Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | CBS Corporation | |
Entity Central Index Key | 813,828 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Shares of common stock outstanding | 37,507,526 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Shares of common stock outstanding | 336,787,717 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 3,263 | $ 3,171 | $ 10,490 | $ 9,771 |
Costs and expenses: | ||||
Operating | 1,922 | 1,862 | 6,506 | 5,940 |
Selling, general and administrative | 549 | 525 | 1,605 | 1,520 |
Depreciation and amortization | 56 | 55 | 168 | 166 |
Restructuring and other corporate matters | 46 | 0 | 90 | 0 |
Total costs and expenses | 2,573 | 2,442 | 8,369 | 7,626 |
Operating income (loss) | 690 | 729 | 2,121 | 2,145 |
Interest expense | (115) | (116) | (349) | (336) |
Interest income | 12 | 17 | 43 | 45 |
Loss on early extinguishment of debt | 0 | (5) | 0 | (5) |
Other items, net | (17) | (19) | (52) | (56) |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | 570 | 606 | 1,763 | 1,793 |
Provision for income taxes | (64) | (172) | (312) | (479) |
Equity in loss of investee companies, net of tax | (18) | (16) | (52) | (45) |
Net earnings from continuing operations | 488 | 418 | 1,399 | 1,269 |
Net earnings (loss) from discontinued operations, net of tax | 0 | 174 | 0 | (871) |
Net earnings | $ 488 | $ 592 | $ 1,399 | $ 398 |
Basic net earnings (loss) per common share: | ||||
Basic net earnings from continuing operations (in dollars per share) | $ 1.30 | $ 1.04 | $ 3.70 | $ 3.13 |
Basic net earnings (loss) from discontinued operations (in dollars per share) | 0 | 0.43 | 0 | (2.15) |
Basic net earnings (in dollars per share) | 1.30 | 1.48 | 3.70 | 0.98 |
Diluted net earnings (loss) per common share: | ||||
Diluted net earnings from continuing operations (in dollars per share) | 1.29 | 1.03 | 3.66 | 3.10 |
Diluted net earnings (loss) from discontinued operations (in dollars per share) | 0 | 0.43 | 0 | (2.12) |
Diluted net earnings (in dollars per share) | $ 1.29 | $ 1.46 | $ 3.66 | $ 0.97 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 375 | 401 | 378 | 405 |
Diluted (in shares) | 379 | 406 | 382 | 410 |
Dividends per common share (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.54 | $ 0.54 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 488 | $ 592 | $ 1,399 | $ 398 |
Other comprehensive income, net of tax: | ||||
Cumulative translation adjustments | (3) | 2 | (17) | 4 |
Amortization of net actuarial loss | 15 | 13 | 45 | 37 |
Total other comprehensive income, net of tax | 12 | 15 | 28 | 41 |
Total comprehensive income | $ 500 | $ 607 | $ 1,427 | $ 439 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 182 | $ 285 |
Receivables, less allowances of $48 (2018) and $49 (2017) | 3,697 | 3,697 |
Programming and other inventory | 1,828 | 1,828 |
Prepaid income taxes | 0 | 78 |
Prepaid expenses | 137 | 194 |
Other current assets | 196 | 191 |
Total current assets | 6,040 | 6,273 |
Property and equipment | 3,004 | 3,051 |
Less accumulated depreciation and amortization | 1,782 | 1,771 |
Net property and equipment | 1,222 | 1,280 |
Programming and other inventory | 3,868 | 2,881 |
Goodwill | 4,921 | 4,891 |
Intangible assets | 2,650 | 2,666 |
Other assets | 2,367 | 2,852 |
Total Assets | 21,068 | 20,843 |
Current Liabilities: | ||
Accounts payable | 229 | 231 |
Accrued compensation | 256 | 343 |
Participants’ share and royalties payable | 1,110 | 986 |
Program rights | 406 | 373 |
Income taxes payable | 68 | 0 |
Commercial paper | 374 | 679 |
Current portion of long-term debt | 14 | 19 |
Accrued expenses and other current liabilities | 1,536 | 1,341 |
Total current liabilities | 3,993 | 3,972 |
Long-term debt | 9,465 | 9,464 |
Pension and postretirement benefit obligations | 1,226 | 1,328 |
Deferred income tax liabilities, net | 563 | 480 |
Other liabilities | 3,307 | 3,621 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Common stock | 1 | 1 |
Additional paid-in capital | 43,668 | 43,797 |
Accumulated deficit | (17,762) | (18,900) |
Accumulated other comprehensive income (loss) | (634) | (662) |
Stockholders' equity including treasury stock | 25,273 | 24,236 |
Less treasury stock, at cost; 498 (2018) and 489 (2017) Class B shares | 22,759 | 22,258 |
Total Stockholders’ Equity | 2,514 | 1,978 |
Total Liabilities and Stockholders’ Equity | 21,068 | 20,843 |
Common Class A [Member] | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Common Class B [Member] | ||
Stockholders’ Equity: | ||
Common stock | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for receivables | $ 48 | $ 49 |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 375,000,000 | 375,000,000 |
Common stock, shares issued (in shares) | 38,000,000 | 38,000,000 |
Common Class B [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued (in shares) | 835,000,000 | 834,000,000 |
Treasury stock, at cost, Class B shares (in shares) | 498,000,000 | 489,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activities: | ||
Net earnings | $ 1,399 | $ 398 |
Less: Net loss from discontinued operations, net of tax | 0 | (871) |
Net earnings from continuing operations | 1,399 | 1,269 |
Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities from continuing operations: | ||
Depreciation and amortization | 168 | 166 |
Stock-based compensation | 105 | 129 |
Equity in loss of investee companies, net of tax and distributions | 52 | 45 |
Change in assets and liabilities, net of investing and financing activities | (545) | (674) |
Net cash flow provided by operating activities from continuing operations | 1,179 | 935 |
Net cash flow provided by operating activities from discontinued operations | 1 | 52 |
Net cash flow provided by operating activities | 1,180 | 987 |
Investing Activities: | ||
Investments in and advances to investee companies | (76) | (67) |
Capital expenditures | (99) | (112) |
Acquisitions (including acquired television library) | (29) | (258) |
Proceeds from sale of investments | 0 | 10 |
Proceeds from dispositions | 0 | 11 |
Other investing activities | 8 | 17 |
Net cash flow used for investing activities from continuing operations | (196) | (399) |
Net cash flow used for investing activities from discontinued operations | (23) | (18) |
Net cash flow used for investing activities | (219) | (417) |
Financing Activities: | ||
(Repayments of) proceeds from short-term debt borrowings, net | (305) | 140 |
Proceeds from issuance of senior notes | 0 | 889 |
Repayment of senior notes | 0 | (701) |
Proceeds from debt borrowings of CBS Radio | 0 | 40 |
Repayment of debt borrowings of CBS Radio | 0 | (23) |
Payment of capital lease obligations | (12) | (13) |
Payment of contingent consideration | (5) | (7) |
Dividends | (208) | (224) |
Purchase of Company common stock | (497) | (1,111) |
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (59) | (89) |
Proceeds from exercise of stock options | 23 | 81 |
Other financing activities | (1) | 0 |
Net cash flow (used for) provided by financing activities | (1,064) | (1,018) |
Net decrease in cash and cash equivalents | (103) | (448) |
Cash and cash equivalents at beginning of period (includes $24 (2017) of discontinued operations cash) | 285 | 622 |
Cash and cash equivalents at end of period (includes $30 (2017) of discontinued operations cash) | 182 | 174 |
Continuing Operations [Member] | ||
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 406 | 393 |
Cash (refunded) paid for income taxes | (19) | 321 |
Discontinued Operations [Member] | ||
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 0 | 52 |
Cash (refunded) paid for income taxes | $ (3) | $ 58 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents of discontinued operations | $ 30 | $ 24 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1 ) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business- CBS Corporation (together with its consolidated subsidiaries unless the context otherwise requires, the “Company” or “CBS Corp.”) is comprised of the following segments: Entertainment (CBS Television, comprised of the CBS Television Network, CBS Television Studios, CBS Studios International, and CBS Television Distribution; Network 10; CBS Interactive; and CBS Films), Cable Networks (Showtime Networks, CBS Sports Network and Smithsonian Networks), Publishing (Simon & Schuster) and Local Media (CBS Television Stations and CBS Local Digital Media). Discontinued Operations -On November 16, 2017, the Company completed the disposition of CBS Radio Inc. (“CBS Radio”) through a split-off. CBS Radio has been presented as a discontinued operation in the Company’s consolidated financial statements (See Note 13 ). Basis of Presentation -The accompanying unaudited consolidated financial statements of the Company have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the more detailed financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . In the opinion of management, the accompanying unaudited financial statements reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair statement of the financial position, results of operations and cash flows of the Company for the periods presented. Certain previously reported amounts have been reclassified to conform to the current presentation. Use of Estimates -The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Revenues Advertising Revenues- Advertising revenues are recognized when the advertising spots are aired on television or displayed on digital platforms. If there is a guarantee to deliver a targeted audience rating or number of impressions, the delivery of the advertising spots that achieve the guarantee represents the performance obligation and revenues are recognized based on the proportion of the audience rating or impressions delivered to the total guaranteed in the contract. Audience ratings and impressions are determined based on data provided by independent third-party companies. Advertising contracts, which are generally short-term, are billed monthly, with payments due shortly after the invoice date. Advertising revenues are primarily generated by the Entertainment and Local Media segments. Content Licensing and Distribution Revenues- Content licensing and distribution revenues are generated from the licensing of internally-produced television programming, fees from the distribution of third-party programming, and the publishing and distribution of consumer books. Program Licensing and Distribution For licenses of internally-produced television programming, each individual episode delivered represents a separate performance obligation and revenues are recognized when the episode is made available to the licensee for exhibition and the license period has begun. For license agreements containing multiple deliverables, revenues are allocated based on the relative standalone selling price of each episode of a television series, which is based on licenses for comparable series within the marketplace. Agreements to license programming are often long term, with collection terms ranging from one to five years. The Company also distributes programs on behalf of third parties. In such arrangements, the Company generally obtains control of the program before selling it to the customer. Therefore, revenues from such distribution arrangements, which include both content licensing and advertising revenues, are recognized based on the gross amount of consideration received from the customer, with a participation expense recognized for the fees paid to the third-party producer. Substantially all of the Company’s program licensing and distribution revenues are generated by the Entertainment segment, with the remainder generated by the Cable Networks segment. Publishing Publishing revenues are recognized when merchandise is shipped or electronically delivered to the consumer. Consumer print books are generally sold with a right of return. The Company records a returns reserve and corresponding decrease in revenue at the time of sale based upon historical trends. For publishing revenues, payments are due shortly after shipment or electronic delivery. Affiliate and Subscription Fees- A majority of the Company’s affiliate and subscription fees are generated by the Cable Networks segment and consist of fees received from multichannel video programming distributors (“MVPDs”) for carriage of the Company’s cable networks and subscription fees for the Showtime digital streaming subscription offering. The Entertainment segment generates affiliate and subscription fees primarily from television stations affiliated with the CBS Television Network and subscribers to C BS All Access , its owned streaming subscription service. In addition, the Local Media segment generates retransmission fees from MVPDs for carriage of the Company’s television stations. The performance obligation for the Company’s affiliate agreements is a license to the Company’s programming provided through the continuous delivery of live linear feeds and, for agreements with MVPDs, also includes a license to programming for video on demand viewing. Affiliate and subscription fees are recognized over the term of the agreement as the Company continuously provides its customer with the right to use its programming. For agreements that provide for a variable fee, revenues are determined each month based on an agreed upon contractual rate applied to the number of subscribers to the customer’s service. For agreements that provide for a fixed fee, which primarily include agreements with television stations affiliated with the CBS Television Network (“network affiliates”), revenues are recognized based on the relative fair value of the content provided over the term of the agreement, which is determined based on the fair value of the network affiliate’s service and the value of the Company’s programming. For affiliate and subscription fee revenues, payments are generally due monthly. Noncurrent Receivables- Noncurrent receivables of $1.60 billion and $1.59 billion at September 30, 2018 and January 1, 2018 , respectively, are included in “Other assets” on the Company’s Consolidated Balance Sheets and primarily relate to revenues recognized under long-term television licensing arrangements. Deferred Revenues- Deferred revenues primarily consist of cash received related to advertising arrangements and the licensing of television programming for which the revenues have not yet been earned. Advertising revenues that have been deferred are recognized when the required audience rating or impressions are delivered and revenues deferred under licensing arrangements are recognized when the content is made available to the customer. Deferred revenues are primarily short term and included within “Accrued expenses and other current liabilities” on the Company’s Consolidated Balance Sheets. Total deferred revenues were $259 million and $284 million at September 30, 2018 and January 1, 2018 , respectively. The change in deferred revenue for the nine months ended September 30, 2018 primarily reflects $178 million of revenues recognized that were included in deferred revenues at January 1, 2018 , offset by cash payments received during the period for which the performance obligation was not satisfied prior to the end of the period. Unrecognized Revenues Under Contract- As of September 30, 2018 , unrecognized revenue attributable to unsatisfied performance obligations under the Company’s long-term contracts was $3.41 billion , of which $522 million is expected to be recognized for the remainder of 2018, $1.58 billion for 2019, $771 million for 2020, and $534 million thereafter. These amounts only include contracts subject to a guaranteed fixed amount or the guaranteed minimum under variable contracts. Such amounts change on a regular basis as the Company renews existing agreements or enters into new agreements. Unrecognized revenues under contract disclosed above do not include (i) contracts with an original expected term of one year or less, mainly consisting of the Company’s advertising contracts (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage, mainly consisting of affiliate and subscription fee agreements and (iii) long-term licensing agreements for multiple programs for which the Company’s right to invoice corresponds with the value of the programs provided to the customer. Net Earnings (Loss) per Common Share -Basic net earnings (loss) per share (“EPS”) is based upon net earnings (loss) divided by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the effect of the assumed exercise of stock options and vesting of restricted stock units (“RSUs”) only in the periods in which such effect would have been dilutive. Excluded from the calculation of diluted EPS because their inclusion would have been anti-dilutive, were 7 million stock options for each of the three and nine months ended September 30, 2018 and 4 million stock options for each of the three and nine months ended September 30, 2017 . The table below presents a reconciliation of weighted average shares used in the calculation of basic and diluted EPS. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2018 2017 2018 2017 Weighted average shares for basic EPS 375 401 378 405 Dilutive effect of shares issuable under stock-based compensation plans 4 5 4 5 Weighted average shares for diluted EPS 379 406 382 410 Other Liabilities -Other liabilities consist primarily of the noncurrent portion of residual liabilities of previously disposed businesses, participants’ share and royalties payable, program rights obligations, deferred compensation and other employee benefit accruals. Additional Paid-In Capital -For the nine months ended September 30, 2018 and 2017 , the Company recorded dividends of $206 million and $221 million , respectively, as a reduction to additional paid-in capital as the Company had an accumulated deficit balance. Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers During the first quarter of 2018 , the Company adopted Financial Accounting Standards Board (“FASB”) guidance on the recognition of revenues which provides a single, comprehensive revenue recognition model for all contracts with customers and supersedes most existing revenue recognition guidance. The main principle under this guidance is that an entity should recognize revenue at the amount it expects to be entitled to in exchange for the transfer of goods or services to customers. The Company applied the modified retrospective method of adoption with the cumulative effect of the initial adoption of $261 million reflected as an adjustment to the opening balance of accumulated deficit as of January 1, 2018. Prior periods continue to be presented under previous accounting guidance (See Note 12 ). Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost During the first quarter of 2018 , the Company adopted FASB amended guidance on the presentation of net periodic pension and postretirement benefit cost (“net benefit cost”). This guidance requires the Company to present the service cost component of net benefit cost in the same line items on the statement of operations as other compensation costs of the related employees. All of the other components of net benefit cost are presented in the statement of operations separately from the service cost component and below the subtotal of operating income. As a result of the adoption of this guidance, the Company presented $16 million and $47 million of net benefit costs in “Other items, net” on the Consolidated Statement of Operations for the three and nine months ended September 30, 2018 , respectively, representing the components of net benefit cost other than service cost. This guidance is required to be applied retrospectively and therefore, $22 million and $65 million of expenses, previously presented within operating income, have been reclassified to “Other items, net” for the three and nine months ended September 30, 2017 , respectively. Stock Compensation: Scope of Modification Accounting During the first quarter of 2018 , the Company adopted FASB amended guidance on the accounting for stock-based compensation which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under this guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award as equity or liability changes as a result of the change in the terms or conditions of a share-based payment award. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Clarifying the Definition of a Business During the first quarter of 2018 , the Company adopted FASB amended guidance on the accounting for business combinations which clarifies the definition of a business and assists entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under this guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset (or group of similar assets), the assets acquired would not represent a business. In addition, in order to be considered a business, an acquisition would have to include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. The amended guidance also narrows the definition of outputs by more closely aligning it with how outputs are described in FASB guidance for revenue recognition. