 0 | 0 | ||
Content rights and prepaid license fees, net | 0 | 0 | ||
Prepaid expenses and other current assets | 11 | 4 | ||
Inter-company trade receivables, net | 33 | 34 | ||
Total current assets | 56 | 98 | ||
Investment in and advances to subsidiaries | 12,379 | 12,548 | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments | 0 | 0 | ||
Other noncurrent assets | 48 | 51 | ||
Total assets | 12,483 | 12,697 | ||
Current liabilities: | ||||
Current portion of debt | 58 | 58 | ||
Other current liabilities | 9 | 7 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 67 | 65 | ||
Noncurrent portion of debt | 77 | 77 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 64 | 69 | ||
Total liabilities | 208 | 211 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | 12,275 | 12,486 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 12,275 | 12,486 | ||
Total liabilities and equity | 12,483 | 12,697 | ||
DCH | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Content rights and prepaid license fees, net | 0 | 0 | ||
Prepaid expenses and other current assets | 14 | 20 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 14 | 20 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments | 0 | 0 | ||
Other noncurrent assets | 20 | 21 | ||
Total assets | 34 | 41 | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | 2,921 | 2,739 | ||
Other noncurrent liabilities | 0 | 0 | ||
Total liabilities | 2,921 | 2,739 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | (2,887) | (2,698) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (2,887) | (2,698) | ||
Total liabilities and equity | 34 | 41 | ||
DCL | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1,028 | 801 | ||
Receivables, net | 479 | 456 | ||
Content rights and prepaid license fees, net | 0 | 3 | ||
Prepaid expenses and other current assets | 151 | 72 | ||
Inter-company trade receivables, net | 295 | 324 | ||
Total current assets | 1,953 | 1,656 | ||
Investment in and advances to subsidiaries | 6,807 | 6,811 | ||
Noncurrent content rights, net | 800 | 760 | ||
Goodwill | 3,678 | 3,678 | ||
Intangible assets, net | 230 | 230 | ||
Equity method investments | 16 | 14 | ||
Other noncurrent assets | 1,238 | 1,133 | ||
Total assets | 14,722 | 14,282 | ||
Current liabilities: | ||||
Current portion of debt | 542 | 541 | ||
Other current liabilities | 467 | 547 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 1,009 | 1,088 | ||
Noncurrent portion of debt | 15,190 | 14,733 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 1,444 | 1,200 | ||
Total liabilities | 17,643 | 17,021 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | (2,921) | (2,739) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (2,921) | (2,739) | ||
Total liabilities and equity | 14,722 | 14,282 | ||
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 109 | 396 | ||
Receivables, net | 1,309 | 1,372 | ||
Content rights and prepaid license fees, net | 89 | 539 | ||
Prepaid expenses and other current assets | 222 | 212 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 1,729 | 2,519 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 1,948 | 1,357 | ||
Goodwill | 3,160 | 3,183 | ||
Intangible assets, net | 1,051 | 1,117 | ||
Equity method investments | 301 | 317 | ||
Other noncurrent assets | 1,371 | 1,372 | ||
Total assets | 9,560 | 9,865 | ||
Current liabilities: | ||||
Current portion of debt | 7 | 10 | ||
Other current liabilities | 1,250 | 1,482 | ||
Inter-company trade payables, net | 295 | 324 | ||
Total current liabilities | 1,552 | 1,816 | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 758 | 795 | ||
Total liabilities | 2,310 | 2,611 | ||
Redeemable noncontrolling interests | 442 | 442 | ||
Total Discovery, Inc. stockholders' equity | 6,808 | 6,812 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 6,808 | 6,812 | ||
Total liabilities and equity | 9,560 | 9,865 | ||
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 304 | 295 | ||
Receivables, net | 776 | 805 | ||
Content rights and prepaid license fees, net | 0 | 37 | ||
Prepaid expenses and other current assets | 120 | 142 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 1,200 | 1,279 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 1,008 | 1,012 | ||
Goodwill | 6,128 | 6,189 | ||
Intangible assets, net | 7,051 | 7,320 | ||
Equity method investments | 225 | 237 | ||
Other noncurrent assets | 511 | 547 | ||
Total assets | 16,123 | 16,584 | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Other current liabilities | 483 | 594 | ||
Inter-company trade payables, net | 33 | 34 | ||
