º¬Ð߲ݴ«Ã½

Quarterly report pursuant to Section 13 or 15(d)

Disposals

v3.8.0.1
Disposals
3 Months Ended
Mar. 31, 2018
Disposals [Abstract] Ìý
Disposals

(4)ÌýÌýÌýDisposals

On March 9, 2018, º¬Ð߲ݴ«Ã½ completed the GCI Liberty Split-Off. At the time of the GCI Liberty Split-Off, GCI Liberty was comprised of, among other things, GCI Liberty’s legacy business, º¬Ð߲ݴ«Ã½â€™s former interest in Liberty Broadband, Charter and LendingTree, and º¬Ð߲ݴ«Ã½â€™s former wholly-owned subsidiary Evite. º¬Ð߲ݴ«Ã½ viewed Liberty Broadband, LendingTree and Evite as separate components and evaluated them separately for discontinued operations presentation. As º¬Ð߲ݴ«Ã½â€™s former interest in Charter was accounted for as an available for sale investment it did not meet the definition of a component for discontinued operation presentation. The disposition of Liberty Broadband was considered significant to the overall financials and therefore was considered to be a strategic shift.ÌýÌýAccordingly, the accompanying condensed consolidated financial statements of º¬Ð߲ݴ«Ã½ have been prepared to reflect º¬Ð߲ݴ«Ã½â€™s interest in Liberty Broadband as a discontinued operation. The disposition of LendingTree and Evite as part of the GCI Liberty Split-Off does not have a major effect on º¬Ð߲ݴ«Ã½â€™s historical or future results. Therefore, the disposition of LendingTree and Evite was not considered a strategic shift in º¬Ð߲ݴ«Ã½â€™s operations. Accordingly, LendingTree and Evite are not presented as discontinued operations in the accompanying condensed consolidated financial statements of º¬Ð߲ݴ«Ã½. LendingTree and Evite are included in the Corporate and other segment through March 8, 2018.Ìý

Included in revenue in the accompanying condensed consolidated statements of operations is $3 million and $4 million for the three months ended March 31, 2018 and 2017, respectively, related to Evite. Included in net earnings (loss) in the accompanying condensed consolidated statements of operations are losses of $2 million for both of the three months ended March 31, 2018 and 2017, respectively, related to Evite.Ìý Included in total assets in the accompanying condensed consolidated balance sheets as of December 31, 2017 is $43 million related to Evite.Ìý Included in net earnings (loss) in the accompanying condensed consolidated statements of operations are earnings of less than a million and $1 million for the three months ended March 31, 2018 and 2017, respectively, related to LendingTree. Included in total assets in the accompanying condensed consolidated balance sheets as of December 31, 2017 is $115 million related to LendingTree.

Certain financial information for the Company’s investment in Liberty Broadband, which is included in the discontinued operations line items of the condensed consolidated º¬Ð߲ݴ«Ã½ balance sheets as of December 31, 2017 is as follows:

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December 31,

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2017

Ìý

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amounts in millions

Ìý

Investment in Liberty Broadband measured at fair value

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$

3,635

Ìý

Deferred income tax liabilities

Ìý

$

303

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Ìý

Certain financial information for the Company’s investment in Liberty Broadband, which is included in earnings (loss) from discontinued operations is as follows:

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Three months endedÌý

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Three months endedÌý

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MarchÌý31,

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MarchÌý31,

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Ìý

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2018

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2017

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Ìý

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amountsÌýinÌýmillions

Ìý

Earnings (loss) before income taxes

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$

187

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526

Ìý

Income tax (expense) benefit

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$

(46)

Ìý

(195)

Ìý

Ìý

The impact from discontinued operations on basic and diluted earnings (loss) per share is as follows:

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Three months endedÌý

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Three months endedÌý

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March 31,

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March 31,

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2018

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2017

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Basic earnings (loss) from discontinued operations attributable to º¬Ð߲ݴ«Ã½ shareholders per common share:

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Series A and Series B QVC Group common stock

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$

NA

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NA

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Ìý

Series A and Series B Liberty Ventures common stock

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$

1.64

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3.89

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Ìý

Diluted earnings (loss) from discontinued operations attributable to º¬Ð߲ݴ«Ã½ shareholders per common share:

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Series A and Series B QVC Group common stock

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$

NA

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NA

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Ìý

Series A and Series B Liberty Ventures common stock

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$

1.62

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3.85

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Ìý

Ìý

Prior to the GCI Liberty Split-Off, º¬Ð߲ݴ«Ã½ accounted for the investment in Liberty Broadband at its fair value. Accordingly, Liberty Broadband’s assets, liabilities and results of operations were not included in º¬Ð߲ݴ«Ã½â€™s consolidated financial statements. Summary financial information for Liberty Broadband for the periods prior to the GCI Liberty Split-Off is as follows:

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December 31,

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2017

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amounts in millions

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Current assets

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$

84

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Total assets

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$

11,932

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Current liabilities

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$

11

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Total liabilitiesÌý

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$

1,445

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Equity

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$

10,487

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Three months endedÌý

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MarchÌý31,

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2017

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amountsÌýinÌýmillions

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Operating income

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$

(6)

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Share of earnings (loss) of affiliate

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$

19

Ìý

Gain (loss) on dilution of investment in affiliate

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$

(32)

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Income tax (expense) benefit

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$

Ìý8

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Net earnings (loss) attributable to Liberty Broadband shareholders

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$

(14)

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Ìý