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Intra-Entity Transfers of Assets Other than Inventory During the first quarter of 2018 , the Company adopted FASB amended guidance on the accounting for income taxes, which eliminates the exception in existing guidance that defers the recognition of the tax effects of intra-entity asset transfers other than inventory until the transferred asset is sold to a third party. Under this guidance, an entity recognizes the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Accounting Pronouncements Not Yet Adopted Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In August 2018, the FASB issued guidance on the accounting for implementation costs of a cloud computing arrangement that is considered to be a service contract. This guidance requires companies to follow the guidance for capitalizing costs associated with internal-use software to determine which costs to capitalize in a cloud computing arrangement that is a service contract. The guidance also specifies the financial statement presentation for capitalized implementation costs and the related amortization, as well as required financial statement disclosures. The Company is currently evaluating the impact of this guidance, which is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued amended guidance that eliminates, adds and clarifies certain disclosure requirements for defined benefit pension or other postretirement plans. The Company is currently evaluating the impact of this guidance, which is required to be applied retrospectively and is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. Changes to the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued amended guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements. This guidance, which is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted, is not expected to have an impact on the Company’s consolidated financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued amended guidance that permits an entity to reclassify the income tax effects of federal tax legislation enacted in December 2017 (the “Tax Reform Act”) on items within accumulated other comprehensive income to retained earnings. The Company is currently evaluating the impact of this guidance, which is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued amended guidance for hedge accounting, which expands the eligibility of hedging strategies that qualify for hedge accounting, modifies the recognition and presentation of hedges in the financial statements, and changes how companies assess hedge effectiveness. In addition, this guidance amends and expands disclosure requirements. This guidance, which is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted, is not expected to have a material impact on the Company’s consolidated financial statements. Leases In February 2016, the FASB issued new guidance on the accounting for leases, which supersedes previous lease guidance. Under this guidance, for all leases with terms in excess of one year, including operating leases, the Company will be required to recognize on its balance sheet a lease liability and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance retains a distinction between finance leases and operating leases and the classification criteria is substantially similar to previous guidance. Additionally, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed. This guidance is effective for the Company in the first quarter of 2019. The Company is currently reviewing its lease portfolio, evaluating the impact of this guidance on its consolidated balance sheet and is in the process of implementing new lease accounting software for administering its leases under the new guidance. The Company will apply the modified retrospective method of adoption as of January 1, 2019 and comparative periods will continue to be presented under existing lease guidance. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | 2 ) STOCK-BASED COMPENSATION The following table summarizes the Company’s stock-based compensation expense for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 RSUs and PSUs $ 7 $ 38 $ 86 $ 109 Stock options 7 6 19 20 Stock-based compensation expense, before income taxes 14 44 105 129 Related tax benefit (3 ) (17 ) (26 ) (50 ) Stock-based compensation expense, net of tax benefit $ 11 $ 27 $ 79 $ 79 Stock-based compensation expense for the three and nine months ended September 30, 2018 includes forfeitures of $28 million and accelerations of $6 million relating to changes in senior management, which are included in “Restructuring and other corporate matters” on the Consolidated Statements of Operations. During the nine months ended September 30, 2018 , the Company granted 3 million RSUs for CBS Corp. Class B Common Stock with a weighted average per unit grant-date fair value of $53.96 . RSUs granted during the first nine months of 2018 generally vest over a one - to four -year service period. Compensation expense for RSUs is determined based upon the market price of the shares underlying the awards on the date of grant. For certain RSU awards the number of shares an employee earns ranges from 0% to 120% of the target award, based on the outcome of established performance conditions. Compensation expense is recorded based on the probable outcome of the performance conditions. During the nine months ended September 30, 2018 , the Company also granted 2 million stock options with a weighted average exercise price of $54.32 . Stock options granted during the first nine months of 2018 vest over a four -year service period and expire eight years from the date of grant. Compensation expense for stock options is determined based on the grant date fair value of the award calculated using the Black-Scholes options-pricing model. Total unrecognized compensation cost related to unvested RSUs at September 30, 2018 was $201 million , which is expected to be recognized over a weighted average period of 2.5 years . Total unrecognized compensation cost related to unvested stock option awards at September 30, 2018 was $40 million , which is expected to be recognized over a weighted average period of 2.6 years . |
Restructuring and Other Corpora
Restructuring and Other Corporate Matters | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring and Other Corporate Matters | 3 ) RESTRUCTURING AND OTHER CORPORATE MATTERS During the second quarter of 2018 , in a continued effort to reduce its cost structure, the Company initiated restructuring plans across several of its businesses, primarily for the reorganization of certain business operations. As a result, the Company recorded restructuring charges of $25 million , reflecting $17 million of severance costs and $8 million of costs associated with exiting contractual obligations and other related costs. During the year ended December 31, 2017 , the Company recorded restructuring charges of $63 million , reflecting $54 million of severance costs and $9 million of costs associated with exiting contractual obligations and other related costs. During the year ended December 31, 2016 , the Company recorded restructuring charges of $30 million , reflecting $19 million of severance costs and $11 million of costs associated with exiting contractual obligations and other related costs. As of September 30, 2018 , the cumulative settlements for the 2018 , 2017 and 2016 restructuring charges were $67 million , of which $56 million was for severance costs and $11 million was for costs associated with contractual obligations and other related costs. The Company expects to substantially utilize its restructuring reserves by the end of 2019. Balance at 2018 2018 Balance at December 31, 2017 Charges Settlements September 30, 2018 Entertainment $ 45 $ 6 $ (26 ) $ 25 Cable Networks 1 — (1 ) — Publishing 3 1 (2 ) 2 Local Media 14 11 (7 ) 18 Corporate 3 7 (4 ) 6 Total $ 66 $ 25 $ (40 ) $ 51 Balance at 2017 2017 Balance at December 31, 2016 Charges Settlements December 31, 2017 Entertainment $ 17 $ 44 $ (16 ) $ 45 Cable Networks 4 — (3 ) 1 Publishing 1 5 (3 ) 3 Local Media 6 12 (4 ) 14 Corporate 2 2 (1 ) 3 Total $ 30 $ 63 $ (27 ) $ 66 During the three and nine months ended September 30, 2018 , the Company recorded expenses of $46 million and $65 million , respectively, primarily for professional fees related to legal proceedings and the ongoing investigations at the Company. (See Note 14 ). The nine-month period also included professional fees related to the evaluation of a potential combination with Viacom Inc. |
Programming and Other Inventory
Programming and Other Inventory | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Programming and Other Inventory | 4 ) PROGRAMMING AND OTHER INVENTORY At At September 30, 2018 December 31, 2017 Acquired program rights $ 2,373 $ 2,234 Acquired television library 99 99 Internally produced programming: Released 2,481 1,780 In process and other 680 543 Publishing, primarily finished goods 63 53 Total programming and other inventory 5,696 4,709 Less current portion 1,828 1,828 Total noncurrent programming and other inventory $ 3,868 $ 2,881 |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | 5 ) RELATED PARTIES National Amusements, Inc. National Amusements, Inc. (“NAI”) is the controlling stockholder of CBS Corp. and Viacom Inc. Mr. Sumner M. Redstone, the controlling stockholder, chairman of the board of directors and chief executive officer of NAI, is the Chairman Emeritus of CBS Corp. and the Chairman Emeritus of Viacom Inc. In addition, Ms. Shari Redstone, Mr. Sumner M. Redstone’s daughter, is the president and a director of NAI and the vice chair of the Board of Directors of each of CBS Corp. and Viacom Inc. Mr. David R. Andelman was a director of CBS Corp. until his resignation on September 9, 2018. Mr. Andelman serves as a director of NAI. At September 30, 2018 , NAI directly or indirectly owned approximately 79.7% of CBS Corp.’s voting Class A Common Stock, and owned approximately 10.4% of CBS Corp.’s Class A Common Stock and non-voting Class B Common Stock on a combined basis. NAI is controlled by Mr. Redstone through the Sumner M. Redstone National Amusements Trust (the “SMR Trust”), which owns 80% of the voting interest of NAI, and such voting interest of NAI held by the SMR Trust is voted solely by Mr. Redstone until his incapacity or death. The SMR Trust provides that in the event of Mr. Redstone’s death or incapacity, voting control of the NAI voting interest held by the SMR Trust will pass to seven trustees, who will include CBS Corp. director Ms. Shari Redstone. Mr. Andelman also currently serves as a trustee. No member of the Company’s management is a trustee of the SMR Trust. See “Legal Matters” in Note 14 for information regarding recently settled litigation involving the foregoing parties. Viacom Inc. As part of its normal course of business, the Company licenses its television content, leases production facilities and sells advertising spots to various subsidiaries of Viacom Inc. Viacom Inc. also distributes certain of the Company’s television programs in the home entertainment market. The Company’s total revenues from these transactions were $76 million and $38 million for the three months ended September 30, 2018 and 2017 , respectively, and $105 million and $111 million for the nine months ended September 30, 2018 and 2017 , respectively. The Company leases production facilities, licenses feature films and purchases advertising spots from various subsidiaries of Viacom Inc. The total amounts for these transactions were $9 million and $4 million for the three months ended September 30, 2018 and 2017 , respectively, and $21 million and $13 million for the nine months ended September 30, 2018 and 2017 , respectively. The following table presents the amounts due from Viacom Inc. in the normal course of business as reflected on the Company’s Consolidated Balance Sheets. Amounts due to Viacom Inc. were minimal at September 30, 2018 and December 31, 2017 . At At September 30, 2018 December 31, 2017 Receivables $ 40 $ 93 Other assets (Receivables, noncurrent) 25 11 Total amounts due from Viacom $ 65 $ 104 Other Related Parties. The Company has equity interests in two domestic television networks and several international joint ventures for television channels from which the Company earns revenues primarily by selling its television programming. Total revenues earned from sales to these joint ventures were $14 million and $5 million for the three months ended September 30, 2018 and 2017 , respectively and $67 million and $54 million for the nine months ended September 30, 2018 and 2017 , respectively. At September 30, 2018 and December 31, 2017 , total amounts due from these joint ventures were $23 million and $27 million , respectively. The Company, through the normal course of business, is involved in transactions with other related parties that have not been material in any of the periods presented. |
Bank Financing and Debt
Bank Financing and Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Bank Financing and Debt | 6 ) BANK FINANCING AND DEBT The following table sets forth the Company’s debt. At At September 30, 2018 December 31, 2017 Commercial paper $ 374 $ 679 Senior debt (2.30% - 7.875% due 2019 - 2045) (a) 9,433 9,426 Obligations under capital leases 46 57 Total debt 9,853 10,162 Less commercial paper 374 679 Less current portion of long-term debt 14 19 Total long-term debt, net of current portion $ 9,465 $ 9,464 (a) At September 30, 2018 and December 31, 2017 , the senior debt balances included (i) a net unamortized discount of $60 million and $65 million , respectively, (ii) unamortized deferred financing costs of $44 million and $47 million , respectively, and (iii) a decrease in the carrying value of the debt relating to previously settled fair value hedges of $4 million and $3 million , respectively. The face value of the Company’s senior debt was $9.54 billion at both September 30, 2018 and December 31, 2017 . At September 30, 2018 , the Company classified $600 million of debt maturing in August 2019 as long-term debt on the Consolidated Balance Sheet, reflecting its intent and ability to refinance this debt on a long-term basis. Commercial Paper The Company had outstanding commercial paper borrowings under its $2.5 billion commercial paper program of $374 million and $679 million at September 30, 2018 and December 31, 2017 , respectively, each with maturities of less than 90 days. The weighted average interest rate for these borrowings was 2.41% at September 30, 2018 and 1.88% at December 31, 2017 . Credit Facility At September 30, 2018 , the Company had a $2.5 billion revolving credit facility (the “Credit Facility”) which expires in June 2021 . The Credit Facility requires the Company to maintain a maximum Consolidated Leverage Ratio of 4.5x at the end of each quarter as further described in the Credit Facility. At September 30, 2018 , the Company’s Consolidated Leverage Ratio was approximately 3.0x . The Consolidated Leverage Ratio is the ratio of the Company’s indebtedness from continuing operations, adjusted to exclude certain capital lease obligations, at the end of a quarter, to the Company’s Consolidated EBITDA for the trailing four consecutive quarters. Consolidated EBITDA is defined in the Credit Facility as operating income plus interest income and before depreciation, amortization and certain other noncash items. The Credit Facility is used for general corporate purposes. At September 30, 2018 , the Company had no borrowings outstanding under the Credit Facility and the remaining availability under the Credit Facility, net of outstanding letters of credit, was $2.49 billion . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | 7 ) PENSION AND OTHER POSTRETIREMENT BENEFITS The components of net periodic cost for the Company’s pension and postretirement benefit plans were as follows: Pension Benefits Postretirement Benefits Three Months Ended September 30, 2018 2017 2018 2017 Components of net periodic cost: Service cost $ 7 $ 7 $ — $ — Interest cost 38 48 3 4 Expected return on plan assets (45 ) (50 ) — — Amortization of actuarial loss (gain) (a) 24 26 (4 ) (5 ) Net periodic cost $ 24 $ 31 $ (1 ) $ (1 ) Pension Benefits Postretirement Benefits Nine Months Ended September 30, 2018 2017 2018 2017 Components of net periodic cost: Service cost $ 23 $ 22 $ — $ — Interest cost 112 143 11 13 Expected return on plan assets (135 ) (151 ) — — Amortization of actuarial loss (gain) (a) 72 77 (13 ) (16 ) Net periodic cost $ 72 $ 91 $ (2 ) $ (3 ) (a) Reflects amounts reclassified from accumulated other comprehensive loss to net earnings. The service cost component of net periodic cost is presented on the Consolidated Statements of Operations within operating income and all other components of net periodic cost are presented within “Other items, net.” |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 8 ) STOCKHOLDERS’ EQUITY During the third quarter of 2018 , the Company repurchased 1.8 million shares of its Class B Common Stock under its share repurchase program for $100 million , at an average cost of $55.13 per share. During the nine months ended September 30, 2018 , the Company repurchased 9.4 million shares of its Class B Common Stock for $500 million , at an average cost of $52.94 per share, leaving $2.56 billion of authorization at September 30, 2018 . During the third quarter of 2018 , the Company declared a quarterly cash dividend of $.18 per share on its Class A and Class B Common Stock, resulting in total dividends of $68 million , which were paid on October 1, 2018 . During the nine months ended September 30, 2018 , the Company declared total per share cash dividends of $.54 on its Class A and Class B Common Stock, resulting in total dividends of $206 million . On May 17, 2018 , the Company’s Board of Directors voted 11 to 3 in favor of a pro rata dividend of 0.5687 of a share of the Company’s voting Class A Common Stock for each share of the Company’s Class A Common Stock and non-voting Class B Common Stock to stockholders of record as of the close of business on the record date and conditioned the issuance of such dividend on Delaware court approval (the “May 2018 Stock Dividend”). In connection with the settlement agreement involving legal proceedings in the Delaware Court of Chancery, on September 9, 2018, the Board rescinded the May 2018 Stock Dividend. See “Legal Matters” in Note 14 for related information. Accumulated Other Comprehensive Income (Loss) The following tables summarize the changes in the components of accumulated other comprehensive loss. Cumulative Translation Adjustments Net Actuarial Loss and Prior Service Cost Accumulated Other Comprehensive Loss At December 31, 2017 $ 159 $ (821 ) $ (662 ) Other comprehensive loss before reclassifications (17 ) — (17 ) Reclassifications to net earnings — 45 (a) 45 Net other comprehensive income (loss) (17 ) 45 28 At September 30, 2018 $ 142 $ (776 ) $ (634 ) Cumulative Translation Adjustments Net Actuarial Loss and Prior Service Cost Accumulated Other Comprehensive Loss At December 31, 2016 $ 151 $ (918 ) $ (767 ) Other comprehensive income before reclassifications 4 — 4 Reclassifications to net earnings — 37 (a) 37 Net other comprehensive income 4 37 41 At September 30, 2017 $ 155 $ (881 ) $ (726 ) (a) Reflects amortization of net actuarial losses. See Note 7 . The net actuarial losses related to pension and other postretirement benefit plans included in other comprehensive income are net of tax provisions of $14 million and $24 million for the nine months ended September 30, 2018 and 2017 , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9 ) INCOME TAXES The provision for income taxes represents federal, state and local, and foreign income taxes on earnings from continuing operations before income taxes and equity in loss of investee companies. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Provision for income taxes, including interest and before other discrete items (a) $ 120 $ 187 $ 370 $ 548 Impact of tax law changes (b) (54 ) — (54 ) — Excess tax benefits from stock-based compensation (c) — (10 ) — (41 ) Other discrete items (d) (2 ) (5 ) (4 ) (28 ) Provision for income taxes $ 64 $ 172 $ 312 $ 479 Effective income tax rate 11.2 % 28.4 % 17.7 % 26.7 % (a) The lower tax provision for the three and nine months ended September 30, 2018 primarily reflects a reduction in the federal corporate income tax rate from 35% to 21% as a result of the enactment of new federal tax legislation in December 2017 (the “Tax Reform Act”). (b) During the third quarter of 2018 , in connection with the preparation of its 2017 federal tax return, the Company elected to utilize a federal tax law provision that was retroactively renewed in 2018. This tax law provision allowed the Company to immediately expense certain qualified production costs on its 2017 tax return. As a result, during the third quarter of 2018 , the Company established a deferred tax liability associated with this deduction at the 2017 federal tax rate of 35%, and concurrently recorded a net tax benefit of $69 million , primarily reflecting the re-measurement of this deferred tax liability at the reduced federal corporate tax rate of 21% under the Tax Reform Act. This benefit was partially offset by a charge of $15 million to adjust the provisional amount of transition tax on cumulative foreign earnings and profits that resulted from the enactment of the Tax Reform Act in 2017. See discussion below. (c) Reflects the difference between the tax benefit from stock-based compensation expense and the deduction on the tax return associated with the exercise of stock options and vesting of RSUs. This difference occurs because stock-based compensation expense is recorded based on the grant-date fair value of the award, whereas the tax deduction is based on the fair value on the date the stock option is exercised or the RSU vests. (d) For the nine months ended September 30, 2017 , primarily reflects tax benefits from the resolution of certain state income tax matters. In December 2017, the U.S. government enacted the Tax Reform Act containing significant changes to U.S. federal tax law, including a reduction in the federal corporate tax rate from 35% to 21% and a one-time transition tax on cumulative foreign earnings and profits. For the year ended December 31, 2017, the Company recorded a net provisional charge of $129 million , reflecting the estimated transition tax of $407 million on cumulative foreign earnings and profits, offset by an estimated benefit of $278 million to adjust the Company’s deferred income tax balances as a result of the reduced corporate income tax rate. The Tax Reform Act also includes a deduction for foreign derived intangible income and a tax on global intangible low-taxed income (“GILTI”), which imposes a U.S. tax on certain income earned by the Company’s foreign subsidiaries. The Company included the tax on GILTI in its tax provision for the three and nine months ended September 30, 2018 . During the third quarter of 2018 , the Company recorded a charge of $15 million to adjust the provisional amount of transition tax on cumulative foreign earnings and profits. The Company will complete its analysis of the Tax Reform Act within one year from its enactment. Such analysis will include finalizing and recording any additional adjustments to provisional estimates, as well as determining whether to treat the tax on GILTI as a period cost when incurred or as a component of deferred taxes. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 10 ) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The Company’s carrying value of financial instruments approximates fair value, except for notes and debentures, which are not recorded at fair value. At September 30, 2018 and December 31, 2017 , the carrying value of the Company’s senior debt was $9.43 billion and the fair value, which is estimated based on quoted market prices for similar liabilities (Level 2) and includes accrued interest, was $9.57 billion and $10.16 billion , respectively. The Company uses derivative financial instruments primarily to modify its exposure to market risks from fluctuations in foreign currency exchange rates. The Company does not use derivative instruments unless there is an underlying exposure and, therefore, the Company does not hold or enter into derivative financial instruments for speculative trading purposes. Foreign Exchange Contracts Foreign exchange forward contracts have principally been used to hedge projected cash flows, in currencies such as the British Pound, the Euro, the Canadian Dollar and the Australian Dollar, generally for periods up to 24 months. The Company designates forward contracts used to hedge committed and forecasted foreign currency transactions as cash flow hedges. Gains or losses on the effective portion of designated cash flow hedges are initially recorded in other comprehensive income and reclassified to the statement of operations when the hedged item is recognized. Additionally, the Company enters into non-designated forward contracts to hedge non-U.S. dollar denominated cash flows. At September 30, 2018 and December 31, 2017 , the notional amount of all foreign exchange contracts was $391 million and $410 million , respectively. Gains (losses) recognized on derivative financial instruments were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Financial Statement Account Non-designated foreign exchange contracts $ — $ (9 ) $ 13 $ (29 ) Other items, net The fair value of the Company’s derivative instruments was not material to the Consolidated Balance Sheets for any of the periods presented. The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 . These assets and liabilities have been categorized according to the three-level fair value hierarchy established by the FASB, which prioritizes the inputs used in measuring fair value. Level 1 is based on publicly quoted prices for the asset or liability in active markets. Level 2 is based on inputs that are observable other than quoted market prices in active markets, such as quoted prices for the asset or liability in inactive markets or quoted prices for similar assets or liabilities. Level 3 is based on unobservable inputs reflecting the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. At September 30, 2018 Level 1 Level 2 Level 3 Total Assets: Foreign currency hedges $ — $ 9 $ — $ 9 Total Assets $ — $ 9 $ — $ 9 Liabilities: Deferred compensation $ — $ 375 $ — $ 375 Foreign currency hedges — 1 — 1 Total Liabilities $ — $ 376 $ — $ 376 At December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Foreign currency hedges $ — $ 5 $ — $ 5 Total Assets $ — $ 5 $ — $ 5 Liabilities: Deferred compensation $ — $ 363 $ — $ 363 Foreign currency hedges — 10 — 10 Total Liabilities $ — $ 373 $ — $ 373 The fair value of foreign currency hedges is determined based on the present value of future cash flows using observable inputs including foreign currency exchange rates. The fair value of deferred compensation liabilities is determined based on the fair value of the investments elected by employees. |
Segment and Revenue Information
Segment and Revenue Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment and Revenue Information | 11 ) SEGMENT AND REVENUE INFORMATION The following tables set forth the Company’s financial information by reportable segment. The Company’s operating segments, which are the same as its reportable segments, have been determined in accordance with the Company’s internal management structure, which is organized based upon products and services. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues: Entertainment $ 2,151 $ 1,815 $ 7,232 $ 6,346 Cable Networks 569 840 1,769 1,954 Publishing 240 228 607 595 Local Media 434 397 1,269 1,218 Corporate/Eliminations (131 ) (109 ) (387 ) (342 ) Total Revenues $ 3,263 $ 3,171 $ 10,490 $ 9,771 Revenues generated between segments primarily reflect advertising sales, content licensing and station affiliation fees. These transactions are recorded at market value as if the sales were to third parties and are eliminated in consolidation. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Intercompany Revenues: Entertainment $ 135 $ 111 $ 394 $ 348 Cable Networks 2 — 2 — Local Media 3 4 13 10 Total Intercompany Revenues $ 140 $ 115 $ 409 $ 358 The Company presents operating income (loss) excluding costs for restructuring and other corporate matters, where applicable, (“Segment Operating Income”) as the primary measure of profit and loss for its operating segments in accordance with FASB guidance for segment reporting. The Company believes the presentation of Segment Operating Income is relevant and useful for investors because it allows investors to view segment performance in a manner similar to the primary method used by the Company’s management and enhances their ability to understand the Company’s operating performance. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Segment Operating Income (Loss): Entertainment $ 377 $ 350 $ 1,225 $ 1,104 Cable Networks 248 296 734 801 Publishing 51 47 98 91 Local Media 124 106 370 358 Corporate (64 ) (70 ) (216 ) (209 ) Restructuring and other corporate matters (46 ) — (90 ) — Operating income 690 729 2,121 2,145 Interest expense (115 ) (116 ) (349 ) (336 ) Interest income 12 17 43 45 Loss on early extinguishment of debt — (5 ) — (5 ) Other items, net (17 ) (19 ) (52 ) (56 ) Earnings from continuing operations before income taxes and equity in loss of investee companies 570 606 1,763 1,793 Provision for income taxes (64 ) (172 ) (312 ) (479 ) Equity in loss of investee companies, net of tax (18 ) (16 ) (52 ) (45 ) Net earnings from continuing operations 488 418 1,399 1,269 Net earnings (loss) from discontinued operations, net of tax — 174 — (871 ) Net earnings $ 488 $ 592 $ 1,399 $ 398 Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Depreciation and Amortization: Entertainment $ 31 $ 29 $ 92 $ 85 Cable Networks 5 5 16 17 Publishing 1 2 4 5 Local Media 11 11 33 34 Corporate 8 8 23 25 Total Depreciation and Amortization $ 56 $ 55 $ 168 $ 166 Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Stock-based Compensation: Entertainment $ 17 $ 16 $ 48 $ 48 Cable Networks 4 3 10 9 Publishing 1 1 3 3 Local Media 3 3 9 9 Corporate (a) (11 ) 21 35 60 Total Stock-based Compensation $ 14 $ 44 $ 105 $ 129 (a) Included in the three and nine months ended September 30, 2018 are forfeitures of $28 million and accelerations of $6 million relating to changes in senior management. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Capital Expenditures: Entertainment $ 19 $ 25 $ 56 $ 63 Cable Networks 5 5 12 12 Publishing 2 1 4 2 Local Media 6 8 15 20 Corporate 5 5 12 15 Total Capital Expenditures $ 37 $ 44 $ 99 $ 112 At At September 30, 2018 December 31, 2017 Assets: Entertainment $ 12,763 $ 12,626 Cable Networks 3,008 2,878 Publishing 1,047 906 Local Media 3,996 4,042 Corporate/Eliminations 242 378 Discontinued operations 12 13 Total Assets $ 21,068 $ 20,843 The following table presents the Company’s revenues disaggregated into categories based on the nature of such revenues. Three Months Ended Nine Months Ended September 30, September 30, Revenues by Type 2018 2017 2018 2017 Advertising $ 1,263 $ 1,106 $ 4,323 $ 4,008 Content licensing and distribution: Programming 693 632 2,417 2,166 Publishing 240 228 607 595 Affiliate and subscription fees 1,008 1,145 2,976 2,835 Other 59 60 167 167 Total Revenues $ 3,263 $ 3,171 $ 10,490 $ 9,771 |
Adoption of "Revenue From Contr
Adoption of "Revenue From Contracts With Customers" | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Adoption of Revenue From Contracts With Customers | 12 ) ADOPTION OF “REVENUE FROM CONTRACTS WITH CUSTOMERS” On January 1, 2018, the Company adopted FASB Accounting Standards Codification 606 (“ASC 606”) on the recognition of revenues using the modified retrospective method applied to all contracts. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 while prior periods have not been adjusted. The Company recorded an increase to accumulated deficit of $261 million as of January 1, 2018 reflecting the cumulative impact of the adoption of ASC 606. The adoption of ASC 606 primarily resulted in two changes to the Company’s revenue recognition policies. • Revenues from Distribution Arrangements Revenues from the Company’s distribution of third-party content are now recognized based on the gross amount of consideration received from the customer, with an offsetting participation expense recognized for the fees paid to the third party. Under previous accounting guidance, such revenues, which include content licensing and distribution revenues and advertising revenues, were recognized at the net amount retained by the Company after the payment of fees to the third party. For the three and nine months ended September 30, 2018 , respectively, revenues and operating expenses relating to such distribution arrangements were each $93 million and $217 million higher under ASC 606 than the amounts that would have been reported under previous accounting guidance, with no impact to operating income. • Revenues from the Renewal of Licensing Agreements Revenues associated with the renewal of an existing license agreement are now recognized at the beginning of the renewal period. Under previous accounting guidance, these revenues were recognized upon the execution of such renewal. Content licensing and distribution revenue comparisons will continue to be impacted by fluctuations resulting from the timing of when Company-owned television series are made available for multiyear licensing agreements. Therefore, this change is not expected to have a material impact on the trend of the Company’s financial results. Additionally, historically, on an annual basis, revenues from renewals executed each year have approximated revenues associated with renewal periods that began in the same year. The following table presents the amount by which each applicable financial statement line item on the Consolidated Statement of Operations would have decreased for the three and nine months ended September 30, 2018 if license renewals were recognized under previous accounting guidance. Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Revenues $ 41 $ 182 Operating expenses 19 82 Operating income 22 100 Less: Provision for income taxes 5 21 Net earnings from continuing operations $ 17 $ 79 Diluted EPS from continuing operations $ .04 $ .21 In addition, the adoption of ASC 606 resulted in certain classification changes on the Consolidated Balance Sheet. The primary change is the reclassification of the sales returns reserve relating to the publishing business to “Other current liabilities.” Such amount, which was $116 million at September 30, 2018 , was previously presented as a reduction to receivables. The following table presents the amount by which each applicable financial statement line item on the Consolidated Balance Sheet at September 30, 2018 would increase (decrease) if all of the above changes resulting from the adoption of ASC 606 were presented under previous accounting guidance. Assets Receivables, net $ (89 ) Programming and other inventory (noncurrent) $ (45 ) Other assets (noncurrent receivables) $ 386 Liabilities Other current liabilities $ (141 ) Deferred income tax liabilities, net $ 46 Participants’ share and royalties payable $ 165 Accumulated deficit $ 182 ASC 606 also requires enhanced disclosures relating to the Company’s revenues from contracts with customers (See Note 1 ), including the disaggregation of revenues into categories (See Note 11 ). |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 13 ) DISCONTINUED OPERATIONS On November 16, 2017 , the Company completed the split-off of CBS Radio through an exchange offer, in which the Company accepted 17.9 million shares of CBS Corp. Class B Common Stock from its stockholders in exchange for the 101.4 million shares of CBS Radio common stock that it owned. Immediately following the exchange offer, each share of CBS Radio common stock was converted into one share of Entercom Communications Corp. (“Entercom”) Class A common stock upon completion of the merger. The following table sets forth details of net earnings (loss) from discontinued operations for the three and nine months ended September 30, 2017 . Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Revenues $ 300 $ 856 Costs and expenses: Operating 113 307 Selling, general and administrative 120 370 Market value adjustment (a) (100 ) 980 Restructuring charges (b) — 7 Total costs and expenses 133 1,664 Operating income (loss) 167 (808 ) Interest expense (21 ) (60 ) Other items, net — (1 ) Earnings (loss) from discontinued operations 146 (869 ) Income tax (provision) benefit (c) 28 (2 ) Net earnings (loss) from discontinued operations, net of tax $ 174 $ (871 ) (a) During 2017, prior to its split-off, CBS Radio was measured each reporting period at the lower of its carrying amount or fair value less cost to sell. The value of the transaction with Entercom was determined based on Entercom’s stock price at the closing of the transaction and therefore, the Company recorded a market value adjustment to adjust the carrying value of CBS Radio to the value indicated by the stock valuation of Entercom. (b) Reflects restructuring charges associated with the reorganization of certain business operations, including severance costs and costs associated with exiting contractual obligations. (c) Included in the three and nine months ended September 30, 2017 is a tax benefit of $45 million from the resolution of a tax matter in a foreign jurisdiction relating to a previously disposed business. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14 ) COMMITMENTS AND CONTINGENCIES Guarantees The Company has indemnification obligations with respect to letters of credit and surety bonds primarily used as security against non-performance in the normal course of business. At September 30, 2018 , the outstanding letters of credit and surety bonds approximated $107 million and were not recorded on the Consolidated Balance Sheet. In the course of its business, the Company both provides and receives indemnities which are intended to allocate certain risks associated with business transactions. Similarly, the Company may remain contingently liable for various obligations of a business that has been divested in the event that a third party does not live up to its obligations under an indemnification obligation. The Company records a liability for its indemnification obligations and other contingent liabilities when probable and reasonably estimable. Legal Matters General. On an ongoing basis, the Company vigorously defends itself in numerous lawsuits and proceedings and responds to various investigations and inquiries from federal, state, local and international authorities (collectively, “litigation’’). Litigation may be brought against the Company without merit, is inherently uncertain and always difficult to predict. However, based on its understanding and evaluation of the relevant facts and circumstances, the Company believes that the below-described legal matters and other litigation to which it is a party are not likely, in the aggregate, to have a material adverse effect on its results of operations, financial position or cash flows. Under the separation agreement between the Company and Viacom Inc., the Company and Viacom Inc. have agreed to defend and indemnify the other in certain litigation in which the Company and/or Viacom Inc. is named. Litigation Settled in September 2018 Involving the Company and Its Controlling Stockholder, National Amusements, Inc., Among Others, in the Delaware Court of Chancery. On May 14, 2018, the Company and certain of the independent directors of the Company’s Board of Directors (the “Board”) filed a lawsuit in the Delaware Court of Chancery against NAI, Ms. Shari Redstone, Mr. Sumner M. Redstone, NAI Entertainment Holdings LLC (“NAIEH”) and the Sumner M. Redstone National Amusements Trust (the “SMR Trust”) (collectively, the “NAI Parties”). The verified complaint, as amended on May 23, 2018, alleged, among other things, that NAI, Mr. Sumner M. Redstone and Ms. Shari Redstone had breached their fiduciary duties to the Company’s stockholders by abusing their control to threaten the independent corporate governance of the Company. The amended verified complaint sought a declaration that the May 2018 Stock Dividend (as defined below) was valid and permissible, a declaration that the Bylaw Amendments (as defined below) were invalid or were ineffective as of May 17, 2018 and an injunction against any action by any of the NAI Parties to interfere with the composition of the Board or to modify the Company’s governance documents before the issuance of any shares pursuant to the May 2018 Stock Dividend. On May 16, 2018, each of NAI and NAIEH delivered to the Company a written consent to amend (the “Bylaw Amendments”) the Company’s amended and restated bylaws (the “Bylaws”). On May 17, 2018 , the Board voted 11 to 3 in favor of a pro rata dividend of 0.5687 of a share of the Company’s voting Class A Common Stock for each share of the Company's Class A Common Stock and non-voting Class B Common Stock to stockholders of record as of the close of business on the record date and conditioned the issuance of such dividend on Delaware court approval (the “May 2018 Stock Dividend”). On May 29, 2018, NAI, NAIEH and Ms. Shari Redstone filed a lawsuit in the Delaware Court of Chancery against the Company and certain of the Company’s directors. NAI’s verified complaint, as amended on June 25, 2018 and July 27, 2018, alleged, among other things, that the May 2018 Stock Dividend violated the Company’s bylaws and certificate of incorporation, and that the directors named as defendants had breached their fiduciary duties in approving the May 2018 Stock Dividend. The amended verified complaint sought a declaration that the Bylaw Amendments were valid, a declaration that the May 2018 Stock Dividend was invalid, an injunction against issuance and payment of the May 2018 Stock Dividend and any action by the defendants to carry out the May 2018 Stock Dividend, and other relief. On June 7, 2018, the Court consolidated the aforementioned lawsuits under the consolidated action captioned In re CBS Corporation Litigation , Consol. C.A. No. 2018-0342-AGB (Del. Ch.) (the “consolidated action”). On May 31, 2018, Westmoreland County Employees’ Retirement System (“Westmoreland”), a purported beneficial owner of the Company’s Class B Common Stock, filed a class action complaint in the Delaware Court of Chancery against NAI, NAIEH, Mr. David R. Andelman, Mr. Robert N. Klieger and Ms. Shari Redstone (the “Westmoreland lawsuit”), which alleged breaches of contractual obligations, implied obligations and fiduciary duties to the Company’s Class B Common Stock holders in connection with the Bylaw Amendments and interference with the issuance by the Board of the May 2018 Stock Dividend. Westmoreland’s complaint sought a declaratory judgment that the Company’s certificate of incorporation authorized the May 2018 Stock Dividend, that Westmoreland and the class were entitled to the May 2018 Stock Dividend, and that the Bylaw Amendments were invalid, as well as other relief. On September 14, 2018, the Delaware Court of Chancery entered a stipulation agreed to by the parties whereby the Westmoreland lawsuit was dismissed without prejudice as moot and the Court retained jurisdiction to consider any application for attorneys’ fees and expenses submitted by Westmoreland or its counsel. On September 9, 2018, the Company entered into a settlement and release agreement (the “Settlement Agreement”) with NAI, NAIEH, the SMR Trust, Mr. Sumner M. Redstone, Ms. Shari Redstone and the other then members of the Board, among other parties. Pursuant to the Settlement Agreement, among other matters, the parties dismissed with prejudice all claims in the consolidated action. The Settlement Agreement includes mutual releases and covenants not to sue among the parties with respect to NAI’s and NAIEH’s investment in the Company, including the claims asserted in such action, subject to certain exceptions, and the Company has agreed to indemnify, and reimburse expenses