Total current liabilities | 516 | 628 | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | 1,925 | 1,799 | ||
Other noncurrent liabilities | 1,576 | 1,674 | ||
Total liabilities | 4,017 | 4,101 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | 12,106 | 12,483 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 12,106 | 12,483 | ||
Total liabilities and equity | 16,123 | 16,584 | ||
Discovery and Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 1,453 | 1,552 | ||
Receivables, net | 2,564 | 2,633 | ||
Content rights and prepaid license fees, net | 89 | 579 | ||
Prepaid expenses and other current assets | 520 | 453 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 4,626 | 5,217 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 3,756 | 3,129 | ||
Goodwill | 12,966 | 13,050 | ||
Intangible assets, net | 8,332 | 8,667 | ||
Equity method investments | 542 | 568 | ||
Other noncurrent assets | 3,168 | 3,104 | ||
Total assets | 33,390 | 33,735 | ||
Current liabilities: | ||||
Current portion of debt | 607 | 609 | ||
Other current liabilities | 2,268 | 2,630 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 2,875 | 3,239 | ||
Noncurrent portion of debt | 15,267 | 14,810 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 3,844 | 3,720 | ||
Total liabilities | 21,986 | 21,769 | ||
Redeemable noncontrolling interests | 442 | 442 | ||
Total Discovery, Inc. stockholders' equity | 9,470 | 9,891 | ||
Noncontrolling interests | 1,492 | 1,633 | ||
Total equity | 10,962 | 11,524 | ||
Total liabilities and equity | $ 33,390 | $ 33,735 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Operations) (Details) - USD ($) | Oct. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Condensed Income Statements, Captions [Line Items] | |||
Revenues | $ 2,683,000,000 | $ 2,707,000,000 | |
Costs of revenues, excluding depreciation and amortization | 918,000,000 | 930,000,000 | |
Selling, general and administrative | 645,000,000 | 626,000,000 | |
Depreciation and amortization | 326,000,000 | 372,000,000 | |
Impairment of goodwill | $ 0 | 0 | |
Restructuring and other charges | 15,000,000 | 5,000,000 | |
Total costs and expenses | 1,904,000,000 | 1,933,000,000 | |
Operating income | 779,000,000 | 774,000,000 | |
Interest expense, net | (163,000,000) | (182,000,000) | |
Loss on extinguishment of debt | 0 | (5,000,000) | |
Loss (income) from equity investees, net | (21,000,000) | 11,000,000 | |
Other income (expense), net | (58,000,000) | (27,000,000) | |
Income before income taxes | 537,000,000 | 571,000,000 | |
Income tax benefit (expense) | (130,000,000) | (153,000,000) | |
Net income | 407,000,000 | 418,000,000 | |
Net income attributable to noncontrolling interests | (28,000,000) | (29,000,000) | |
Net income attributable to redeemable noncontrolling interests | (2,000,000) | (5,000,000) | |
Net income available to Discovery, Inc. | 377,000,000 | 384,000,000 | |
Reclassifications and Eliminations | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | (9,000,000) | (7,000,000) | |
Costs of revenues, excluding depreciation and amortization | (5,000,000) | (4,000,000) | |
Selling, general and administrative | (5,000,000) | (2,000,000) | |
Depreciation and amortization | 0 | 0 | |
Restructuring and other charges | 0 | 0 | |
Total costs and expenses | (10,000,000) | (6,000,000) | |
Operating income | 1,000,000 | (1,000,000) | |
Equity in earnings (loss) of subsidiaries | (986,000,000) | (1,104,000,000) | |
Interest expense, net | 0 | 0 | |
Loss on extinguishment of debt | 0 | ||
Loss (income) from equity investees, net | 0 | 0 | |
Other income (expense), net | 0 | 0 | |
Income before income taxes | (985,000,000) | (1,105,000,000) | |
Income tax benefit (expense) | 0 | 0 | |
Net income | (985,000,000) | (1,105,000,000) | |
Net income attributable to noncontrolling interests | (28,000,000) | (29,000,000) | |
Net income attributable to redeemable noncontrolling interests | (2,000,000) | (5,000,000) | |
Net income available to Discovery, Inc. | (1,015,000,000) | (1,139,000,000) | |
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 | 8,000,000 | 5,000,000 | |
Depreciation and amortization | 0 | 0 | |
Restructuring and other charges | 0 | 0 | |
Total costs and expenses | 8,000,000 | 5,000,000 | |
Operating income | (8,000,000) | (5,000,000) | |
Equity in earnings (loss) of subsidiaries | 383,000,000 | 387,000,000 | |
Interest expense, net | 0 | 0 | |
Loss on extinguishment of debt | 0 | ||
Loss (income) from equity investees, net | 0 | 0 | |
Other income (expense), net | 0 | 0 | |
Income before income taxes | 375,000,000 | 382,000,000 | |