of, certain parties, on the terms set forth in the Settlement Agreement, including with respect to the consolidated action and the defendants in the Westmoreland lawsuit. In connection with the Settlement Agreement, the Board rescinded the May 2018 Stock Dividend. In addition, NAI and NAIEH took action by written consent to amend the Company’s amended and restated bylaws. Investigations and Related Matters . As announced on August 1, 2018, the Board has retained two law firms to conduct a full investigation of the allegations in recent press reports about the Company’s former Chairman of the Board, President and Chief Executive Officer, Mr. Leslie Moonves, CBS News and cultural issues at all levels of the Company. This investigation is ongoing. The Company has received subpoenas from the New York County District Attorney’s Office and the New York City Commission on Human Rights regarding the subject matter of this investigation and related matters. The New York State Attorney General’s Office has also requested information about these matters. The Company may receive additional related regulatory and investigative inquiries from these and other entities in the future. The Company is cooperating with the ongoing investigation and related inquiries. On August 27, 2018, Gene Samit, individually and on behalf of others similarly situated, filed a putative class action suit in the United States District Court for the Southern District of New York against the Company, its former Chairman of the Board, President and Chief Executive Officer and its then Chief Operating Officer, who has been appointed as the Company’s President and Acting Chief Executive Officer. This action is stated to be on behalf of a class of persons who acquired the Company’s securities between February 14, 2014 and July 27, 2018. This action seeks to recover damages arising during this time period allegedly caused by the defendants’ purported violations of the federal securities laws by allegedly making materially false and misleading statements or failing to disclose material information, as well as costs and expenses, and seeks remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder. On October 1, 2018, John Lantz, individually and on behalf of others similarly situated, filed a putative class action suit in the United States District Court for the Southern District of New York against the Company, certain current and former senior executives and the members of the Board immediately prior to September 9, 2018. This action is stated to be on behalf of purchasers of the Company’s Class A Common Stock and Class B Common Stock between November 3, 2017 and July 27, 2018. This action seeks to recover damages arising during this time period allegedly caused by the defendants’ purported violations of the federal securities laws by allegedly making materially false and misleading statements or failing to disclose material information, as well as costs and expenses, and seeks remedies under Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. Separation Agreement . On September 9, 2018, the Company entered into a separation and settlement agreement and releases (the “Separation Agreement”) with Mr. Leslie Moonves, pursuant to which Mr. Moonves resigned as a director and as Chairman of the Board, President and Chief Executive Officer of the Company. Pursuant to the Separation Agreement, the Company will contribute the aggregate amount of $20 million to one or more charitable organizations that support the #MeToo movement and equality for women in the workplace, which organizations are mutually agreed by the Company and Mr. Moonves. The Company has recorded the contribution of $20 million in “Restructuring and other corporate matters” on the Consolidated Statements of Operations for the three and nine months ended September 30, 2018 . In October 2018, the Company also contributed $120 million to a grantor trust. In the event the Board determines that the Company is entitled to terminate Mr. Moonves’s employment for cause under his employment agreement and Mr. Moonves does not demand arbitration with respect to such determination, the assets of the grantor trust will be distributed to the Company and the Company will have no further obligations to Mr. Moonves. Any dispute related to the Board’s determination is subject to binding arbitration as set forth in the Separation Agreement. In the event of arbitration, the assets of the grantor trust will also be distributed to the Company upon a final determination in the arbitration that the Company was entitled to terminate Mr. Moonves’s employment for cause. The Board will make a determination whether the Company has grounds to terminate the employment of Mr. Moonves for cause under his employment agreement within thirty days following completion of the final report of the independent investigators in the ongoing internal investigation described above, but in no event later than January 31, 2019. In the event that the Board determines that the Company is not entitled to terminate Mr. Moonves’s employment for cause, or in the event of a final determination in arbitration that the Company is not entitled to terminate Mr. Moonves’s employment for cause, the assets of the grantor trust will be distributed to Mr. Moonves. The Company is currently unable to determine the amount of any such contingent distribution to Mr. Moonves and, accordingly, no accrual has been made in the Company’s consolidated financial statements. Claims Related to Former Businesses: Asbestos. The Company is a defendant in lawsuits claiming various personal injuries related to asbestos and other materials, which allegedly occurred as a result of exposure caused by various products manufactured by Westinghouse, a predecessor, generally prior to the early 1970s. Westinghouse was neither a producer nor a manufacturer of asbestos. The Company is typically named as one of a large number of defendants in both state and federal cases. In the majority of asbestos lawsuits, the plaintiffs have not identified which of the Company’s products is the basis of a claim. Claims against the Company in which a product has been identified principally relate to exposures allegedly caused by asbestos-containing insulating material in turbines sold for power-generation, industrial and marine use. Claims are frequently filed and/or settled in groups, which may make the amount and timing of settlements, and the number of pending claims, subject to significant fluctuation from period to period. The Company does not report as pending those claims on inactive, stayed, deferred or similar dockets which some jurisdictions have established for claimants who allege minimal or no impairment. As of September 30, 2018 , the Company had pending approximately 31,500 asbestos claims, as compared with approximately 31,660 as of December 31, 2017 and 32,760 as of September 30, 2017 . During the third quarter of 2018 , the Company received approximately 770 new claims and closed or moved to an inactive docket approximately 1,020 claims. The Company reports claims as closed when it becomes aware that a dismissal order has been entered by a court or when the Company has reached agreement with the claimants on the material terms of a settlement. Settlement costs depend on the seriousness of the injuries that form the basis of the claims, the quality of evidence supporting the claims and other factors. The Company’s total costs for the years 2017 and 2016 for settlement and defense of asbestos claims after insurance recoveries and net of tax were approximately $57 million and $48 million , respectively. The Company’s costs for settlement and defense of asbestos claims may vary year to year and insurance proceeds are not always recovered in the same period as the insured portion of the expenses. The Company believes that its reserves and insurance are adequate to cover its asbestos liabilities. This belief is based upon many factors and assumptions, including the number of outstanding claims, estimated average cost per claim, the breakdown of claims by disease type, historic claim filings, costs per claim of resolution and the filing of new claims. While the number of asbestos claims filed against the Company has remained generally flat in recent years, it is difficult to predict future asbestos liabilities, as events and circumstances may occur including, among others, the number and types of claims and average cost to resolve such claims, which could affect the Company’s estimate of its asbestos liabilities. Other. The Company from time to time receives claims from federal and state environmental regulatory agencies and other entities asserting that it is or may be liable for environmental cleanup costs and related damages principally relating to historical and predecessor operations of the Company. In addition, the Company from time to time receives personal injury claims including toxic tort and product liability claims (other than asbestos) arising from historical operations of the Company and its predecessors. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | 15 ) CONDENSED CONSOLIDATING FINANCIAL STATEMENTS CBS Operations Inc. is a wholly owned subsidiary of the Company. CBS Operations Inc. has fully and unconditionally guaranteed CBS Corp.’s senior debt securities. The following condensed consolidating financial statements present the results of operations, financial position and cash flows of CBS Corp., CBS Operations Inc., the direct and indirect Non-Guarantor Affiliates of CBS Corp. and CBS Operations Inc., and the eliminations necessary to arrive at the information for the Company on a consolidated basis. Statement of Operations For the Three Months Ended September 30, 2018 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Revenues $ 47 $ 2 $ 3,214 $ — $ 3,263 Costs and expenses: Operating 25 1 1,896 — 1,922 Selling, general and administrative 11 58 480 — 549 Depreciation and amortization 1 5 50 — 56 Restructuring and other corporate matters — 46 — — 46 Total costs and expenses 37 110 2,426 — 2,573 Operating income (loss) 10 (108 ) 788 — 690 Interest (expense) income, net (133 ) (130 ) 160 — (103 ) Other items, net (7 ) (4 ) (6 ) — (17 ) Earnings (loss) before income taxes and equity in earnings (loss) of investee companies (130 ) (242 ) 942 — 570 Benefit (provision) for income taxes 27 50 (141 ) — (64 ) Equity in earnings (loss) of investee companies, net of tax 591 410 (18 ) (1,001 ) (18 ) Net earnings $ 488 $ 218 $ 783 $ (1,001 ) $ 488 Total comprehensive income $ 500 $ 219 $ 781 $ (1,000 ) $ 500 Statement of Operations For the Nine Months Ended September 30, 2018 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Revenues $ 134 $ 7 $ 10,349 $ — $ 10,490 Costs and expenses: Operating 73 3 6,430 — 6,506 Selling, general and administrative 36 190 1,379 — 1,605 Depreciation and amortization 3 16 149 — 168 Restructuring and other corporate matters — 71 19 — 90 Total costs and expenses 112 280 7,977 — 8,369 Operating income (loss) 22 (273 ) 2,372 — 2,121 Interest (expense) income, net (396 ) (378 ) 468 — (306 ) Other items, net (23 ) 8 (37 ) — (52 ) Earnings (loss) before income taxes and equity in earnings (loss) of investee companies (397 ) (643 ) 2,803 — 1,763 Benefit (provision) for income taxes 82 133 (527 ) — (312 ) Equity in earnings (loss) of investee companies, net of tax 1,714 1,166 (52 ) (2,880 ) (52 ) Net earnings $ 1,399 $ 656 $ 2,224 $ (2,880 ) $ 1,399 Total comprehensive income $ 1,427 $ 659 $ 2,205 $ (2,864 ) $ 1,427 Statement of Operations For the Three Months Ended September 30, 2017 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Revenues $ 40 $ 3 $ 3,128 $ — $ 3,171 Costs and expenses: Operating 23 1 1,838 — 1,862 Selling, general and administrative 13 59 453 — 525 Depreciation and amortization 1 6 48 — 55 Total costs and expenses 37 66 2,339 — 2,442 Operating income (loss) 3 (63 ) 789 — 729 Interest (expense) income, net (129 ) (123 ) 153 — (99 ) Loss on early extinguishment of debt (5 ) — — — (5 ) Other items, net (9 ) (11 ) 1 — (19 ) Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies (140 ) (197 ) 943 — 606 Benefit (provision) for income taxes 43 62 (277 ) — (172 ) Equity in earnings (loss) of investee companies, net of tax 689 369 (16 ) (1,058 ) (16 ) Net earnings from continuing operations 592 234 650 (1,058 ) 418 Net earnings from discontinued operations, net of tax — — 174 — 174 Net earnings $ 592 $ 234 $ 824 $ (1,058 ) $ 592 Total comprehensive income $ 607 $ 229 $ 830 $ (1,059 ) $ 607 Statement of Operations For the Nine Months Ended September 30, 2017 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Revenues $ 124 $ 8 $ 9,639 $ — $ 9,771 Costs and expenses: Operating 69 4 5,867 — 5,940 Selling, general and administrative 37 185 1,298 — 1,520 Depreciation and amortization 3 18 145 — 166 Total costs and expenses 109 207 7,310 — 7,626 Operating income (loss) 15 (199 ) 2,329 — 2,145 Interest (expense) income, net (378 ) (360 ) 447 — (291 ) Loss on early extinguishment of debt (5 ) — — — (5 ) Other items, net (27 ) (42 ) 13 — (56 ) Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies (395 ) (601 ) 2,789 — 1,793 Benefit (provision) for income taxes 120 184 (783 ) — (479 ) Equity in earnings (loss) of investee companies, net of tax 673 1,062 (45 ) (1,735 ) (45 ) Net earnings from continuing operations 398 645 1,961 (1,735 ) 1,269 Net loss from discontinued operations, net of tax — — (871 ) — (871 ) Net earnings $ 398 $ 645 $ 1,090 $ (1,735 ) $ 398 Total comprehensive income $ 439 $ 633 $ 1,111 $ (1,744 ) $ 439 Balance Sheet At September 30, 2018 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Assets Cash and cash equivalents $ 62 $ — $ 120 $ — $ 182 Receivables, net 21 1 3,675 — 3,697 Programming and other inventory 2 2 1,824 — 1,828 Prepaid expenses and other current assets 16 31 323 (37 ) 333 Total current assets 101 34 5,942 (37 ) 6,040 Property and equipment 34 220 2,750 — 3,004 Less accumulated depreciation and amortization 17 179 1,586 — 1,782 Net property and equipment 17 41 1,164 — 1,222 Programming and other inventory 6 5 3,857 — 3,868 Goodwill 98 62 4,761 — 4,921 Intangible assets — — 2,650 — 2,650 Investments in consolidated subsidiaries 47,000 16,332 — (63,332 ) — Other assets 160 5 2,202 — 2,367 Intercompany — 758 31,330 (32,088 ) — Total Assets $ 47,382 $ 17,237 $ 51,906 $ (95,457 ) $ 21,068 Liabilities and Stockholders’ Equity Accounts payable $ 5 $ 2 $ 222 $ — $ 229 Participants’ share and royalties payable — — 1,110 — 1,110 Program rights 3 2 401 — 406 Commercial paper 374 — — — 374 Current portion of long-term debt 2 — 12 — 14 Accrued expenses and other current liabilities 356 282 1,259 (37 ) 1,860 Total current liabilities 740 286 3,004 (37 ) 3,993 Long-term debt 9,385 — 80 — 9,465 Other liabilities 2,655 225 2,216 — 5,096 Intercompany 32,088 — — (32,088 ) — Stockholders’ Equity: Preferred stock — — 126 (126 ) — Common stock 1 123 590 (713 ) 1 Additional paid-in capital 43,668 — 60,894 (60,894 ) 43,668 Retained earnings (accumulated deficit) (17,762 ) 16,914 (10,262 ) (6,652 ) (17,762 ) Accumulated other comprehensive income (loss) (634 ) 20 58 (78 ) (634 ) 25,273 17,057 51,406 (68,463 ) 25,273 Less treasury stock, at cost 22,759 331 4,800 (5,131 ) 22,759 Total Stockholders’ Equity 2,514 16,726 46,606 (63,332 ) 2,514 Total Liabilities and Stockholders’ Equity $ 47,382 $ 17,237 $ 51,906 $ (95,457 ) $ 21,068 Balance Sheet At December 31, 2017 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Assets Cash and cash equivalents $ 173 $ — $ 112 $ — $ 285 Receivables, net 29 2 3,666 — 3,697 Programming and other inventory 3 3 1,822 — 1,828 Prepaid expenses and other current assets 130 28 341 (36 ) 463 Total current assets 335 33 5,941 (36 ) 6,273 Property and equipment 49 217 2,785 — 3,051 Less accumulated depreciation and amortization 27 163 1,581 — 1,771 Net property and equipment 22 54 1,204 — 1,280 Programming and other inventory 3 4 2,874 — 2,881 Goodwill 98 62 4,731 — 4,891 Intangible assets — — 2,666 — 2,666 Investments in consolidated subsidiaries 45,504 15,225 — (60,729 ) — Other assets 162 5 2,685 — 2,852 Intercompany — 1,221 29,562 (30,783 ) — Total Assets $ 46,124 $ 16,604 $ 49,663 $ (91,548 ) $ 20,843 Liabilities and Stockholders ’ Equity Accounts payable $ 1 $ 30 $ 200 $ — $ 231 Participants’ share and royalties payable — — 986 — 986 Program rights 4 4 365 — 373 Commercial paper 679 — — — 679 Current portion of long-term debt 2 — 17 — 19 Accrued expenses and other current liabilities 352 269 1,099 (36 ) 1,684 Total current liabilities 1,038 303 2,667 (36 ) 3,972 Long-term debt 9,378 — 86 — 9,464 Other liabilities 2,947 234 2,248 — 5,429 Intercompany 30,783 — — (30,783 ) — Stockholders’ Equity: Preferred stock — — 126 (126 ) — Common stock 1 123 590 (713 ) 1 Additional paid-in capital 43,797 — 60,894 (60,894 ) 43,797 Retained earnings (accumulated deficit) (18,900 ) 16,257 (12,224 ) (4,033 ) (18,900 ) Accumulated other comprehensive income (loss) (662 ) 18 76 (94 ) (662 ) 24,236 16,398 49,462 (65,860 ) 24,236 Less treasury stock, at cost 22,258 331 4,800 (5,131 ) 22,258 Total Stockholders’ Equity 1,978 16,067 44,662 (60,729 ) 1,978 Total Liabilities and Stockholders’ Equity $ 46,124 $ 16,604 $ 49,663 $ (91,548 ) $ 20,843 Statement of Cash Flows For the Nine Months Ended September 30, 2018 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Net cash flow (used for) provided by operating activities $ (357 ) $ (183 ) $ 1,720 $ — $ 1,180 Investing Activities: Investments in and advances to investee companies — — (76 ) — (76 ) Capital expenditures — (12 ) (87 ) — (99 ) Acquisitions — — (29 ) — (29 ) Other investing activities 8 — — — 8 Net cash flow provided by (used for) investing activities from continuing operations 8 (12 ) (192 ) — (196 ) Net cash flow used for investing activities from discontinued operations (23 ) — — — (23 ) Net cash flow used for investing activities (15 ) (12 ) (192 ) — (219 ) Financing Activities: Repayments of short-term debt borrowings, net (305 ) — — — (305 ) Payment of capital lease obligations — — (12 ) — (12 ) Payment of contingent consideration — — (5 ) — (5 ) Dividends (208 ) — — — (208 ) Purchase of Company common stock (497 ) — — — (497 ) Payment of payroll taxes in lieu of issuing shares for stock-based compensation (59 ) — — — (59 ) Proceeds from exercise of stock options 23 — — — 23 Other financing activities (1 ) — — — (1 ) Increase (decrease) in intercompany payables 1,308 195 (1,503 ) — — Net cash flow provided by (used for) financing activities 261 195 (1,520 ) — (1,064 ) Net (decrease) increase in cash and cash equivalents (111 ) — 8 — (103 ) Cash and cash equivalents at beginning of period 173 — 112 — 285 Cash and cash equivalents at end of period $ 62 $ — $ 120 $ — $ 182 Statement of Cash Flows For the Nine Months Ended September 30, 2017 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Net cash flow (used for) provided by operating activities $ (851 ) $ (180 ) $ 2,018 $ — $ 987 Investing Activities: Investments in and advances to investee companies — — (67 ) — (67 ) Capital expenditures — (15 ) (97 ) — (112 ) Acquisitions (including acquired television library) — — (258 ) — (258 ) Proceeds from sale of investments — — 10 — 10 Proceeds from dispositions — — 11 — 11 Other investing activities 17 — — — 17 Net cash flow provided by (used for) investing activities from continuing operations 17 (15 ) (401 ) — (399 ) Net cash flow provided by (used for) investing activities from discontinued operations 1 (4 ) (15 ) — (18 ) Net cash flow provided by (used for) investing activities 18 (19 ) (416 ) — (417 ) Financing Activities: Proceeds from short-term debt borrowings, net 140 — — — 140 Proceeds from issuance of senior notes 889 — — — 889 Repayment of senior notes (701 ) — — — (701 ) Proceeds from debt borrowings of CBS Radio — — 40 — 40 Repayment of debt borrowings of CBS Radio — — (23 ) — (23 ) Payment of capital lease obligations — — (13 ) — (13 ) Payment of contingent consideration — — (7 ) — (7 ) Dividends (224 ) — — — (224 ) Purchase of Company common stock (1,111 ) — — — (1,111 ) Payment of payroll taxes in lieu of issuing shares for stock-based compensation (89 ) — — — (89 ) Proceeds from exercise of stock options 81 — — — 81 Increase (decrease) in intercompany payables 1,545 199 (1,744 ) — — Net cash flow (used for) provided by financing activities 530 199 (1,747 ) — (1,018 ) Net decrease in cash and cash equivalents (303 ) — (145 ) — (448 ) Cash and cash equivalents at beginning of period (includes $24 million of discontinued operations cash) 321 — 301 — 622 Cash and cash equivalents at end of period (includes $30 million of discontinued operations cash) $ 18 $ — $ 156 $ — $ 174 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates -The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. |