Income tax benefit (expense) | 2,000,000 | 2,000,000 | |
Net income | 377,000,000 | 384,000,000 | |
Net income attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to redeemable noncontrolling interests | 0 | 0 | |
Net income available to Discovery, Inc. | 377,000,000 | 384,000,000 | |
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 | 1,000,000 | 0 | |
Depreciation and amortization | 0 | 0 | |
Restructuring and other charges | 0 | 0 | |
Total costs and expenses | 1,000,000 | 0 | |
Operating income | (1,000,000) | 0 | |
Equity in earnings (loss) of subsidiaries | 276,000,000 | 230,000,000 | |
Interest expense, net | (1,000,000) | 0 | |
Loss on extinguishment of debt | 0 | ||
Loss (income) from equity investees, net | 0 | 0 | |
Other income (expense), net | (2,000,000) | 4,000,000 | |
Income before income taxes | 272,000,000 | 234,000,000 | |
Income tax benefit (expense) | 1,000,000 | (1,000,000) | |
Net income | 273,000,000 | 233,000,000 | |
Net income attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to redeemable noncontrolling interests | 0 | 0 | |
Net income available to Discovery, Inc. | 273,000,000 | 233,000,000 | |
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 | 173,000,000 | 220,000,000 | |
Interest expense, net | 0 | 0 | |
Loss on extinguishment of debt | 0 | ||
Loss (income) from equity investees, net | 0 | 0 | |
Other income (expense), net | 0 | 0 | |
Income before income taxes | 173,000,000 | 220,000,000 | |
Income tax benefit (expense) | 0 | 0 | |
Net income | 173,000,000 | 220,000,000 | |
Net income attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to redeemable noncontrolling interests | 0 | 0 | |
Net income available to Discovery, Inc. | 173,000,000 | 220,000,000 | |
DCL | Reportable Legal Entities | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | 533,000,000 | 507,000,000 | |
Costs of revenues, excluding depreciation and amortization | 106,000,000 | 101,000,000 | |
Selling, general and administrative | 62,000,000 | 69,000,000 | |
Depreciation and amortization | 12,000,000 | 12,000,000 | |
Restructuring and other charges | 3,000,000 | 0 | |
Total costs and expenses | 183,000,000 | 182,000,000 | |
Operating income | 350,000,000 | 325,000,000 | |
Equity in earnings (loss) of subsidiaries | 38,000,000 | 121,000,000 | |
Interest expense, net | (151,000,000) | (175,000,000) | |
Loss on extinguishment of debt | (5,000,000) | ||
Loss (income) from equity investees, net | 2,000,000 | 1,000,000 | |
Other income (expense), net | (16,000,000) | (6,000,000) | |
Income before income taxes | 223,000,000 | 261,000,000 | |
Income tax benefit (expense) | (48,000,000) | (41,000,000) | |
Net income | 175,000,000 | 220,000,000 | |
Net income attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to redeemable noncontrolling interests | 0 | 0 | |
Net income available to Discovery, Inc. | 175,000,000 | 220,000,000 | |
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | 1,261,000,000 | 1,296,000,000 | |
Costs of revenues, excluding depreciation and amortization | 566,000,000 | 588,000,000 | |
Selling, general and administrative | 457,000,000 | 425,000,000 | |
Depreciation and amortization | 81,000,000 | 80,000,000 | |
Restructuring and other charges | 3,000,000 | 5,000,000 | |
Total costs and expenses | 1,107,000,000 | 1,098,000,000 | |
Operating income | 154,000,000 | 198,000,000 | |
Equity in earnings (loss) of subsidiaries | 0 | 0 | |
Interest expense, net | (11,000,000) | (1,000,000) | |
Loss on extinguishment of debt | 0 | ||
Loss (income) from equity investees, net | (29,000,000) | (2,000,000) | |
Other income (expense), net | (36,000,000) | (20,000,000) | |
Income before income taxes | 78,000,000 | 175,000,000 | |
Income tax benefit (expense) | (41,000,000) | (49,000,000) | |
Net income | 37,000,000 | 126,000,000 | |
Net income attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to redeemable noncontrolling interests | 0 | 0 | |
Net income available to Discovery, Inc. | 37,000,000 | 126,000,000 | |
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | 898,000,000 | 911,000,000 | |
Costs of revenues, excluding depreciation and amortization | 251,000,000 | 245,000,000 | |
Selling, general and administrative | 122,000,000 | 129,000,000 | |
Depreciation and amortization | 233,000,000 | 280,000,000 | |
Restructuring and other charges | 9,000,000 | 0 | |
Total costs and expenses | 615,000,000 | 654,000,000 | |
Operating income | 283,000,000 | 257,000,000 | |
Equity in earnings (loss) of subsidiaries | 116,000,000 | 146,000,000 | |
Interest expense, net | 0 | (6,000,000) | |
Loss on extinguishment of debt | 0 | ||