Revenues | Revenues Advertising Revenues- Advertising revenues are recognized when the advertising spots are aired on television or displayed on digital platforms. If there is a guarantee to deliver a targeted audience rating or number of impressions, the delivery of the advertising spots that achieve the guarantee represents the performance obligation and revenues are recognized based on the proportion of the audience rating or impressions delivered to the total guaranteed in the contract. Audience ratings and impressions are determined based on data provided by independent third-party companies. Advertising contracts, which are generally short-term, are billed monthly, with payments due shortly after the invoice date. Advertising revenues are primarily generated by the Entertainment and Local Media segments. Content Licensing and Distribution Revenues- Content licensing and distribution revenues are generated from the licensing of internally-produced television programming, fees from the distribution of third-party programming, and the publishing and distribution of consumer books. Program Licensing and Distribution For licenses of internally-produced television programming, each individual episode delivered represents a separate performance obligation and revenues are recognized when the episode is made available to the licensee for exhibition and the license period has begun. For license agreements containing multiple deliverables, revenues are allocated based on the relative standalone selling price of each episode of a television series, which is based on licenses for comparable series within the marketplace. Agreements to license programming are often long term, with collection terms ranging from one to five years. The Company also distributes programs on behalf of third parties. In such arrangements, the Company generally obtains control of the program before selling it to the customer. Therefore, revenues from such distribution arrangements, which include both content licensing and advertising revenues, are recognized based on the gross amount of consideration received from the customer, with a participation expense recognized for the fees paid to the third-party producer. Substantially all of the Company’s program licensing and distribution revenues are generated by the Entertainment segment, with the remainder generated by the Cable Networks segment. Publishing Publishing revenues are recognized when merchandise is shipped or electronically delivered to the consumer. Consumer print books are generally sold with a right of return. The Company records a returns reserve and corresponding decrease in revenue at the time of sale based upon historical trends. For publishing revenues, payments are due shortly after shipment or electronic delivery. Affiliate and Subscription Fees- A majority of the Company’s affiliate and subscription fees are generated by the Cable Networks segment and consist of fees received from multichannel video programming distributors (“MVPDs”) for carriage of the Company’s cable networks and subscription fees for the Showtime digital streaming subscription offering. The Entertainment segment generates affiliate and subscription fees primarily from television stations affiliated with the CBS Television Network and subscribers to C BS All Access , its owned streaming subscription service. In addition, the Local Media segment generates retransmission fees from MVPDs for carriage of the Company’s television stations. The performance obligation for the Company’s affiliate agreements is a license to the Company’s programming provided through the continuous delivery of live linear feeds and, for agreements with MVPDs, also includes a license to programming for video on demand viewing. Affiliate and subscription fees are recognized over the term of the agreement as the Company continuously provides its customer with the right to use its programming. For agreements that provide for a variable fee, revenues are determined each month based on an agreed upon contractual rate applied to the number of subscribers to the customer’s service. For agreements that provide for a fixed fee, which primarily include agreements with television stations affiliated with the CBS Television Network (“network affiliates”), revenues are recognized based on the relative fair value of the content provided over the term of the agreement, which is determined based on the fair value of the network affiliate’s service and the value of the Company’s programming. For affiliate and subscription fee revenues, payments are generally due monthly. |
Net Earnings (Loss) per Common Share | Net Earnings (Loss) per Common Share -Basic net earnings (loss) per share (“EPS”) is based upon net earnings (loss) divided by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the effect of the assumed exercise of stock options and vesting of restricted stock units (“RSUs”) only in the periods in which such effect would have been dilutive. |
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers During the first quarter of 2018 , the Company adopted Financial Accounting Standards Board (“FASB”) guidance on the recognition of revenues which provides a single, comprehensive revenue recognition model for all contracts with customers and supersedes most existing revenue recognition guidance. The main principle under this guidance is that an entity should recognize revenue at the amount it expects to be entitled to in exchange for the transfer of goods or services to customers. The Company applied the modified retrospective method of adoption with the cumulative effect of the initial adoption of $261 million reflected as an adjustment to the opening balance of accumulated deficit as of January 1, 2018. Prior periods continue to be presented under previous accounting guidance (See Note 12 ). Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost During the first quarter of 2018 , the Company adopted FASB amended guidance on the presentation of net periodic pension and postretirement benefit cost (“net benefit cost”). This guidance requires the Company to present the service cost component of net benefit cost in the same line items on the statement of operations as other compensation costs of the related employees. All of the other components of net benefit cost are presented in the statement of operations separately from the service cost component and below the subtotal of operating income. As a result of the adoption of this guidance, the Company presented $16 million and $47 million of net benefit costs in “Other items, net” on the Consolidated Statement of Operations for the three and nine months ended September 30, 2018 , respectively, representing the components of net benefit cost other than service cost. This guidance is required to be applied retrospectively and therefore, $22 million and $65 million of expenses, previously presented within operating income, have been reclassified to “Other items, net” for the three and nine months ended September 30, 2017 , respectively. Stock Compensation: Scope of Modification Accounting During the first quarter of 2018 , the Company adopted FASB amended guidance on the accounting for stock-based compensation which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under this guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award as equity or liability changes as a result of the change in the terms or conditions of a share-based payment award. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Clarifying the Definition of a Business During the first quarter of 2018 , the Company adopted FASB amended guidance on the accounting for business combinations which clarifies the definition of a business and assists entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under this guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset (or group of similar assets), the assets acquired would not represent a business. In addition, in order to be considered a business, an acquisition would have to include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. The amended guidance also narrows the definition of outputs by more closely aligning it with how outputs are described in FASB guidance for revenue recognition. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Intra-Entity Transfers of Assets Other than Inventory During the first quarter of 2018 , the Company adopted FASB amended guidance on the accounting for income taxes, which eliminates the exception in existing guidance that defers the recognition of the tax effects of intra-entity asset transfers other than inventory until the transferred asset is sold to a third party. Under this guidance, an entity recognizes the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Accounting Pronouncements Not Yet Adopted Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In August 2018, the FASB issued guidance on the accounting for implementation costs of a cloud computing arrangement that is considered to be a service contract. This guidance requires companies to follow the guidance for capitalizing costs associated with internal-use software to determine which costs to capitalize in a cloud computing arrangement that is a service contract. The guidance also specifies the financial statement presentation for capitalized implementation costs and the related amortization, as well as required financial statement disclosures. The Company is currently evaluating the impact of this guidance, which is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued amended guidance that eliminates, adds and clarifies certain disclosure requirements for defined benefit pension or other postretirement plans. The Company is currently evaluating the impact of this guidance, which is required to be applied retrospectively and is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. Changes to the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued amended guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements. This guidance, which is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted, is not expected to have an impact on the Company’s consolidated financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued amended guidance that permits an entity to reclassify the income tax effects of federal tax legislation enacted in December 2017 (the “Tax Reform Act”) on items within accumulated other comprehensive income to retained earnings. The Company is currently evaluating the impact of this guidance, which is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued amended guidance for hedge accounting, which expands the eligibility of hedging strategies that qualify for hedge accounting, modifies the recognition and presentation of hedges in the financial statements, and changes how companies assess hedge effectiveness. In addition, this guidance amends and expands disclosure requirements. This guidance, which is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted, is not expected to have a material impact on the Company’s consolidated financial statements. Leases In February 2016, the FASB issued new guidance on the accounting for leases, which supersedes previous lease guidance. Under this guidance, for all leases with terms in excess of one year, including operating leases, the Company will be required to recognize on its balance sheet a lease liability and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance retains a distinction between finance leases and operating leases and the classification criteria is substantially similar to previous guidance. Additionally, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed. This guidance is effective for the Company in the first quarter of 2019. The Company is currently reviewing its lease portfolio, evaluating the impact of this guidance on its consolidated balance sheet and is in the process of implementing new lease accounting software for administering its leases under the new guidance. The Company will apply the modified retrospective method of adoption as of January 1, 2019 and comparative periods will continue to be presented under existing lease guidance. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation from Basic to Diluted Shares | The table below presents a reconciliation of weighted average shares used in the calculation of basic and diluted EPS. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2018 2017 2018 2017 Weighted average shares for basic EPS 375 401 378 405 Dilutive effect of shares issuable under stock-based compensation plans 4 5 4 5 Weighted average shares for diluted EPS 379 406 382 410 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | The following table summarizes the Company’s stock-based compensation expense for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 RSUs and PSUs $ 7 $ 38 $ 86 $ 109 Stock options 7 6 19 20 Stock-based compensation expense, before income taxes 14 44 105 129 Related tax benefit (3 ) (17 ) (26 ) (50 ) Stock-based compensation expense, net of tax benefit $ 11 $ 27 $ 79 $ 79 |
Restructuring and Other Corpo_2
Restructuring and Other Corporate Matters (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring Reserve Rollforward | Balance at 2018 2018 Balance at December 31, 2017 Charges Settlements September 30, 2018 Entertainment $ 45 $ 6 $ (26 ) $ 25 Cable Networks 1 — (1 ) — Publishing 3 1 (2 ) 2 Local Media 14 11 (7 ) 18 Corporate 3 7 (4 ) 6 Total $ 66 $ 25 $ (40 ) $ 51 Balance at 2017 2017 Balance at December 31, 2016 Charges Settlements December 31, 2017 Entertainment $ 17 $ 44 $ (16 ) $ 45 Cable Networks 4 — (3 ) 1 Publishing 1 5 (3 ) 3 Local Media 6 12 (4 ) 14 Corporate 2 2 (1 ) 3 Total $ 30 $ 63 $ (27 ) $ 66 |
Programming and Other Invento_2
Programming and Other Inventory (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Current Programming and Other Inventory | At At September 30, 2018 December 31, 2017 Acquired program rights $ 2,373 $ 2,234 Acquired television library 99 99 Internally produced programming: Released 2,481 1,780 In process and other 680 543 Publishing, primarily finished goods 63 53 Total programming and other inventory 5,696 4,709 Less current portion 1,828 1,828 Total noncurrent programming and other inventory $ 3,868 $ 2,881 |
Noncurrent Programming and Other Inventory | At At September 30, 2018 December 31, 2017 Acquired program rights $ 2,373 $ 2,234 Acquired television library 99 99 Internally produced programming: Released 2,481 1,780 In process and other 680 543 Publishing, primarily finished goods 63 53 Total programming and other inventory 5,696 4,709 Less current portion 1,828 1,828 Total noncurrent programming and other inventory $ 3,868 $ 2,881 |
Related Parties (Tables)
Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Amounts due from Viacom Inc. | The following table presents the amounts due from Viacom Inc. in the normal course of business as reflected on the Company’s Consolidated Balance Sheets. Amounts due to Viacom Inc. were minimal at September 30, 2018 and December 31, 2017 . At At September 30, 2018 December 31, 2017 Receivables $ 40 $ 93 Other assets (Receivables, noncurrent) 25 11 Total amounts due from Viacom $ 65 $ 104 |
Bank Financing and Debt (Tables
Bank Financing and Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table sets forth the Company’s debt. At At September 30, 2018 December 31, 2017 Commercial paper $ 374 $ 679 Senior debt (2.30% - 7.875% due 2019 - 2045) (a) 9,433 9,426 Obligations under capital leases 46 57 Total debt 9,853 10,162 Less commercial paper 374 679 Less current portion of long-term debt 14 19 Total long-term debt, net of current portion $ 9,465 $ 9,464 (a) At September 30, 2018 and December 31, 2017 , the senior debt balances included (i) a net unamortized discount of $60 million and $65 million , respectively, (ii) unamortized deferred financing costs of $44 million and $47 million , respectively, and (iii) a decrease in the carrying value of the debt relating to previously settled fair value hedges of $4 million and $3 million , respectively. The face value of the Company’s senior debt was $9.54 billion at both September 30, 2018 and December 31, 2017 . |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | The components of net periodic cost for the Company’s pension and postretirement benefit plans were as follows: Pension Benefits Postretirement Benefits Three Months Ended September 30, 2018 2017 2018 2017 Components of net periodic cost: Service cost $ 7 $ 7 $ — $ — Interest cost 38 48 3 4 Expected return on plan assets (45 ) (50 ) — — Amortization of actuarial loss (gain) (a) 24 26 (4 ) (5 ) Net periodic cost $ 24 $ 31 $ (1 ) $ (1 ) Pension Benefits Postretirement Benefits Nine Months Ended September 30, 2018 2017 2018 2017 Components of net periodic cost: Service cost $ 23 $ 22 $ — $ — Interest cost 112 143 11 13 Expected return on plan assets (135 ) (151 ) — — Amortization of actuarial loss (gain) (a) 72 77 (13 ) (16 ) Net periodic cost $ 72 $ 91 $ (2 ) $ (3 ) (a) Reflects amounts reclassified from accumulated other comprehensive loss to net earnings. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Changes in Components of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the changes in the components of accumulated other comprehensive loss. Cumulative Translation Adjustments Net Actuarial Loss and Prior Service Cost Accumulated Other Comprehensive Loss At December 31, 2017 $ 159 $ (821 ) $ (662 ) Other comprehensive loss before reclassifications (17 ) — (17 ) Reclassifications to net earnings — 45 (a) 45 Net other comprehensive income (loss) (17 ) 45 28 At September 30, 2018 $ 142 $ (776 ) $ (634 ) Cumulative Translation Adjustments Net Actuarial Loss and Prior Service Cost Accumulated Other Comprehensive Loss At December 31, 2016 $ 151 $ (918 ) $ (767 ) Other comprehensive income before reclassifications 4 — 4 Reclassifications to net earnings — 37 (a) 37 Net other comprehensive income 4 37 41 At September 30, 2017 $ 155 $ (881 ) $ (726 ) (a) Reflects amortization of net actuarial losses. See Note 7 . |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes represents federal, state and local, and foreign income taxes on earnings from continuing operations before income taxes and equity in loss of investee companies. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Provision for income taxes, including interest and before other discrete items (a) $ 120 $ 187 $ 370 $ 548 Impact of tax law changes (b) (54 ) — (54 ) — Excess tax benefits from stock-based compensation (c) — (10 ) — (41 ) Other discrete items (d) (2 ) (5 ) (4 ) (28 ) Provision for income taxes $ 64 $ 172 $ 312 $ 479 Effective income tax rate 11.2 % 28.4 % 17.7 % 26.7 % (a) The lower tax provision for the three and nine months ended September 30, 2018 primarily reflects a reduction in the federal corporate income tax rate from 35% to 21% as a result of the enactment of new federal tax legislation in December 2017 (the “Tax Reform Act”). (b) During the third quarter of 2018 , in connection with the preparation of its 2017 federal tax return, the Company elected to utilize a federal tax law provision that was retroactively renewed in 2018. This tax law provision allowed the Company to immediately expense certain qualified production costs on its 2017 tax return. As a result, during the third quarter of 2018 , the Company established a deferred tax liability associated with this deduction at the 2017 federal tax rate of 35%, and concurrently recorded a net tax benefit of $69 million , primarily reflecting the re-measurement of this deferred tax liability at the reduced federal corporate tax rate of 21% under the Tax Reform Act. This benefit was partially offset by a charge of $15 million to adjust the provisional amount of transition tax on cumulative foreign earnings and profits that resulted from the enactment of the Tax Reform Act in 2017. See discussion below. (c) Reflects the difference between the tax benefit from stock-based compensation expense and the deduction on the tax return associated with the exercise of stock options and vesting of RSUs. This difference occurs because stock-based compensation expense is recorded based on the grant-date fair value of the award, whereas the tax deduction is based on the fair value on the date the stock option is exercised or the RSU vests. (d) For the nine months ended September 30, 2017 , primarily reflects tax benefits from the resolution of certain state income tax matters. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Gains (losses) recognized on derivative financial instruments were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Financial Statement Account Non-designated foreign exchange contracts $ — $ (9 ) $ 13 $ (29 ) Other items, net |
Fair Value Measurements | The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 . These assets and liabilities have been categorized according to the three-level fair value hierarchy established by the FASB, which prioritizes the inputs used in measuring fair value. Level 1 is based on publicly quoted prices for the asset or liability in active markets. Level 2 is based on inputs that are observable other than quoted market prices in active markets, such as quoted prices for the asset or liability in inactive markets or quoted prices for similar assets or liabilities. Level 3 is based on unobservable inputs reflecting the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. At September 30, 2018 Level 1 Level 2 Level 3 Total Assets: Foreign currency hedges $ — $ 9 $ — $ 9 Total Assets $ — $ 9 $ — $ 9 Liabilities: Deferred compensation $ — $ 375 $ — $ 375 Foreign currency hedges — 1 — 1 Total Liabilities $ — $ 376 $ — $ 376 At December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Foreign currency hedges $ — $ 5 $ — $ 5 Total Assets $ — $ 5 $ — $ 5 Liabilities: Deferred compensation $ — $ 363 $ — $ 363 Foreign currency hedges — 10 — 10 Total Liabilities $ — $ 373 $ — $ 373 |
Segment and Revenue Informati_2
Segment and Revenue Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Revenues by Segment | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues: Entertainment $ 2,151 $ 1,815 $ 7,232 $ 6,346 Cable Networks 569 840 1,769 1,954 Publishing 240 228 607 595 Local Media 434 397 1,269 1,218 Corporate/Eliminations (131 ) (109 ) (387 ) (342 ) Total Revenues $ 3,263 $ 3,171 $ 10,490 $ 9,771 |
Intercompany Revenues by Segment | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Intercompany Revenues: Entertainment $ 135 $ 111 $ 394 $ 348 Cable Networks 2 — 2 — Local Media 3 4 13 10 Total Intercompany Revenues $ 140 $ 115 $ 409 $ 358 |