Loss (income) from equity investees, net | 6,000,000 | 12,000,000 | |
Other income (expense), net | (4,000,000) | (5,000,000) | |
Income before income taxes | 401,000,000 | 404,000,000 | |
Income tax benefit (expense) | (44,000,000) | (64,000,000) | |
Net income | 357,000,000 | 340,000,000 | |
Net income attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to redeemable noncontrolling interests | 0 | 0 | |
Net income available to Discovery, Inc. | 357,000,000 | 340,000,000 | |
Discovery and Subsidiaries | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | 2,683,000,000 | 2,707,000,000 | |
Costs of revenues, excluding depreciation and amortization | 918,000,000 | 930,000,000 | |
Selling, general and administrative | 645,000,000 | 626,000,000 | |
Depreciation and amortization | 326,000,000 | 372,000,000 | |
Restructuring and other charges | 15,000,000 | 5,000,000 | |
Total costs and expenses | 1,904,000,000 | 1,933,000,000 | |
Operating income | 779,000,000 | 774,000,000 | |
Equity in earnings (loss) of subsidiaries | 0 | 0 | |
Interest expense, net | (163,000,000) | (182,000,000) | |
Loss on extinguishment of debt | (5,000,000) | ||
Loss (income) from equity investees, net | (21,000,000) | 11,000,000 | |
Other income (expense), net | (58,000,000) | (27,000,000) | |
Income before income taxes | 537,000,000 | 571,000,000 | |
Income tax benefit (expense) | (130,000,000) | (153,000,000) | |
Net income | 407,000,000 | 418,000,000 | |
Net income attributable to noncontrolling interests | (28,000,000) | (29,000,000) | |
Net income attributable to redeemable noncontrolling interests | (2,000,000) | (5,000,000) | |
Net income available to Discovery, Inc. | $ 377,000,000 | $ 384,000,000 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Statement of Income Captions [Line Items] | ||
Net income | $ 407 | $ 418 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (141) | (69) |
Derivatives | (159) | (11) |
Comprehensive income | 107 | 338 |
Comprehensive income attributable to noncontrolling interests | (28) | (29) |
Comprehensive income attributable to redeemable noncontrolling interests | (2) | (5) |
Comprehensive income attributable to Discovery, Inc. | 77 | 304 |
Reclassifications and Eliminations | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | (985) | (1,105) |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | 273 | 208 |
Derivatives | 583 | 40 |
Comprehensive income | (129) | (857) |
Comprehensive income attributable to noncontrolling interests | (28) | (29) |
Comprehensive income attributable to redeemable noncontrolling interests | (2) | (5) |
Comprehensive income attributable to Discovery, Inc. | (159) | (891) |
Discovery | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 377 | 384 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (141) | (69) |
Derivatives | (159) | (11) |
Comprehensive income | 77 | 304 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Discovery, Inc. | 77 | 304 |
Scripps Networks | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 273 | 233 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (160) | (17) |
Derivatives | 0 | 0 |
Comprehensive income | 113 | 216 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Discovery, Inc. | 113 | 216 |
DCH | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 173 | 220 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | 19 | (52) |
Derivatives | (159) | (11) |
Comprehensive income | 33 | 157 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Discovery, Inc. | 33 | 157 |
DCL | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 175 | 220 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | 19 | (52) |
Derivatives | (159) | (11) |
Comprehensive income | 35 | 157 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Discovery, Inc. | 35 | 157 |
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 37 | 126 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (4) | (35) |
Derivatives | (159) | (11) |
Comprehensive income | (126) | 80 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Discovery, Inc. | (126) | 80 |
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 357 | 340 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (147) | (52) |
Derivatives | (106) | (7) |
Comprehensive income | 104 | 281 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Discovery, Inc. | 104 | 281 |
Discovery and Subsidiaries | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 407 | 418 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (141) | (69) |
Derivatives | (159) | (11) |
Comprehensive income | 107 | 338 |
Comprehensive income attributable to noncontrolling interests | (28) | (29) |
Comprehensive income attributable to redeemable noncontrolling interests | $ (2) | (5) |
Comprehensive income attributable to Discovery, Inc. | $ 304 |
Condensed Consolidating Finan_7
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Cash provided by (used in) operating activities | $ 335 | $ 542 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | (22) |
Payments for investments | (42) | (34) |
Purchases of property and equipment | (105) | (44) |
Inter-company distributions and other investing activities, net | 77 | 6 |
Cash used in investing activities | (70) | (94) |
Financing Activities | ||
Principal repayments of debt, including discount payment | 0 | (453) |
Repurchases of stock | (527) | 0 |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (173) | (163) |
Inter-company contributions (distributions) and other financing activities, net | (59) | (36) |
Cash used in financing activities | (259) | (652) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (24) | (37) |
Net change in cash, cash equivalents, and restricted cash | (18) | (241) |
Cash, cash equivalents, and restricted cash, beginning of period | 1,552 | 986 |
Cash, cash equivalents, and restricted cash, end of period | 1,534 | 745 |
Reclassifications and Eliminations | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 0 | 0 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Investments in and advances to equity investments | 0 | |
Payments for investments | 0 | |
Purchases of property and equipment | 0 | 0 |
Inter-company distributions and other investing activities, net | 0 | (20) |
Cash used in investing activities | 0 | (20) |
Financing Activities | ||
Principal repayments of debt, including discount payment | 0 | |
Borrowings under term loan facilities | 0 | |
Repurchases of stock | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | 0 | 20 |
Cash used in financing activities | 0 | 20 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 |
Net change in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash, end of period | 0 | 0 |
Discovery | Reportable Legal Entities | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 54 | 15 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Investments in and advances to equity investments | 0 | |
Payments for investments | 0 | |
Purchases of property and equipment | 0 | 0 |
Inter-company distributions and other investing activities, net | 0 | 0 |
Cash used in investing activities | 0 | 0 |
Financing Activities | ||
Principal repayments of debt, including discount payment | 0 | |
Borrowings under term loan facilities | 0 | |
Repurchases of stock | (527) | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | 473 | (15) |
Cash used in financing activities | (54) | (15) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 |
Net change in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash, end of period | 0 | 0 |
Scripps Networks | Reportable Legal Entities | ||
Operating Activities | ||
Cash provided by (used in) operating activities | (6) | 0 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Investments in and advances to equity investments | 0 | |
Payments for investments | 0 | |
Purchases of property and equipment | 0 | 0 |
Inter-company distributions and other investing activities, net | 0 | 0 |
Cash used in investing activities | 0 | 0 |
Financing Activities | ||
Principal repayments of debt, including discount payment | 0 | |
Borrowings under term loan facilities | 0 | |
Repurchases of stock | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | (42) | (78) |
Cash used in financing activities | (42) | (78) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 |
Net change in cash, cash equivalents, and restricted cash | (48) | (78) |
Cash, cash equivalents, and restricted cash, beginning of period | 60 | 315 |
Cash, cash equivalents, and restricted cash, end of period | 12 | 237 |
DCH | Reportable Legal Entities | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 6 | 10 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Investments in and advances to equity investments | 0 | |
Payments for investments | 0 | |
Purchases of property and equipment | 0 | 0 |
Inter-company distributions and other investing activities, net | 0 | 0 |
Cash used in investing activities | 0 | 0 |
Financing Activities | ||
Principal repayments of debt, including discount payment | 0 | |
Borrowings under term loan facilities | 0 | |
Repurchases of stock | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | (6) | (10) |