Segment Operating Income (Loss) and Reconciliation to Net Earnings (Loss) | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Segment Operating Income (Loss): Entertainment $ 377 $ 350 $ 1,225 $ 1,104 Cable Networks 248 296 734 801 Publishing 51 47 98 91 Local Media 124 106 370 358 Corporate (64 ) (70 ) (216 ) (209 ) Restructuring and other corporate matters (46 ) — (90 ) — Operating income 690 729 2,121 2,145 Interest expense (115 ) (116 ) (349 ) (336 ) Interest income 12 17 43 45 Loss on early extinguishment of debt — (5 ) — (5 ) Other items, net (17 ) (19 ) (52 ) (56 ) Earnings from continuing operations before income taxes and equity in loss of investee companies 570 606 1,763 1,793 Provision for income taxes (64 ) (172 ) (312 ) (479 ) Equity in loss of investee companies, net of tax (18 ) (16 ) (52 ) (45 ) Net earnings from continuing operations 488 418 1,399 1,269 Net earnings (loss) from discontinued operations, net of tax — 174 — (871 ) Net earnings $ 488 $ 592 $ 1,399 $ 398 |
Depreciation and Amortization, Stock-based Compensation and Capital Expenditures | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Depreciation and Amortization: Entertainment $ 31 $ 29 $ 92 $ 85 Cable Networks 5 5 16 17 Publishing 1 2 4 5 Local Media 11 11 33 34 Corporate 8 8 23 25 Total Depreciation and Amortization $ 56 $ 55 $ 168 $ 166 Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Stock-based Compensation: Entertainment $ 17 $ 16 $ 48 $ 48 Cable Networks 4 3 10 9 Publishing 1 1 3 3 Local Media 3 3 9 9 Corporate (a) (11 ) 21 35 60 Total Stock-based Compensation $ 14 $ 44 $ 105 $ 129 (a) Included in the three and nine months ended September 30, 2018 are forfeitures of $28 million and accelerations of $6 million relating to changes in senior management. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Capital Expenditures: Entertainment $ 19 $ 25 $ 56 $ 63 Cable Networks 5 5 12 12 Publishing 2 1 4 2 Local Media 6 8 15 20 Corporate 5 5 12 15 Total Capital Expenditures $ 37 $ 44 $ 99 $ 112 |
Assets by Segment | At At September 30, 2018 December 31, 2017 Assets: Entertainment $ 12,763 $ 12,626 Cable Networks 3,008 2,878 Publishing 1,047 906 Local Media 3,996 4,042 Corporate/Eliminations 242 378 Discontinued operations 12 13 Total Assets $ 21,068 $ 20,843 |
Revenues by Type | The following table presents the Company’s revenues disaggregated into categories based on the nature of such revenues. Three Months Ended Nine Months Ended September 30, September 30, Revenues by Type 2018 2017 2018 2017 Advertising $ 1,263 $ 1,106 $ 4,323 $ 4,008 Content licensing and distribution: Programming 693 632 2,417 2,166 Publishing 240 228 607 595 Affiliate and subscription fees 1,008 1,145 2,976 2,835 Other 59 60 167 167 Total Revenues $ 3,263 $ 3,171 $ 10,490 $ 9,771 |
Adoption of "Revenue From Con_2
Adoption of "Revenue From Contracts With Customers" (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Financial Statements Impacted by ASC 606 | The following table presents the amount by which each applicable financial statement line item on the Consolidated Statement of Operations would have decreased for the three and nine months ended September 30, 2018 if license renewals were recognized under previous accounting guidance. Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Revenues $ 41 $ 182 Operating expenses 19 82 Operating income 22 100 Less: Provision for income taxes 5 21 Net earnings from continuing operations $ 17 $ 79 Diluted EPS from continuing operations $ .04 $ .21 The following table presents the amount by which each applicable financial statement line item on the Consolidated Balance Sheet at September 30, 2018 would increase (decrease) if all of the above changes resulting from the adoption of ASC 606 were presented under previous accounting guidance. Assets Receivables, net $ (89 ) Programming and other inventory (noncurrent) $ (45 ) Other assets (noncurrent receivables) $ 386 Liabilities Other current liabilities $ (141 ) Deferred income tax liabilities, net $ 46 Participants’ share and royalties payable $ 165 Accumulated deficit $ 182 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table sets forth details of net earnings (loss) from discontinued operations for the three and nine months ended September 30, 2017 . Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Revenues $ 300 $ 856 Costs and expenses: Operating 113 307 Selling, general and administrative 120 370 Market value adjustment (a) (100 ) 980 Restructuring charges (b) — 7 Total costs and expenses 133 1,664 Operating income (loss) 167 (808 ) Interest expense (21 ) (60 ) Other items, net — (1 ) Earnings (loss) from discontinued operations 146 (869 ) Income tax (provision) benefit (c) 28 (2 ) Net earnings (loss) from discontinued operations, net of tax $ 174 $ (871 ) (a) During 2017, prior to its split-off, CBS Radio was measured each reporting period at the lower of its carrying amount or fair value less cost to sell. The value of the transaction with Entercom was determined based on Entercom’s stock price at the closing of the transaction and therefore, the Company recorded a market value adjustment to adjust the carrying value of CBS Radio to the value indicated by the stock valuation of Entercom. (b) Reflects restructuring charges associated with the reorganization of certain business operations, including severance costs and costs associated with exiting contractual obligations. (c) Included in the three and nine months ended September 30, 2017 is a tax benefit of $45 million from the resolution of a tax matter in a foreign jurisdiction relating to a previously disposed business. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statements of Operations | Statement of Operations For the Three Months Ended September 30, 2018 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Revenues $ 47 $ 2 $ 3,214 $ — $ 3,263 Costs and expenses: Operating 25 1 1,896 — 1,922 Selling, general and administrative 11 58 480 — 549 Depreciation and amortization 1 5 50 — 56 Restructuring and other corporate matters — 46 — — 46 Total costs and expenses 37 110 2,426 — 2,573 Operating income (loss) 10 (108 ) 788 — 690 Interest (expense) income, net (133 ) (130 ) 160 — (103 ) Other items, net (7 ) (4 ) (6 ) — (17 ) Earnings (loss) before income taxes and equity in earnings (loss) of investee companies (130 ) (242 ) 942 — 570 Benefit (provision) for income taxes 27 50 (141 ) — (64 ) Equity in earnings (loss) of investee companies, net of tax 591 410 (18 ) (1,001 ) (18 ) Net earnings $ 488 $ 218 $ 783 $ (1,001 ) $ 488 Total comprehensive income $ 500 $ 219 $ 781 $ (1,000 ) $ 500 Statement of Operations For the Nine Months Ended September 30, 2018 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Revenues $ 134 $ 7 $ 10,349 $ — $ 10,490 Costs and expenses: Operating 73 3 6,430 — 6,506 Selling, general and administrative 36 190 1,379 — 1,605 Depreciation and amortization 3 16 149 — 168 Restructuring and other corporate matters — 71 19 — 90 Total costs and expenses 112 280 7,977 — 8,369 Operating income (loss) 22 (273 ) 2,372 — 2,121 Interest (expense) income, net (396 ) (378 ) 468 — (306 ) Other items, net (23 ) 8 (37 ) — (52 ) Earnings (loss) before income taxes and equity in earnings (loss) of investee companies (397 ) (643 ) 2,803 — 1,763 Benefit (provision) for income taxes 82 133 (527 ) — (312 ) Equity in earnings (loss) of investee companies, net of tax 1,714 1,166 (52 ) (2,880 ) (52 ) Net earnings $ 1,399 $ 656 $ 2,224 $ (2,880 ) $ 1,399 Total comprehensive income $ 1,427 $ 659 $ 2,205 $ (2,864 ) $ 1,427 Statement of Operations For the Three Months Ended September 30, 2017 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Revenues $ 40 $ 3 $ 3,128 $ — $ 3,171 Costs and expenses: Operating 23 1 1,838 — 1,862 Selling, general and administrative 13 59 453 — 525 Depreciation and amortization 1 6 48 — 55 Total costs and expenses 37 66 2,339 — 2,442 Operating income (loss) 3 (63 ) 789 — 729 Interest (expense) income, net (129 ) (123 ) 153 — (99 ) Loss on early extinguishment of debt (5 ) — — — (5 ) Other items, net (9 ) (11 ) 1 — (19 ) Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies (140 ) (197 ) 943 — 606 Benefit (provision) for income taxes 43 62 (277 ) — (172 ) Equity in earnings (loss) of investee companies, net of tax 689 369 (16 ) (1,058 ) (16 ) Net earnings from continuing operations 592 234 650 (1,058 ) 418 Net earnings from discontinued operations, net of tax — — 174 — 174 Net earnings $ 592 $ 234 $ 824 $ (1,058 ) $ 592 Total comprehensive income $ 607 $ 229 $ 830 $ (1,059 ) $ 607 Statement of Operations For the Nine Months Ended September 30, 2017 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Revenues $ 124 $ 8 $ 9,639 $ — $ 9,771 Costs and expenses: Operating 69 4 5,867 — 5,940 Selling, general and administrative 37 185 1,298 — 1,520 Depreciation and amortization 3 18 145 — 166 Total costs and expenses 109 207 7,310 — 7,626 Operating income (loss) 15 (199 ) 2,329 — 2,145 Interest (expense) income, net (378 ) (360 ) 447 — (291 ) Loss on early extinguishment of debt (5 ) — — — (5 ) Other items, net (27 ) (42 ) 13 — (56 ) Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies (395 ) (601 ) 2,789 — 1,793 Benefit (provision) for income taxes 120 184 (783 ) — (479 ) Equity in earnings (loss) of investee companies, net of tax 673 1,062 (45 ) (1,735 ) (45 ) Net earnings from continuing operations 398 645 1,961 (1,735 ) 1,269 Net loss from discontinued operations, net of tax — — (871 ) — (871 ) Net earnings $ 398 $ 645 $ 1,090 $ (1,735 ) $ 398 Total comprehensive income $ 439 $ 633 $ 1,111 $ (1,744 ) $ 439 |
Condensed Consolidating Balance Sheets | Balance Sheet At September 30, 2018 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Assets Cash and cash equivalents $ 62 $ — $ 120 $ — $ 182 Receivables, net 21 1 3,675 — 3,697 Programming and other inventory 2 2 1,824 — 1,828 Prepaid expenses and other current assets 16 31 323 (37 ) 333 Total current assets 101 34 5,942 (37 ) 6,040 Property and equipment 34 220 2,750 — 3,004 Less accumulated depreciation and amortization 17 179 1,586 — 1,782 Net property and equipment 17 41 1,164 — 1,222 Programming and other inventory 6 5 3,857 — 3,868 Goodwill 98 62 4,761 — 4,921 Intangible assets — — 2,650 — 2,650 Investments in consolidated subsidiaries 47,000 16,332 — (63,332 ) — Other assets 160 5 2,202 — 2,367 Intercompany — 758 31,330 (32,088 ) — Total Assets $ 47,382 $ 17,237 $ 51,906 $ (95,457 ) $ 21,068 Liabilities and Stockholders’ Equity Accounts payable $ 5 $ 2 $ 222 $ — $ 229 Participants’ share and royalties payable — — 1,110 — 1,110 Program rights 3 2 401 — 406 Commercial paper 374 — — — 374 Current portion of long-term debt 2 — 12 — 14 Accrued expenses and other current liabilities 356 282 1,259 (37 ) 1,860 Total current liabilities 740 286 3,004 (37 ) 3,993 Long-term debt 9,385 — 80 — 9,465 Other liabilities 2,655 225 2,216 — 5,096 Intercompany 32,088 — — (32,088 ) — Stockholders’ Equity: Preferred stock — — 126 (126 ) — Common stock 1 123 590 (713 ) 1 Additional paid-in capital 43,668 — 60,894 (60,894 ) 43,668 Retained earnings (accumulated deficit) (17,762 ) 16,914 (10,262 ) (6,652 ) (17,762 ) Accumulated other comprehensive income (loss) (634 ) 20 58 (78 ) (634 ) 25,273 17,057 51,406 (68,463 ) 25,273 Less treasury stock, at cost 22,759 331 4,800 (5,131 ) 22,759 Total Stockholders’ Equity 2,514 16,726 46,606 (63,332 ) 2,514 Total Liabilities and Stockholders’ Equity $ 47,382 $ 17,237 $ 51,906 $ (95,457 ) $ 21,068 Balance Sheet At December 31, 2017 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Assets Cash and cash equivalents $ 173 $ — $ 112 $ — $ 285 Receivables, net 29 2 3,666 — 3,697 Programming and other inventory 3 3 1,822 — 1,828 Prepaid expenses and other current assets 130 28 341 (36 ) 463 Total current assets 335 33 5,941 (36 ) 6,273 Property and equipment 49 217 2,785 — 3,051 Less accumulated depreciation and amortization 27 163 1,581 — 1,771 Net property and equipment 22 54 1,204 — 1,280 Programming and other inventory 3 4 2,874 — 2,881 Goodwill 98 62 4,731 — 4,891 Intangible assets — — 2,666 — 2,666 Investments in consolidated subsidiaries 45,504 15,225 — (60,729 ) — Other assets 162 5 2,685 — 2,852 Intercompany — 1,221 29,562 (30,783 ) — Total Assets $ 46,124 $ 16,604 $ 49,663 $ (91,548 ) $ 20,843 Liabilities and Stockholders ’ Equity Accounts payable $ 1 $ 30 $ 200 $ — $ 231 Participants’ share and royalties payable — — 986 — 986 Program rights 4 4 365 — 373 Commercial paper 679 — — — 679 Current portion of long-term debt 2 — 17 — 19 Accrued expenses and other current liabilities 352 269 1,099 (36 ) 1,684 Total current liabilities 1,038 303 2,667 (36 ) 3,972 Long-term debt 9,378 — 86 — 9,464 Other liabilities 2,947 234 2,248 — 5,429 Intercompany 30,783 — — (30,783 ) — Stockholders’ Equity: Preferred stock — — 126 (126 ) — Common stock 1 123 590 (713 ) 1 Additional paid-in capital 43,797 — 60,894 (60,894 ) 43,797 Retained earnings (accumulated deficit) (18,900 ) 16,257 (12,224 ) (4,033 ) (18,900 ) Accumulated other comprehensive income (loss) (662 ) 18 76 (94 ) (662 ) 24,236 16,398 49,462 (65,860 ) 24,236 Less treasury stock, at cost 22,258 331 4,800 (5,131 ) 22,258 Total Stockholders’ Equity 1,978 16,067 44,662 (60,729 ) 1,978 Total Liabilities and Stockholders’ Equity $ 46,124 $ 16,604 $ 49,663 $ (91,548 ) $ 20,843 |
Condensed Consolidating Statements of Cash Flows | Statement of Cash Flows For the Nine Months Ended September 30, 2018 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Net cash flow (used for) provided by operating activities $ (357 ) $ (183 ) $ 1,720 $ — $ 1,180 Investing Activities: Investments in and advances to investee companies — — (76 ) — (76 ) Capital expenditures — (12 ) (87 ) — (99 ) Acquisitions — — (29 ) — (29 ) Other investing activities 8 — — — 8 Net cash flow provided by (used for) investing activities from continuing operations 8 (12 ) (192 ) — (196 ) Net cash flow used for investing activities from discontinued operations (23 ) — — — (23 ) Net cash flow used for investing activities (15 ) (12 ) (192 ) — (219 ) Financing Activities: Repayments of short-term debt borrowings, net (305 ) — — — (305 ) Payment of capital lease obligations — — (12 ) — (12 ) Payment of contingent consideration — — (5 ) — (5 ) Dividends (208 ) — — — (208 ) Purchase of Company common stock (497 ) — — — (497 ) Payment of payroll taxes in lieu of issuing shares for stock-based compensation (59 ) — — — (59 ) Proceeds from exercise of stock options 23 — — — 23 Other financing activities (1 ) — — — (1 ) Increase (decrease) in intercompany payables 1,308 195 (1,503 ) — — Net cash flow provided by (used for) financing activities 261 195 (1,520 ) — (1,064 ) Net (decrease) increase in cash and cash equivalents (111 ) — 8 — (103 ) Cash and cash equivalents at beginning of period 173 — 112 — 285 Cash and cash equivalents at end of period $ 62 $ — $ 120 $ — $ 182 Statement of Cash Flows For the Nine Months Ended September 30, 2017 CBS Corp. CBS Operations Inc. Non- Guarantor Affiliates Eliminations CBS Corp. Consolidated Net cash flow (used for) provided by operating activities $ (851 ) $ (180 ) $ 2,018 $ — $ 987 Investing Activities: Investments in and advances to investee companies — — (67 ) — (67 ) Capital expenditures — (15 ) (97 ) — (112 ) Acquisitions (including acquired television library) — — (258 ) — (258 ) Proceeds from sale of investments — — 10 — 10 Proceeds from dispositions — — 11 — 11 Other investing activities 17 — — — 17 Net cash flow provided by (used for) investing activities from continuing operations 17 (15 ) (401 ) — (399 ) Net cash flow provided by (used for) investing activities from discontinued operations 1 (4 ) (15 ) — (18 ) Net cash flow provided by (used for) investing activities 18 (19 ) (416 ) — (417 ) Financing Activities: Proceeds from short-term debt borrowings, net 140 — — — 140 Proceeds from issuance of senior notes 889 — — — 889 Repayment of senior notes (701 ) — — — (701 ) Proceeds from debt borrowings of CBS Radio — — 40 — 40 Repayment of debt borrowings of CBS Radio — — (23 ) — (23 ) Payment of capital lease obligations — — (13 ) — (13 ) Payment of contingent consideration — — (7 ) — (7 ) Dividends (224 ) — — — (224 ) Purchase of Company common stock (1,111 ) — — — (1,111 ) Payment of payroll taxes in lieu of issuing shares for stock-based compensation (89 ) — — — (89 ) Proceeds from exercise of stock options 81 — — — 81 Increase (decrease) in intercompany payables 1,545 199 (1,744 ) — — Net cash flow (used for) provided by financing activities 530 199 (1,747 ) — (1,018 ) Net decrease in cash and cash equivalents (303 ) — (145 ) — (448 ) Cash and cash equivalents at beginning of period (includes $24 million of discontinued operations cash) 321 — 301 — 622 Cash and cash equivalents at end of period (includes $30 million of discontinued operations cash) $ 18 $ — $ 156 $ — $ 174 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | |
Revenues | |||||
Revenue recognized | $ 178 | ||||
Additional Paid-In Capital | |||||
Dividends recorded on common stock | $ 68 | $ 206 | $ 221 | ||
Stock Options [Member] | |||||
Net Earnings (Loss) per Common Share | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7 | 4 | 7 | 4 | |
Other Assets [Member] | |||||
Revenues | |||||
Noncurrent receivables | $ 1,600 | $ 1,600 | $ 1,590 | ||
Accrued Expenses and Other Current Liabilities [Member] | |||||
Revenues | |||||
Deferred revenue | $ 259 | $ 259 | $ 284 | ||
Television Licensing [Member] | Minimum [Member] | |||||
Revenues | |||||
Collection term | 1 year | ||||
Television Licensing [Member] | Maximum [Member] | |||||
Revenues | |||||
Collection term | 5 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Unrecognized Revenues Under Contract) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Unrecognized revenue | $ 3,410 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Unrecognized revenue | $ 522 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Unrecognized revenue | $ 1,580 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Unrecognized revenue | $ 771 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Unrecognized revenue | $ 534 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies (Earnings per Share) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Weighted average shares for basic EPS (in shares) | 375 | 401 | 378 | 405 |
Dilutive effect of shares issuable under stock-based compensation plans (in shares) | 4 | 5 | 4 | 5 |
Weighted average shares for diluted EPS (in shares) | 379 | 406 | 382 | 410 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies (Recently Adopted Accounting Pronouncements Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated deficit | $ 17,762 | $ 17,762 | $ 18,900 | |||
Operating income | 690 | $ 729 | 2,121 | $ 2,145 | ||
Other items, net | (17) | (19) | (52) | (56) | ||
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating income | 22 | 65 | ||||
Other items, net | $ 22 | $ 65 | ||||
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | Other Items, Net [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net benefit cost | 16 | 47 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASC 606 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated deficit | $ (182) | $ (182) | $ 261 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
RSUs and PSUs | $ 7 | $ 38 | $ 86 | $ 109 |
Stock options | 7 | 6 | 19 | 20 |
Stock-based compensation expense, before income taxes | 14 | 44 | 105 | 129 |
Related tax benefit | (3) | (17) | (26) | (50) |
Stock-based compensation expense, net of tax benefit | $ 11 | $ 27 | $ 79 | $ 79 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs granted during the period (in shares) | shares | 3 | |
Weighted average grant date fair value - RSUs (in dollars per share) | $ / shares | $ 53.96 | |
Number of stock options granted during the period (in shares) | shares | 2 | |
Unrecognized future expense of RSUs | $ 201 | $ 201 |
Unrecognized future expense of stock options | 40 | $ 40 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period to expense unrecognized stock-based compensation expense | 2 years 6 months | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period over which grants vest | 1 year | |
Percent of payout on stock-based compensation award | 0.00% | |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period over which grants vest | 4 years | |
Percent of payout on stock-based compensation award | 120.00% | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period over which grants vest | 4 years | |
Weighted average per unit exercise price - options (in dollars per share) | $ / shares | $ 54.32 | |
Term until expiration from grant date - options | 8 years | |
Weighted average period to expense unrecognized stock-based compensation expense | 2 years 7 months 6 days | |
Restructuring and other corporate matters [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense, forfeitures | 28 | $ 28 |
Stock-based compensation expense, accelerations | $ 6 | $ 6 |
Restructuring and Other Corpo_3
Restructuring and Other Corporate Matters (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 33 Months Ended | ||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | |
Restructuring Reserve | ||||||
Beginning balance | $ 66 | $ 30 | ||||
Charges | $ 25 | 25 | 63 | $ 30 | ||
Settlements | (40) | (27) | $ (67) | |||
Ending balance | $ 51 | 51 | 66 | 30 | 51 | |
Other corporate matters, costs | 46 | 65 | ||||
Operating Segments [Member] | Entertainment [Member] | ||||||
Restructuring Reserve | ||||||
Beginning balance | 45 | 17 | ||||
Charges | 6 | 44 | ||||
Settlements | (26) | (16) | ||||
Ending balance | 25 | 25 | 45 | 17 | 25 | |
Operating Segments [Member] | Cable Networks [Member] | ||||||
Restructuring Reserve | ||||||
Beginning balance | 1 | 4 | ||||
Charges | 0 | 0 | ||||
Settlements | (1) | (3) | ||||
Ending balance | 0 | 0 | 1 | 4 | 0 | |
Operating Segments [Member] | Publishing [Member] | ||||||
Restructuring Reserve | ||||||
Beginning balance | 3 | 1 | ||||
Charges | 1 | 5 | ||||
Settlements | (2) | (3) | ||||
Ending balance | 2 | 2 | 3 | 1 | 2 | |
Operating Segments [Member] | Local Media [Member] | ||||||
Restructuring Reserve | ||||||
Beginning balance | 14 | 6 | ||||
Charges | 11 | 12 | ||||
Settlements | (7) | (4) | ||||
Ending balance | 18 | 18 | 14 | 6 | 18 | |
Corporate [Member] | ||||||
Restructuring Reserve | ||||||
Beginning balance | 3 | 2 | ||||
Charges | 7 | 2 | ||||
Settlements | (4) | (1) | ||||
Ending balance | $ 6 | $ 6 | 3 | 2 | 6 | |
Severance Costs [Member] | ||||||
Restructuring Reserve | ||||||
Charges | 17 | 54 | 19 | |||
Settlements | (56) | |||||
Exiting Contractual Obligations [Member] | ||||||
Restructuring Reserve | ||||||
Charges | $ 8 | $ 9 | $ 11 | |||
Settlements | $ (11) |
Programming and Other Invento_3
Programming and Other Inventory (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Acquired program rights | $ 2,373 | $ 2,234 |
Acquired television library | 99 | 99 |
Internally produced programming: | ||
Released | 2,481 | 1,780 |
In process and other | 680 | 543 |
Publishing, primarily finished goods | 63 | 53 |
Total programming and other inventory | 5,696 | 4,709 |
Less current portion | 1,828 | 1,828 |
Total noncurrent programming and other inventory | $ 3,868 | $ 2,881 |
Related Parties (Details)
Related Parties (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)interesttrustee | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)interesttrustee | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||||
SMR Trust ownership in NAI | 80.00% | 80.00% | |||
National Amusements, Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
NAI ownership of CBS Corp. Class A Common Stock (percentage) | 79.70% | 79.70% | |||
NAI ownership of CBS Corp. Class A and Class B Common Stock on a combined basis (percentage) | 10.40% | 10.40% | |||
Number of trustees | trustee | 7 | 7 | |||
Viacom Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenues from transactions with related parties | $ 76 | $ 38 | $ 105 | $ 111 | |
Expenses from transactions with related parties | 9 | 4 | 21 | 13 | |
Amounts due from Related Party | |||||
Receivables | 40 | 40 | $ 93 | ||
Other assets (Receivables, noncurrent) | 25 | 25 | 11 | ||
Amounts due from related parties | 65 | 65 | 104 | ||
Domestic and International Television Joint Ventures [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenues from transactions with related parties | 14 | $ 5 | 67 | $ 54 | |
Amounts due from Related Party | |||||
Amounts due from related parties | $ 23 | $ 23 | $ 27 | ||
Number of equity interests | interest | 2 | 2 |
Bank Financing and Debt (Schedu
Bank Financing and Debt (Schedule of Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 374 | $ 679 |
Senior debt (2.30% - 7.875% due 2019 - 2045) | 9,433 | 9,426 |
Obligations under capital leases | 46 | 57 |
Total debt | 9,853 | 10,162 |
Less commercial paper | 374 | 679 |
Less current portion of long-term debt | 14 | 19 |
Total long-term debt, net of current portion | 9,465 | 9,464 |
Senior Debt [Member] | ||
Debt Instrument [Line Items] | ||
Net unamortized discount on senior debt | 60 | 65 |
Unamortized deferred financing costs | 44 | 47 |
Decrease to carrying value of debt relating to previously settled fair value hedges | 4 | 3 |
Face value of debt | $ 9,540 | $ 9,540 |
Senior Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.30% | |
Senior Debt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.875% |
Bank Financing and Debt (Narrat
Bank Financing and Debt (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Commercial paper | $ 374,000,000 | $ 679,000,000 |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity under credit facility | $ 2,500,000,000 | |
Debt maturity, less than | 90 days | 90 days |
Weighted average interest rate | 2.41% | 1.88% |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity under credit facility | $ 2,500,000,000 | |
Maximum consolidated leverage ratio | 4.5 | |
Consolidated leverage ratio | 3 | |
Period for Consolidated EBITDA | 12 months | |
Amount borrowed under credit facility | $ 0 | |
Availability under credit facility | 2,490,000,000 | |
Debt Due August 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face value of debt | $ 600,000,000 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 7 | $ 7 | $ 23 | $ 22 |
Interest cost | 38 | 48 | 112 | 143 |
Expected return on plan assets | (45) | (50) | (135) | (151) |
Amortization of actuarial loss (gain) | 24 | 26 | 72 | 77 |
Net periodic cost | 24 | 31 | 72 | 91 |
Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 3 | 4 | 11 | 13 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of actuarial loss (gain) | (4) | (5) | (13) | (16) |
Net periodic cost | $ (1) | $ (1) | $ (2) | $ (3) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | Oct. 01, 2018$ / shares | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017$ / shares | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / shares | May 17, 2018 |
Stockholders' Equity Note [Abstract] | ||||||
Class B common stock repurchased under repurchase program (shares) | shares | 1.8 | 9.4 | ||||
Value of shares repurchased | $ 100 | $ 500 | ||||
Average price per share repurchased (in dollars per share) | $ / shares | $ 55.13 | $ 52.94 | ||||
Remaining authorization under share repurchase program | $ 2,560 | $ 2,560 | ||||
Dividends per common share (in dollars per share) | $ / shares | $ 0.18 | $ 0.18 | $ 0.54 | $ 0.54 | ||
Dividends recorded on common stock | $ 68 | $ 206 | $ 221 | |||
Tax provision on net actuarial gain (loss) and prior service costs related to pension and other postretirement benefit plans | $ 14 | $ 24 | ||||
Pro rata stock dividend declared | 0.5687 | |||||
Subsequent Event [Member] | ||||||
Class of Stock [Line Items] | ||||||
Dividends paid per common share (in dollars per share) | $ / shares | $ 0.18 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax | ||||
Accumulated other comprehensive income (loss) beginning balance | $ (662) | $ (767) | ||
Other comprehensive income (loss) before reclassifications | (17) | 4 | ||
Reclassifications to net earnings (loss) | 45 | 37 | ||
Total other comprehensive income, net of tax | $ 12 | $ 15 | 28 | 41 |
Accumulated other comprehensive income (loss) ending balance | (634) | (726) | (634) | (726) |
Cumulative Translation Adjustments [Member] | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Accumulated other comprehensive income (loss) beginning balance | 159 | 151 | ||
Other comprehensive income (loss) before reclassifications | (17) | 4 | ||
Reclassifications to net earnings (loss) | 0 | 0 | ||
Total other comprehensive income, net of tax | (17) | 4 | ||
Accumulated other comprehensive income (loss) ending balance | 142 | 155 | 142 | 155 |
Net Actuarial Loss and Prior Service Cost [Member] | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Accumulated other comprehensive income (loss) beginning balance | (821) | (918) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Reclassifications to net earnings (loss) | 45 | 37 | ||
Total other comprehensive income, net of tax | 45 | 37 | ||
Accumulated other comprehensive income (loss) ending balance | $ (776) | $ (881) | $ (776) | $ (881) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes, including interest and before other discrete items | $ 120 | $ 187 | $ 370 | $ 548 | |
Impact of tax law changes | (54) | 0 | (54) | 0 | |
Excess tax benefits from stock-based compensation | 0 | (10) | 0 | (41) | |
Other discrete items | (2) | (5) | (4) | (28) | |
Provision for income taxes | $ 64 | $ 172 | $ 312 | $ 479 | |
Effective income tax rate | 11.20% | 28.40% | 17.70% | 26.70% | |
Benefit from retroactive renewal | $ 69 | ||||
Adjustment to provisional amount of transition tax on cumulative foreign earnings and profits | $ 15 | ||||
Provisional income tax charge | $ 129 | ||||
Estimated tax on repatriation of foreign earnings | 407 | ||||
Estimated tax on remeasurement of deferred income tax | $ 278 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Carrying value of senior debt | $ 9,433 | $ 9,426 |
Cash Flow Hedging [Member] | Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Maximum derivative contract term | 24 months | |
Notional amount of derivative | $ 391 | 410 |
Senior Debt [Member] | ||
Derivative [Line Items] | ||
Fair value of senior debt | $ 9,570 | $ 10,160 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Gain (Losses) Recognized on Derivative Financial Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Foreign exchange contracts [Member] | ||||
Derivatives [Line Items] | ||||
Non-designated foreign exchange contracts | $ 0 | $ (9) | $ 13 | $ (29) |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Fair Value of Assets and Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Foreign currency hedges | $ 9 | $ 5 |
Total Assets | 9 | 5 |
Liabilities: | ||
Deferred compensation | 375 | 363 |
Foreign currency hedges | 1 | 10 |
Total Liabilities | 376 | 373 |
Level 1 [Member] | ||
Assets: | ||
Foreign currency hedges | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Deferred compensation | 0 | 0 |
Foreign currency hedges | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Foreign currency hedges | 9 | 5 |
Total Assets | 9 | 5 |
Liabilities: | ||
Deferred compensation | 375 | 363 |
Foreign currency hedges | 1 | 10 |
Total Liabilities | 376 | 373 |
Level 3 [Member] | ||
Assets: | ||
Foreign currency hedges | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Deferred compensation | 0 | 0 |
Foreign currency hedges | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Segment and Revenue Informati_3
Segment and Revenue Information (Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 3,263 | $ 3,171 | $ 10,490 | $ 9,771 |
Operating Segments [Member] | Entertainment [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 2,151 | 1,815 | 7,232 | 6,346 |
Operating Segments [Member] | Cable Networks [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 569 | 840 | 1,769 | 1,954 |
Operating Segments [Member] | Publishing [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 240 | 228 | 607 | 595 |
Operating Segments [Member] | Local Media [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 434 | 397 | 1,269 | 1,218 |
Corporate and Eliminations [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | (131) | (109) | (387) | (342) |
Intersegment Eliminations [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | (140) | (115) | (409) | (358) |
Intersegment Eliminations [Member] | Entertainment [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | (135) | (111) | (394) | (348) |
Intersegment Eliminations [Member] | Cable Networks [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | (2) | 0 | (2) | 0 |
Intersegment Eliminations [Member] | Local Media [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ (3) | $ (4) | $ (13) | $ (10) |
Segment and Revenue Informati_4
Segment and Revenue Information (Operating Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ 690 | $ 729 | $ 2,121 | $ 2,145 |
Restructuring and other corporate matters | (46) | 0 | (90) | 0 |
Interest expense | (115) | (116) | (349) | (336) |
Interest income | 12 | 17 | 43 | 45 |
Loss on early extinguishment of debt | 0 | (5) | 0 | (5) |
Other items, net | (17) | (19) | (52) | (56) |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | 570 | 606 | 1,763 | 1,793 |
Provision for income taxes | (64) | (172) | (312) | (479) |
Equity in loss of investee companies, net of tax | (18) | (16) | (52) | (45) |
Net earnings from continuing operations | 488 | 418 | 1,399 | 1,269 |
Net earnings (loss) from discontinued operations, net of tax | 0 | 174 | 0 | (871) |
Net earnings | 488 | 592 | 1,399 | 398 |
Operating Segments [Member] | Entertainment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 377 | 350 | 1,225 | 1,104 |
Operating Segments [Member] | Cable Networks [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 248 | 296 | 734 | 801 |
Operating Segments [Member] | Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 51 | 47 | 98 | 91 |
Operating Segments [Member] | Local Media [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 124 | 106 | 370 | 358 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (64) | (70) | (216) | (209) |
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other corporate matters | $ (46) | $ 0 | $ (90) | $ 0 |
Segment and Revenue Informati_5
Segment and Revenue Information (Depreciation and Amortization) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 56 | $ 55 | $ 168 | $ 166 |
Operating Segments [Member] | Entertainment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 31 | 29 | 92 | 85 |
Operating Segments [Member] | Cable Networks [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 5 | 5 | 16 | 17 |
Operating Segments [Member] | Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 1 | 2 | 4 | 5 |
Operating Segments [Member] | Local Media [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 11 | 11 | 33 | 34 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 8 | $ 8 | $ 23 | $ 25 |
Segment and Revenue Informati_6
Segment and Revenue Information (Stock-based Compensation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | $ 14 | $ 44 | $ 105 | $ 129 |
Operating Segments [Member] | Entertainment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | 17 | 16 | 48 | 48 |
Operating Segments [Member] | Cable Networks [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | 4 | 3 | 10 | 9 |
Operating Segments [Member] | Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | 1 | 1 | 3 | 3 |
Operating Segments [Member] | Local Media [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | 3 | 3 | 9 | 9 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | (11) | $ 21 | 35 | $ 60 |
Stock-based compensation expense, forfeitures | 28 | 28 | ||
Stock-based compensation expense, accelerations | $ 6 | $ 6 |
Segment and Revenue Informati_7
Segment and Revenue Information (Capital Expenditures) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 37 | $ 44 | $ 99 | $ 112 |
Operating Segments [Member] | Entertainment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 19 | 25 | 56 | 63 |
Operating Segments [Member] | Cable Networks [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 5 | 5 | 12 | 12 |
Operating Segments [Member] | Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 2 | 1 | 4 | 2 |
Operating Segments [Member] | Local Media [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 6 | 8 | 15 | 20 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 5 | $ 5 | $ 12 | $ 15 |
Segment and Revenue Informati_8
Segment and Revenue Information (Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Assets | $ 21,068 | $ 20,843 |
Assets of discontinued operations | 12 | 13 |
Operating Segments [Member] | Entertainment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 12,763 | 12,626 |
Operating Segments [Member] | Cable Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,008 | 2,878 |
Operating Segments [Member] | Publishing [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,047 | 906 |
Operating Segments [Member] | Local Media [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,996 | 4,042 |
Corporate and Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 242 | $ 378 |
Segment and Revenue Informati_9
Segment and Revenue Information (Revenues by Type) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,263 | $ 3,171 | $ 10,490 | $ 9,771 |
Advertising [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,263 | 1,106 | 4,323 | 4,008 |
Programming [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 693 | 632 | 2,417 | 2,166 |
Publishing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 240 | 228 | 607 | 595 |
Affiliate and Subscription Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,008 | 1,145 | 2,976 | 2,835 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 59 | $ 60 | $ 167 | $ 167 |
Adoption of "Revenue From Con_3
Adoption of "Revenue From Contracts With Customers" (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Accumulated deficit | $ 17,762,000,000 | $ 17,762,000,000 | $ 18,900,000,000 | |||
Revenue | 3,263,000,000 | $ 3,171,000,000 | 10,490,000,000 | $ 9,771,000,000 | ||
Operating expenses | 1,922,000,000 | 1,862,000,000 | 6,506,000,000 | 5,940,000,000 | ||
Operating income | 690,000,000 | $ 729,000,000 | 2,121,000,000 | $ 2,145,000,000 | ||
ASC 606 [Member] | Other Current Liabilities [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Sales return reserve | 116,000,000 | 116,000,000 | ||||
ASC 606 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Accumulated deficit | (182,000,000) | (182,000,000) | $ 261,000,000 | |||
Distribution Arrangements [Member] | ASC 606 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Revenue | 93,000,000 | 217,000,000 | ||||
Operating expenses | $ 93,000,000 | 217,000,000 | ||||
Operating income | $ 0 |
Adoption of "Revenue From Con_4
Adoption of "Revenue From Contracts With Customers" (Statement of Operations) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | $ 3,263 | $ 3,171 | $ 10,490 | $ 9,771 |
Operating expenses | 1,922 | 1,862 | 6,506 | 5,940 |
Operating income | 690 | 729 | 2,121 | 2,145 |
Less: Provision for income taxes | 64 | 172 | 312 | 479 |
Net earnings from continuing operations | $ 488 | $ 418 | $ 1,399 | $ 1,269 |
Diluted net earnings from continuing operations (in dollars per share) | $ 1.29 | $ 1.03 | $ 3.66 | $ 3.10 |
Renewal of Licensing Agreements [Member] | ASC 606 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | $ 41 | $ 182 | ||
Operating expenses | 19 | 82 | ||
Operating income | 22 | 100 | ||
Less: Provision for income taxes | 5 | 21 | ||
Net earnings from continuing operations | $ 17 | $ 79 | ||
Diluted net earnings from continuing operations (in dollars per share) | $ 0.04 | $ 0.21 |
Adoption of "Revenue From Con_5
Adoption of "Revenue From Contracts With Customers" (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
ASSETS | |||
Receivables, net | $ 3,697 | $ 3,697 | |
Programming and other inventory | 3,868 | 2,881 | |
Other assets (noncurrent receivables) | 2,367 | 2,852 | |
Liabilities | |||
Other current liabilities | 1,536 | 1,341 | |
Deferred income tax liabilities, net | 563 | 480 | |
Accumulated deficit | (17,762) | $ (18,900) | |
ASC 606 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
ASSETS | |||
Receivables, net | (89) | ||
Programming and other inventory | (45) | ||
Other assets (noncurrent receivables) | 386 | ||
Liabilities | |||
Other current liabilities | (141) | ||
Deferred income tax liabilities, net | 46 | ||
Participants’ share and royalties payable | 165 | ||
Accumulated deficit | $ 182 | $ (261) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - CBS Radio [Member] - Discontinued Operations [Member] shares in Millions | Nov. 16, 2017shares |
Common Class B [Member] | |
Discontinued Operations [Line Items] | |
Shares received in exchange offer | 17.9 |
Common Stock [Member] | |
Discontinued Operations [Line Items] | |
Shares exchanged in exchange offer | 101.4 |
Discontinued Operations (Net Ea
Discontinued Operations (Net Earnings (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Costs and expenses: | ||||
Net earnings (loss) from discontinued operations, net of tax | $ 0 | $ 174 | $ 0 | $ (871) |
CBS Radio [Member] | Discontinued Operations [Member] | ||||
Discontinued Operations [Line Items] | ||||
Revenues | 300 | 856 | ||
Costs and expenses: | ||||
Operating | 113 | 307 | ||
Selling, general and administrative | 120 | 370 | ||
Market value adjustment | (100) | 980 | ||
Restructuring charges | 0 | 7 | ||
Total costs and expenses | 133 | 1,664 | ||
Operating income (loss) | 167 | (808) | ||
Interest expense | (21) | (60) | ||
Other items, net | 0 | (1) | ||
Earnings (loss) from discontinued operations | 146 | (869) | ||
Income tax (provision) benefit | 28 | (2) | ||
Net earnings (loss) from discontinued operations, net of tax | 174 | (871) | ||
Other [Member] | Discontinued Operations [Member] | ||||
Costs and expenses: | ||||
Income tax (provision) benefit | $ 45 | $ 45 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 09, 2018USD ($) | Oct. 31, 2018USD ($) | Sep. 30, 2018USD ($)claim | Sep. 30, 2018USD ($)claim | Dec. 31, 2017USD ($)claim | Dec. 31, 2016USD ($) | May 17, 2018 | Sep. 30, 2017claim |
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Outstanding letters of credit and surety bonds | $ 107 | $ 107 | ||||||
Pro rata stock dividend declared | 0.5687 | |||||||
Loss Contingencies [Line Items] | ||||||||
Charitable contribution | $ 20 | |||||||
Costs for settlement and defense of asbestos claims, net of insurance recoveries and taxes | $ 57 | $ 48 | ||||||
Asbestos Claims [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of pending asbestos claims | claim | 31,500 | 31,500 | 31,660 | 32,760 | ||||
Number of new asbestos claims | claim | 770 | |||||||
Number of asbestos claims closed or moved to inactive docket | claim | 1,020 | |||||||
Subsequent Event [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Contributions to grantor trust | $ 120 | |||||||
Restructuring and other corporate matters [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Charitable contribution | $ 20 | $ 20 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements (Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 3,263 | $ 3,171 | $ 10,490 | $ 9,771 |
Costs and expenses: | ||||
Operating | 1,922 | 1,862 | 6,506 | 5,940 |
Selling, general and administrative | 549 | 525 | 1,605 | 1,520 |
Depreciation and amortization | 56 | 55 | 168 | 166 |
Restructuring and other corporate matters | 46 | 0 | 90 | 0 |
Total costs and expenses | 2,573 | 2,442 | 8,369 | 7,626 |
Operating income (loss) | 690 | 729 | 2,121 | 2,145 |
Interest (expense) income, net | (103) | (99) | (306) | (291) |
Loss on early extinguishment of debt | 0 | (5) | 0 | (5) |
Other items, net | (17) | (19) | (52) | (56) |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | 570 | 606 | 1,763 | 1,793 |
Benefit (provision) for income taxes | (64) | (172) | (312) | (479) |
Equity in earnings (loss) of investee companies, net of tax | (18) | (16) | (52) | (45) |
Net earnings from continuing operations | 488 | 418 | 1,399 | 1,269 |
Net earnings (loss) from discontinued operations, net of tax | 0 | 174 | 0 | (871) |
Net earnings | 488 | 592 | 1,399 | 398 |
Total comprehensive income | 500 | 607 | 1,427 | 439 |
Eliminations [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Operating | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Restructuring and other corporate matters | 0 | 0 | ||
Total costs and expenses | 0 | 0 | 0 | 0 |
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest (expense) income, net | 0 | 0 | 0 | 0 |
Loss on early extinguishment of debt | 0 | 0 | ||
Other items, net | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | 0 | 0 | 0 | 0 |
Benefit (provision) for income taxes | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of investee companies, net of tax | (1,001) | (1,058) | (2,880) | (1,735) |
Net earnings from continuing operations | (1,058) | (1,735) | ||
Net earnings (loss) from discontinued operations, net of tax | 0 | 0 | ||
Net earnings | (1,001) | (1,058) | (2,880) | (1,735) |
Total comprehensive income | (1,000) | (1,059) | (2,864) | (1,744) |
CBS Corp. [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 47 | 40 | 134 | 124 |
Costs and expenses: | ||||
Operating | 25 | 23 | 73 | 69 |
Selling, general and administrative | 11 | 13 | 36 | 37 |
Depreciation and amortization | 1 | 1 | 3 | 3 |
Restructuring and other corporate matters | 0 | 0 | ||
Total costs and expenses | 37 | 37 | 112 | 109 |
Operating income (loss) | 10 | 3 | 22 | 15 |
Interest (expense) income, net | (133) | (129) | (396) | (378) |
Loss on early extinguishment of debt | (5) | (5) | ||
Other items, net | (7) | (9) | (23) | (27) |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | (130) | (140) | (397) | (395) |
Benefit (provision) for income taxes | 27 | 43 | 82 | 120 |
Equity in earnings (loss) of investee companies, net of tax | 591 | 689 | 1,714 | 673 |
Net earnings from continuing operations | 592 | 398 | ||
Net earnings (loss) from discontinued operations, net of tax | 0 | 0 | ||
Net earnings | 488 | 592 | 1,399 | 398 |
Total comprehensive income | 500 | 607 | 1,427 | 439 |
CBS Operations Inc. [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 2 | 3 | 7 | 8 |
Costs and expenses: | ||||
Operating | 1 | 1 | 3 | 4 |
Selling, general and administrative | 58 | 59 | 190 | 185 |
Depreciation and amortization | 5 | 6 | 16 | 18 |
Restructuring and other corporate matters | 46 | 71 | ||
Total costs and expenses | 110 | 66 | 280 | 207 |
Operating income (loss) | (108) | (63) | (273) | (199) |
Interest (expense) income, net | (130) | (123) | (378) | (360) |
Loss on early extinguishment of debt | 0 | 0 | ||
Other items, net | (4) | (11) | 8 | (42) |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | (242) | (197) | (643) | (601) |
Benefit (provision) for income taxes | 50 | 62 | 133 | 184 |
Equity in earnings (loss) of investee companies, net of tax | 410 | 369 | 1,166 | 1,062 |
Net earnings from continuing operations | 234 | 645 | ||
Net earnings (loss) from discontinued operations, net of tax | 0 | 0 | ||
Net earnings | 218 | 234 | 656 | 645 |
Total comprehensive income | 219 | 229 | 659 | 633 |
Non-Guarantor Affiliates [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 3,214 | 3,128 | 10,349 | 9,639 |
Costs and expenses: | ||||
Operating | 1,896 | 1,838 | 6,430 | 5,867 |
Selling, general and administrative | 480 | 453 | 1,379 | 1,298 |
Depreciation and amortization | 50 | 48 | 149 | 145 |
Restructuring and other corporate matters | 0 | 19 | ||
Total costs and expenses | 2,426 | 2,339 | 7,977 | 7,310 |
Operating income (loss) | 788 | 789 | 2,372 | 2,329 |
Interest (expense) income, net | 160 | 153 | 468 | 447 |
Loss on early extinguishment of debt | 0 | 0 | ||
Other items, net | (6) | 1 | (37) | 13 |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | 942 | 943 | 2,803 | 2,789 |
Benefit (provision) for income taxes | (141) | (277) | (527) | (783) |
Equity in earnings (loss) of investee companies, net of tax | (18) | (16) | (52) | (45) |
Net earnings from continuing operations | 650 | 1,961 | ||
Net earnings (loss) from discontinued operations, net of tax | 174 | (871) | ||
Net earnings | 783 | 824 | 2,224 | 1,090 |
Total comprehensive income | $ 781 | $ 830 | $ 2,205 | $ 1,111 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 182 | $ 285 | ||
Receivables, net | 3,697 | 3,697 | ||
Programming and other inventory | 1,828 | 1,828 | ||
Prepaid expenses and other current assets | 333 | 463 | ||
Total current assets | 6,040 | 6,273 | ||
Property and equipment | 3,004 | 3,051 | ||
Less accumulated depreciation and amortization | 1,782 | 1,771 | ||
Net property and equipment | 1,222 | 1,280 | ||
Programming and other inventory | 3,868 | 2,881 | ||
Goodwill | 4,921 | 4,891 | ||
Intangible assets | 2,650 | 2,666 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other assets | 2,367 | 2,852 | ||
Intercompany | 0 | 0 | ||
Total Assets | 21,068 | 20,843 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Accounts payable | 229 | 231 | ||
Participants’ share and royalties payable | 1,110 | 986 | ||
Program rights | 406 | 373 | ||
Commercial paper | 374 | 679 | ||
Current portion of long-term debt | 14 | 19 | ||
Accrued expenses and other current liabilities | 1,860 | 1,684 | ||
Total current liabilities | 3,993 | 3,972 | ||
Long-term debt | 9,465 | 9,464 | ||
Other liabilities | 5,096 | 5,429 | ||
Intercompany | 0 | 0 | ||
Stockholders’ Equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 1 | 1 | ||
Additional paid-in capital | 43,668 | 43,797 | ||
Retained earnings (accumulated deficit) | (17,762) | (18,900) | ||
Accumulated other comprehensive income (loss) | (634) | (662) | $ (726) | $ (767) |
Stockholders' equity including treasury stock | 25,273 | 24,236 | ||
Less treasury stock, at cost | 22,759 | 22,258 | ||
Total Stockholders’ Equity | 2,514 | 1,978 | ||
Total Liabilities and Stockholders’ Equity | 21,068 | 20,843 | ||
Eliminations [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Programming and other inventory | 0 | 0 | ||
Prepaid expenses and other current assets | (37) | (36) | ||
Total current assets | (37) | (36) | ||
Property and equipment | 0 | 0 | ||
Less accumulated depreciation and amortization | 0 | 0 | ||
Net property and equipment | 0 | 0 | ||
Programming and other inventory | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Investments in consolidated subsidiaries | (63,332) | (60,729) | ||
Other assets | 0 | 0 | ||
Intercompany | (32,088) | (30,783) | ||
Total Assets | (95,457) | (91,548) | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Accounts payable | 0 | 0 | ||
Participants’ share and royalties payable | 0 | 0 | ||
Program rights | 0 | 0 | ||
Commercial paper | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accrued expenses and other current liabilities | (37) | (36) | ||
Total current liabilities | (37) | (36) | ||
Long-term debt | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Intercompany | (32,088) | (30,783) | ||
Stockholders’ Equity: | ||||
Preferred stock | (126) | (126) | ||
Common stock | (713) | (713) | ||
Additional paid-in capital | (60,894) | (60,894) | ||
Retained earnings (accumulated deficit) | (6,652) | (4,033) | ||
Accumulated other comprehensive income (loss) | (78) | (94) | ||
Stockholders' equity including treasury stock | (68,463) | (65,860) | ||
Less treasury stock, at cost | (5,131) | (5,131) | ||
Total Stockholders’ Equity | (63,332) | (60,729) | ||
Total Liabilities and Stockholders’ Equity | (95,457) | (91,548) | ||
CBS Corp. [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 62 | 173 | ||
Receivables, net | 21 | 29 | ||
Programming and other inventory | 2 | 3 | ||
Prepaid expenses and other current assets | 16 | 130 | ||
Total current assets | 101 | 335 | ||
Property and equipment | 34 | 49 | ||
Less accumulated depreciation and amortization | 17 | 27 | ||
Net property and equipment | 17 | 22 | ||
Programming and other inventory | 6 | 3 | ||
Goodwill | 98 | 98 | ||
Intangible assets | 0 | 0 | ||
Investments in consolidated subsidiaries | 47,000 | 45,504 | ||
Other assets | 160 | 162 | ||
Intercompany | 0 | 0 | ||
Total Assets | 47,382 | 46,124 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Accounts payable | 5 | 1 | ||
Participants’ share and royalties payable | 0 | 0 | ||
Program rights | 3 | 4 | ||
Commercial paper | 374 | 679 | ||
Current portion of long-term debt | 2 | 2 | ||
Accrued expenses and other current liabilities | 356 | 352 | ||
Total current liabilities | 740 | 1,038 | ||
Long-term debt | 9,385 | 9,378 | ||
Other liabilities | 2,655 | 2,947 | ||
Intercompany | 32,088 | 30,783 | ||
Stockholders’ Equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 1 | 1 | ||
Additional paid-in capital | 43,668 | 43,797 | ||
Retained earnings (accumulated deficit) | (17,762) | (18,900) | ||
Accumulated other comprehensive income (loss) | (634) | (662) | ||
Stockholders' equity including treasury stock | 25,273 | 24,236 | ||
Less treasury stock, at cost | 22,759 | 22,258 | ||
Total Stockholders’ Equity | 2,514 | 1,978 | ||
Total Liabilities and Stockholders’ Equity | 47,382 | 46,124 | ||
CBS Operations Inc. [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 1 | 2 | ||
Programming and other inventory | 2 | 3 | ||
Prepaid expenses and other current assets | 31 | 28 | ||
Total current assets | 34 | 33 | ||
Property and equipment | 220 | 217 | ||
Less accumulated depreciation and amortization | 179 | 163 | ||
Net property and equipment | 41 | 54 | ||
Programming and other inventory | 5 | 4 | ||
Goodwill | 62 | 62 | ||
Intangible assets | 0 | 0 | ||
Investments in consolidated subsidiaries | 16,332 | 15,225 | ||
Other assets | 5 | 5 | ||
Intercompany | 758 | 1,221 | ||
Total Assets | 17,237 | 16,604 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Accounts payable | 2 | 30 | ||
Participants’ share and royalties payable | 0 | 0 | ||
Program rights | 2 | 4 | ||
Commercial paper | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accrued expenses and other current liabilities | 282 | 269 | ||
Total current liabilities | 286 | 303 | ||
Long-term debt | 0 | 0 | ||
Other liabilities | 225 | 234 | ||
Intercompany | 0 | 0 | ||
Stockholders’ Equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 123 | 123 | ||
Additional paid-in capital | 0 | 0 | ||
Retained earnings (accumulated deficit) | 16,914 | 16,257 | ||
Accumulated other comprehensive income (loss) | 20 | 18 | ||
Stockholders' equity including treasury stock | 17,057 | 16,398 | ||
Less treasury stock, at cost | 331 | 331 | ||
Total Stockholders’ Equity | 16,726 | 16,067 | ||
Total Liabilities and Stockholders’ Equity | 17,237 | 16,604 | ||
Non-Guarantor Affiliates [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 120 | 112 | ||
Receivables, net | 3,675 | 3,666 | ||
Programming and other inventory | 1,824 | 1,822 | ||
Prepaid expenses and other current assets | 323 | 341 | ||
Total current assets | 5,942 | 5,941 | ||
Property and equipment | 2,750 | 2,785 | ||
Less accumulated depreciation and amortization | 1,586 | 1,581 | ||
Net property and equipment | 1,164 | 1,204 | ||
Programming and other inventory | 3,857 | 2,874 | ||
Goodwill | 4,761 | 4,731 | ||
Intangible assets | 2,650 | 2,666 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other assets | 2,202 | 2,685 | ||
Intercompany | 31,330 | 29,562 | ||
Total Assets | 51,906 | 49,663 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Accounts payable | 222 | 200 | ||
Participants’ share and royalties payable | 1,110 | 986 | ||
Program rights | 401 | 365 | ||
Commercial paper | 0 | 0 | ||
Current portion of long-term debt | 12 | 17 | ||
Accrued expenses and other current liabilities | 1,259 | 1,099 | ||
Total current liabilities | 3,004 | 2,667 | ||
Long-term debt | 80 | 86 | ||
Other liabilities | 2,216 | 2,248 | ||
Intercompany | 0 | 0 | ||
Stockholders’ Equity: | ||||
Preferred stock | 126 | 126 | ||
Common stock | 590 | 590 | ||
Additional paid-in capital | 60,894 | 60,894 | ||
Retained earnings (accumulated deficit) | (10,262) | (12,224) | ||
Accumulated other comprehensive income (loss) | 58 | 76 | ||
Stockholders' equity including treasury stock | 51,406 | 49,462 | ||
Less treasury stock, at cost | 4,800 | 4,800 | ||
Total Stockholders’ Equity | 46,606 | 44,662 | ||
Total Liabilities and Stockholders’ Equity | $ 51,906 | $ 49,663 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements (Statement of Cash Flow) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flow (used for) provided by operating activities | $ 1,180 | $ 987 | |||
Investing Activities: | |||||
Investments in and advances to investee companies | (76) | (67) | |||
Capital expenditures | $ (37) | $ (44) | (99) | (112) | |
Acquisitions (including acquired television library) | (29) | (258) | |||
Proceeds from sale of investments | 0 | 10 | |||
Proceeds from dispositions | 0 | 11 | |||
Other investing activities | 8 | 17 | |||
Net cash flow used for investing activities from continuing operations | (196) | (399) | |||
Net cash flow used for investing activities from discontinued operations | (23) | (18) | |||
Net cash flow used for investing activities | (219) | (417) | |||
Financing Activities: | |||||
(Repayments of) proceeds from short-term debt borrowings, net | (305) | 140 | |||
Proceeds from issuance of senior notes | 0 | 889 | |||
Repayment of senior notes | 0 | (701) | |||
Proceeds from debt borrowings of CBS Radio | 0 | 40 | |||
Repayment of debt borrowings of CBS Radio | 0 | (23) | |||
Payment of capital lease obligations | (12) | (13) | |||
Payment of contingent consideration | (5) | (7) | |||
Dividends | (208) | (224) | |||
Purchase of Company common stock | (497) | (1,111) | |||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (59) | (89) | |||
Proceeds from exercise of stock options | 23 | 81 | |||
Other financing activities | (1) | 0 | |||
Increase (decrease) in intercompany payables | 0 | 0 | |||
Net cash flow (used for) provided by financing activities | (1,064) | (1,018) | |||
Net decrease in cash and cash equivalents | (103) | (448) | |||
Cash and cash equivalents at beginning of period (includes $24 (2017) of discontinued operations cash) | 285 | 622 | |||
Cash and cash equivalents at end of period (includes $30 (2017) of discontinued operations cash) | 182 | 174 | 182 | 174 | |
Cash and cash equivalents of discontinued operations | 30 | 30 | $ 24 | ||
Eliminations [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flow (used for) provided by operating activities | 0 | 0 | |||
Investing Activities: | |||||
Investments in and advances to investee companies | 0 | 0 | |||
Capital expenditures | 0 | 0 | |||
Acquisitions (including acquired television library) | 0 | 0 | |||
Proceeds from sale of investments | 0 | ||||
Proceeds from dispositions | 0 | ||||
Other investing activities | 0 | 0 | |||
Net cash flow used for investing activities from continuing operations | 0 | 0 | |||
Net cash flow used for investing activities from discontinued operations | 0 | 0 | |||
Net cash flow used for investing activities | 0 | 0 | |||
Financing Activities: | |||||
(Repayments of) proceeds from short-term debt borrowings, net | 0 | 0 | |||
Proceeds from issuance of senior notes | 0 | ||||
Repayment of senior notes | 0 | ||||
Proceeds from debt borrowings of CBS Radio | 0 | ||||
Repayment of debt borrowings of CBS Radio | 0 | ||||
Payment of capital lease obligations | 0 | 0 | |||
Payment of contingent consideration | 0 | 0 | |||
Dividends | 0 | 0 | |||
Purchase of Company common stock | 0 | 0 | |||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | 0 | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | |||
Other financing activities | 0 | ||||
Increase (decrease) in intercompany payables | 0 | 0 | |||
Net cash flow (used for) provided by financing activities | 0 | 0 | |||
Net decrease in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of period (includes $24 (2017) of discontinued operations cash) | 0 | 0 | |||
Cash and cash equivalents at end of period (includes $30 (2017) of discontinued operations cash) | 0 | 0 | 0 | 0 | |
CBS Corp. [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flow (used for) provided by operating activities | (357) | (851) | |||
Investing Activities: | |||||
Investments in and advances to investee companies | 0 | 0 | |||
Capital expenditures | 0 | 0 | |||
Acquisitions (including acquired television library) | 0 | 0 | |||
Proceeds from sale of investments | 0 | ||||
Proceeds from dispositions | 0 | ||||
Other investing activities | 8 | 17 | |||
Net cash flow used for investing activities from continuing operations | 8 | 17 | |||
Net cash flow used for investing activities from discontinued operations | (23) | 1 | |||
Net cash flow used for investing activities | (15) | 18 | |||
Financing Activities: | |||||
(Repayments of) proceeds from short-term debt borrowings, net | (305) | 140 | |||
Proceeds from issuance of senior notes | 889 | ||||
Repayment of senior notes | (701) | ||||
Proceeds from debt borrowings of CBS Radio | 0 | ||||
Repayment of debt borrowings of CBS Radio | 0 | ||||
Payment of capital lease obligations | 0 | 0 | |||
Payment of contingent consideration | 0 | 0 | |||
Dividends | (208) | (224) | |||
Purchase of Company common stock | (497) | (1,111) | |||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (59) | (89) | |||
Proceeds from exercise of stock options | 23 | 81 | |||
Other financing activities | (1) | ||||
Increase (decrease) in intercompany payables | 1,308 | 1,545 | |||
Net cash flow (used for) provided by financing activities | 261 | 530 | |||
Net decrease in cash and cash equivalents | (111) | (303) | |||
Cash and cash equivalents at beginning of period (includes $24 (2017) of discontinued operations cash) | 173 | 321 | |||
Cash and cash equivalents at end of period (includes $30 (2017) of discontinued operations cash) | 62 | 18 | 62 | 18 | |
CBS Operations Inc. [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flow (used for) provided by operating activities | (183) | (180) | |||
Investing Activities: | |||||
Investments in and advances to investee companies | 0 | 0 | |||
Capital expenditures | (12) | (15) | |||
Acquisitions (including acquired television library) | 0 | 0 | |||
Proceeds from sale of investments | 0 | ||||
Proceeds from dispositions | 0 | ||||
Other investing activities | 0 | 0 | |||
Net cash flow used for investing activities from continuing operations | (12) | (15) | |||
Net cash flow used for investing activities from discontinued operations | 0 | (4) | |||
Net cash flow used for investing activities | (12) | (19) | |||
Financing Activities: | |||||
(Repayments of) proceeds from short-term debt borrowings, net | 0 | 0 | |||
Proceeds from issuance of senior notes | 0 | ||||
Repayment of senior notes | 0 | ||||
Proceeds from debt borrowings of CBS Radio | 0 | ||||
Repayment of debt borrowings of CBS Radio | 0 | ||||
Payment of capital lease obligations | 0 | 0 | |||
Payment of contingent consideration | 0 | 0 | |||
Dividends | 0 | 0 | |||
Purchase of Company common stock | 0 | 0 | |||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | 0 | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | |||
Other financing activities | 0 | ||||
Increase (decrease) in intercompany payables | 195 | 199 | |||
Net cash flow (used for) provided by financing activities | 195 | 199 | |||
Net decrease in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of period (includes $24 (2017) of discontinued operations cash) | 0 | 0 | |||
Cash and cash equivalents at end of period (includes $30 (2017) of discontinued operations cash) | 0 | 0 | 0 | 0 | |
Non-Guarantor Affiliates [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flow (used for) provided by operating activities | 1,720 | 2,018 | |||
Investing Activities: | |||||
Investments in and advances to investee companies | (76) | (67) | |||
Capital expenditures | (87) | (97) | |||
Acquisitions (including acquired television library) | (29) | (258) | |||
Proceeds from sale of investments | 10 | ||||
Proceeds from dispositions | 11 | ||||
Other investing activities | 0 | 0 | |||
Net cash flow used for investing activities from continuing operations | (192) | (401) | |||
Net cash flow used for investing activities from discontinued operations | 0 | (15) | |||
Net cash flow used for investing activities | (192) | (416) | |||
Financing Activities: | |||||
(Repayments of) proceeds from short-term debt borrowings, net | 0 | 0 | |||
Proceeds from issuance of senior notes | 0 | ||||
Repayment of senior notes | 0 | ||||
Proceeds from debt borrowings of CBS Radio | 40 | ||||
Repayment of debt borrowings of CBS Radio | (23) | ||||
Payment of capital lease obligations | (12) | (13) | |||
Payment of contingent consideration | (5) | (7) | |||
Dividends | 0 | 0 | |||
Purchase of Company common stock | 0 | 0 | |||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | 0 | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | |||
Other financing activities | 0 | ||||
Increase (decrease) in intercompany payables | (1,503) | (1,744) | |||
Net cash flow (used for) provided by financing activities | (1,520) | (1,747) | |||
Net decrease in cash and cash equivalents | 8 | (145) | |||
Cash and cash equivalents at beginning of period (includes $24 (2017) of discontinued operations cash) | 112 | 301 | |||
Cash and cash equivalents at end of period (includes $30 (2017) of discontinued operations cash) | $ 120 | $ 156 | $ 120 | $ 156 |