Cash used in financing activities | (6) | (10) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 |
Net change in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash, end of period | 0 | 0 |
DCL | Reportable Legal Entities | ||
Operating Activities | ||
Cash provided by (used in) operating activities | (39) | (8) |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Investments in and advances to equity investments | (2) | |
Payments for investments | 0 | |
Purchases of property and equipment | (44) | (3) |
Inter-company distributions and other investing activities, net | 8 | 20 |
Cash used in investing activities | (38) | 17 |
Financing Activities | ||
Principal repayments of debt, including discount payment | (453) | |
Borrowings under term loan facilities | 500 | |
Repurchases of stock | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | (115) | 517 |
Cash used in financing activities | 385 | 64 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 |
Net change in cash, cash equivalents, and restricted cash | 308 | 73 |
Cash, cash equivalents, and restricted cash, beginning of period | 801 | 61 |
Cash, cash equivalents, and restricted cash, end of period | 1,109 | 134 |
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | ||
Operating Activities | ||
Cash provided by (used in) operating activities | (12) | (22) |
Investing Activities | ||
Business acquisitions, net of cash acquired | (22) | |
Investments in and advances to equity investments | (39) | |
Payments for investments | (34) | |
Purchases of property and equipment | (52) | (33) |
Inter-company distributions and other investing activities, net | 69 | 5 |
Cash used in investing activities | (22) | (84) |
Financing Activities | ||
Principal repayments of debt, including discount payment | 0 | |
Borrowings under term loan facilities | 0 | |
Repurchases of stock | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (2) | (10) |
Inter-company contributions (distributions) and other financing activities, net | (227) | (30) |
Cash used in financing activities | (229) | (40) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (24) | (38) |
Net change in cash, cash equivalents, and restricted cash | (287) | (184) |
Cash, cash equivalents, and restricted cash, beginning of period | 396 | 475 |
Cash, cash equivalents, and restricted cash, end of period | 109 | 291 |
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 332 | 547 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Investments in and advances to equity investments | (1) | |
Payments for investments | 0 | |
Purchases of property and equipment | (9) | (8) |
Inter-company distributions and other investing activities, net | 0 | 1 |
Cash used in investing activities | (10) | (7) |
Financing Activities | ||
Principal repayments of debt, including discount payment | 0 | |
Borrowings under term loan facilities | 0 | |
Repurchases of stock | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (171) | (153) |
Inter-company contributions (distributions) and other financing activities, net | (142) | (440) |
Cash used in financing activities | (313) | (593) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 1 |
Net change in cash, cash equivalents, and restricted cash | 9 | (52) |
Cash, cash equivalents, and restricted cash, beginning of period | 295 | 135 |
Cash, cash equivalents, and restricted cash, end of period | 304 | 83 |
Discovery and Subsidiaries | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 335 | 542 |
Investing Activities | ||
Business acquisitions, net of cash acquired | (22) | |
Investments in and advances to equity investments | (42) | |
Payments for investments | (34) | |
Purchases of property and equipment | (105) | (44) |
Inter-company distributions and other investing activities, net | 77 | 6 |
Cash used in investing activities | (70) | (94) |
Financing Activities | ||
Principal repayments of debt, including discount payment | (453) | |
Borrowings under term loan facilities | 500 | |
Repurchases of stock | (527) | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (173) | (163) |
Inter-company contributions (distributions) and other financing activities, net | (59) | (36) |
Cash used in financing activities | (259) | (652) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (24) | (37) |
Net change in cash, cash equivalents, and restricted cash | (18) | (241) |
Cash, cash equivalents, and restricted cash, beginning of period | 1,552 | 986 |
Cash, cash equivalents, and restricted cash, end of period | $ 1,534 | $ 745 |
Uncategorized Items - disca-202
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |