SILVER SPRING, Md.,
July 31, 2017 /PRNewswire/
-- Discovery Communications, Inc. ("Discovery" or the
"Company") (NASDAQ: DISCA, DISCB, DISCK) today reported financial
results for the second quarter ended June 30, 2017.
Second Quarter Results
Second quarter revenues of $1,745
million increased 2% compared to the prior year, as 2%
growth at U.S. Networks and 3% growth at International Networks
were partially offset by a 4% decline at Education and Other.
Adjusted Operating Income Before Depreciation and Amortization
("OIBDA")(1) increased 2% to $717
million, as 4% growth at U.S. Networks was partially offset
by a 4% decline at International Networks. Excluding currency
effects, second quarter total Company revenues and Adjusted OIBDA
grew 3% and 2%, respectively.
Second quarter net income available to Discovery Communications,
Inc. ("DCI Net Income") decreased 8% to $374
million, as improved operating results and lower
restructuring charges were more than offset by currency-related
transactional losses vs. gains in the prior year and increased
losses from equity investees. Our solar investments again had a
negative impact on net income for the second quarter but are still
expected to have a positive impact on net income for the full
year. Diluted earnings per share(2) decreased 3%
to $0.64 due to lower DCI Net Income,
partially offset by fewer shares outstanding. Adjusted
Earnings Per Diluted Share ("Adjusted EPS")(1), which
excludes the impact of amortization of acquisition-related
intangible assets, decreased 4% to $0.68 for the second quarter 2017. Second
quarter Adjusted EPS excluding currency effects increased 9%.
Free cash flow(3) decreased 48% to $157 million for the second quarter of 2017 as
cash flow from operations decreased to $188
million while capital expenditures increased 11% to
$31 million. Second quarter
cash flow from operations decreased primarily due to the timing of
working capital. Capital expenditures increased primarily due
to timing and higher technology and infrastructure spending.
Second quarter free cash flow excluding the impact of currency
effects decreased 37%. For the last twelve months, free cash
flow excluding currency was up 12% compared with the prior year
comparable twelve month period.
(1)
|
See full definitions
of Adjusted Operating Income Before Depreciation and Amortization
and Adjusted Earnings Per Diluted Share on page 5.
|
(2)
|
All per share amounts
are calculated using DCI Net Income. See table on page 14 for the
full schedule.
|
(3)
|
Free cash flow is
defined as cash provided by operating activities less purchases of
property and equipment.
|
SEGMENT
RESULTS
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Networks
|
|
$
|
890
|
|
|
$
|
873
|
|
|
2
|
%
|
|
$
|
1,719
|
|
|
$
|
1,680
|
|
|
2
|
%
|
International
Networks
|
|
811
|
|
|
790
|
|
|
3
|
%
|
|
1,558
|
|
|
1,501
|
|
|
4
|
%
|
Education and
Other
|
|
44
|
|
|
46
|
|
|
(4)
|
%
|
|
81
|
|
|
90
|
|
|
(10)
|
%
|
Corporate and
Inter-Segment Eliminations
|
|
—
|
|
|
(1)
|
|
|
—
|
%
|
|
—
|
|
|
(2)
|
|
|
NM
|
|
Total
Revenues
|
|
$
|
1,745
|
|
|
$
|
1,708
|
|
|
2
|
%
|
|
$
|
3,358
|
|
|
$
|
3,269
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
OIBDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Networks
|
|
$
|
567
|
|
|
$
|
544
|
|
|
4
|
%
|
|
$
|
1,068
|
|
|
$
|
1,017
|
|
|
5
|
%
|
International
Networks
|
|
236
|
|
|
245
|
|
|
(4)
|
%
|
|
430
|
|
|
427
|
|
|
1
|
%
|
Education and
Other
|
|
5
|
|
|
(3)
|
|
|
NM
|
|
|
(1)
|
|
|
(4)
|
|
|
75
|
%
|
Corporate and
Inter-Segment Eliminations
|
|
(91)
|
|
|
(84)
|
|
|
(8)
|
%
|
|
(177)
|
|
|
(164)
|
|
|
(8)
|
%
|
Total Adjusted
OIBDA
|
|
$
|
717
|
|
|
$
|
702
|
|
|
2
|
%
|
|
$
|
1,320
|
|
|
$
|
1,276
|
|
|
3
|
%
|
|
|
|
|
|
U.S.
Networks
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
$
|
400
|
|
|
$
|
386
|
|
|
4
|
%
|
|
$
|
808
|
|
|
$
|
776
|
|
|
4
|
%
|
Advertising
|
|
472
|
|
|
471
|
|
|
—
|
%
|
|
877
|
|
|
873
|
|
|
—
|
%
|
Other
|
|
18
|
|
|
16
|
|
|
13
|
%
|
|
34
|
|
|
31
|
|
|
10
|
%
|
Total
Revenues
|
|
$
|
890
|
|
|
$
|
873
|
|
|
2
|
%
|
|
$
|
1,719
|
|
|
$
|
1,680
|
|
|
2
|
%
|
Adjusted
OIBDA
|
|
$
|
567
|
|
|
$
|
544
|
|
|
4
|
%
|
|
$
|
1,068
|
|
|
$
|
1,017
|
|
|
5
|
%
|
Adjusted OIBDA
Margin
|
|
64
|
%
|
|
62
|
%
|
|
|
|
62
|
%
|
|
61
|
%
|
|
|
U.S. Networks' revenues for the second quarter increased 2% to
$890 million, driven by 4%
distribution growth and relatively flat advertising growth.
Distribution revenue growth was primarily driven by higher rates
partially offset by a decline in subscribers and, to a lesser
extent, the growth was driven by contributions from other
distribution revenues. Other distribution revenues were
comprised of content deliveries under licensing agreements.
Advertising revenues were relatively flat, primarily due to higher
pricing and continued monetization of our GO platform, partially
offset by lower delivery and the impact of the Group Nine
transaction(1). Excluding the impact of the Group
Nine transaction, advertising revenues would have increased 1%.
Operating expenses decreased 2% mainly due to the Group Nine
transaction. Excluding the Group Nine transaction, cost of
revenue was consistent with the prior year and SG&A increased
1%. Adjusted OIBDA increased 4% to $567 million.
(1)
|
The Company completed
its investment, including the contribution and, therefore,
deconsolidation of Seeker and SourceFed, in Group Nine on December
2, 2016.
|
International
Networks
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
$
|
457
|
|
|
$
|
427
|
|
|
7
|
%
|
|
$
|
904
|
|
|
$
|
838
|
|
|
8
|
%
|
Advertising
|
|
333
|
|
|
342
|
|
|
(3)
|
%
|
|
615
|
|
|
627
|
|
|
(2)
|
%
|
Other
|
|
21
|
|
|
21
|
|
|
—
|
%
|
|
39
|
|
|
36
|
|
|
8
|
%
|
Total
Revenues
|
|
$
|
811
|
|
|
$
|
790
|
|
|
3
|
%
|
|
$
|
1,558
|
|
|
$
|
1,501
|
|
|
4
|
%
|
Adjusted
OIBDA
|
|
$
|
236
|
|
|
$
|
245
|
|
|
(4)
|
%
|
|
$
|
430
|
|
|
$
|
427
|
|
|
1
|
%
|
Adjusted OIBDA
Margin
|
|
29
|
%
|
|
31
|
%
|
|
|
|
28
|
%
|
|
28
|
%
|
|
|
International Networks' revenues for the second quarter
increased 3% to $811 million and
Adjusted OIBDA decreased 4% to $236
million. Changes in foreign currency exchange rates
reduced second quarter International Networks' revenue growth by 1%
and increased Adjusted OIBDA growth by 1%. Excluding currency
effects, total revenues increased 4%. Distribution revenues,
excluding the impact of currency effects, grew 7%, mostly due to
higher affiliate rates in Europe
following further investment in sports content and higher affiliate
rates in Latin America. This growth was partially offset by a
comparison against a one-time contractual adjustment in
Europe in the second quarter of
last year. Advertising revenues, excluding the impact of
currency effects, increased 1%, mostly due to higher ratings in
Southern Europe, partially offset
by lower ratings in Asia-Pacific
and the Nordics.
Operating expenses increased 6%, or 8% excluding the impact of
foreign currency exchange rates, primarily due to increased sports
content and production costs. Excluding the impact of foreign
currency exchange rates, Adjusted OIBDA decreased 5%.
Education and
Other
|
|
|
|
|
(dollars in
millions)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Revenues
|
|
$
|
44
|
|
|
$
|
46
|
|
|
(4)
|
%
|
|
$
|
81
|
|
|
$
|
90
|
|
|
(10)
|
%
|
Adjusted
OIBDA
|
|
$
|
5
|
|
|
$
|
(3)
|
|
|
NM
|
|
|
$
|
(1)
|
|
|
$
|
(4)
|
|
|
75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education and Other revenues for the second quarter decreased by
$2 million primarily due to the
impact of the sale of the Raw and Betty production studios,
partially offset by increased revenues at the Education business.
Adjusted OIBDA increased primarily due to the reduction in expenses
as a result of the sale of the Raw and Betty production
studios.
Corporate and Inter-Segment Eliminations
Adjusted OIBDA for the second quarter of 2017 declined primarily
due to higher legal costs.
STOCK REPURCHASE
During the quarter, the Company, pursuant to its existing stock
repurchase program, repurchased 9.1 million shares of its Series C
common stock at an average price of $26.50 per share, for a total of $241 million. On May
11, 2017, the Company repurchased 1.1 million Series C
convertible preferred shares from Advance/Newhouse Programming
Partnership ("ANPP") at $53.41 per
share (or $26.71 per share on an as
converted to common basis), for a total of $60 million pursuant to the previously announced
share repurchase agreement described below between the Company and
ANPP. In total, the Company spent $301
million on share repurchases during the second quarter of
2017.
Through June 30, 2017, the Company had repurchased a total
of 164.1 million shares of its Series C common stock and 2.8
million shares of its Series A common stock under its stock
repurchase program. In aggregate, including the 35.5 million
Series C convertible preferred shares acquired from ANPP and from
Advance Programming Holdings, LLC, this represents $8.5 billion of the Company's shares since
buyback activity was authorized in 2010, at an average price of
$26.48 per share on an adjusted
basis(1). Note that the aggregate share numbers
have not been adjusted to reflect the stock dividend that was
distributed in August 2014.
On May 22, 2014, the Company
entered into a share repurchase agreement with ANPP to repurchase
its shares of the Company's Series C convertible preferred stock,
on a quarterly basis, in proportion to the Company's repurchases
under its stock repurchase program in a manner that is intended to
maintain ANPP's current ownership percentage of the Company.
This agreement was amended by letter agreement on August 25, 2014.
OTHER ITEMS
In a separate release distributed today, Discovery and Scripps
Networks Interactive, Inc. ("Scripps") announced the execution of a
definitive agreement and plan of merger between Discovery and
Scripps in a cash and stock transaction valued at $14.6 billion, or $90 per share, including the assumption of
Scripps' debt. The transaction, which is expected to close by
early 2018, is subject to approval by Discovery and Scripps'
shareholders, regulatory approvals, and other customary closing
conditions. Please refer to the transaction press release for
additional details.
FULL YEAR 2017 OUTLOOK(2)
Discovery will provide forward-looking guidance in connection
with this quarterly earnings announcement on its quarterly earnings
conference call and webcast referenced hereafter.
(1)
|
The average
repurchase price was calculated by dividing a) the aggregate amount
spent on share repurchases since the inception of share repurchases
in 2010 ($8.5 billion) by b) the number of shares that would have
been repurchased if the Series C Common Stock special dividend paid
on August 6, 2014 occurred prior to the inception of share
repurchases in 2010. For each common share repurchased prior to
August 6, 2014, we assume one additional share of Class C Common
Stock was repurchased for no additional consideration. For each
Series C convertible preferred share repurchased, we assume each
preferred share would have converted into two Series C common
shares.
|
|
|
(2)
|
Discovery is unable
to provide a reconciliation of the forward-looking guidance to GAAP
measures as, at this time, Discovery cannot determine the
adjustments that would be required, including those related to
fluctuations in foreign currency exchange rates.
|
NON-GAAP FINANCIAL MEASURES
In addition to the results prepared in accordance with U.S.
generally accepted accounting principles ("GAAP") provided in this
release, the Company has presented Adjusted OIBDA, Adjusted EPS and
free cash flow. These non-GAAP measures should be considered
in addition to, but not as a substitute for, operating income, net
income, earnings per diluted share and other measures of financial
performance reported in accordance with GAAP. Please review
the supplemental financial schedules beginning on page 10 for
reconciliations to the most comparable GAAP measures.
Adjusted OIBDA and Adjusted OIBDA Excluding the Impact of
Currency Effects
The Company evaluates the operating
performance of its segments based on financial measures such as
revenues and Adjusted OIBDA. Adjusted OIBDA is defined as
operating income excluding: (i) mark-to-market share-based
compensation, (ii) depreciation and amortization, (iii)
restructuring and other charges, (iv) certain impairment charges,
(v) gains and losses on business and asset dispositions, and (vi)
certain inter-segment eliminations related to production
studios. As of January 1, 2017,
the Company no longer excludes amortization of deferred launch
incentives in calculating total Adjusted OIBDA as this expense is
not material.
The Company uses Adjusted OIBDA to assess the operating results
and performance of its segments, perform analytical comparisons,
identify strategies to improve performance and allocate resources
to each segment. The Company believes Adjusted OIBDA is
relevant to investors because it allows them to analyze the
operating performance of each segment using the same metric
management uses. The Company excludes mark-to-market
share-based compensation, restructuring and other charges, certain
impairment charges, and gains and losses on business and asset
dispositions from the calculation of Adjusted OIBDA due to their
volatility. The Company also excludes depreciation of fixed
assets and amortization of intangible assets as these amounts do
not represent cash payments in the current reporting period.
Additionally, certain corporate expenses and inter-segment
eliminations related to production studios are excluded from
segment results to enable executive management to evaluate segment
performance based upon the decisions of segment executives.
Refer to page 6 for our methodology for calculating growth rates
excluding the impact of currency effects.
Adjusted EPS and Adjusted EPS Excluding the Impact of
Currency Effects
Adjusted EPS is defined as earnings
excluding the impact of amortization of acquisition-related
intangible assets per diluted share. Note that given the
change in conversion ratio for our preferred stock, the preferred
shares are now only included in the diluted share count. The
Company believes Adjusted EPS is relevant to investors because this
metric allows them to evaluate the performance of the Company's
operations exclusive of the non-cash amortization of
acquisition-related intangible assets that impact the comparability
of results from period to period. Refer to page 6 for our
methodology for calculating growth rates excluding the impact of
currency effects.
Free Cash Flow and Free Cash Flow Excluding the Impact of
Currency Effects
The Company defines free cash flow as cash
provided by operating activities less acquisitions of property and
equipment. The Company uses free cash flow as it believes it
is an important indicator for management and investors of the
Company's liquidity, including its ability to reduce debt, make
strategic investments and return capital to stockholders.
Refer to page 6 for our methodology for calculating growth rates
excluding the impact of currency effects.
Methodology for Calculating Growth Rates Excluding the Impact
of Currency Effects
The impact of exchange rates on our
business is an important factor in understanding period-to-period
comparisons of our results. For example, our international revenues
are favorably impacted as the U.S. dollar weakens relative to other
foreign currencies, and unfavorably impacted as the U.S dollar
strengthens relative to other foreign currencies. We believe the
presentation of results on a constant currency basis ("ex-FX"), in
addition to results reported in accordance with GAAP, provides
useful information about our operating performance because the
presentation ex-FX excludes the effects of foreign currency
volatility and highlights our core operating results. The
presentation of results on a constant currency basis should be
considered in addition to, but not a substitute for, measures of
financial performance reported in accordance with GAAP.
The ex-FX change represents the percentage change on a
period-over-period basis adjusted for foreign currency impacts. The
ex-FX change is calculated as the difference between the current
year amounts translated at a baseline rate (which is based on a
spot rate for each of our currencies determined early in the fiscal
year as part of our forecasting process) (the "2017 Baseline Rate")
and the prior year amounts translated at the same 2017 Baseline
Rate. In addition, consistent with the assumption of a constant
currency environment, our ex-FX results exclude the impact of our
foreign currency hedging activities as well as realized and
unrealized foreign currency transaction gains and losses. Results
on a constant currency basis, as we present them, may not be
comparable to similarly titled measures used by other
companies.
Conference Call Information
Discovery Communications, Inc. will host a conference call
today, July 31, 2017 at 8:00 a.m. ET to discuss the Scripps transaction
and its second quarter results. To listen to the call, visit
http://discoverycommunications.com or dial 1-844-452-2811 inside
the U.S. and 1-574-990-9832 outside of the U.S., using the
following passcode: DISCA.
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains certain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
current expectations, forecasts and assumptions that involve risks
and uncertainties and on information available to the Company as of
the date hereof. The Company's actual results could differ
materially from those stated or implied, due to risks and
uncertainties associated with its business, which include the risk
factors disclosed in its Annual Report on Form 10-K filed with the
SEC on February 14, 2017.
Forward-looking statements include statements regarding the
Company's expectations, beliefs, intentions or strategies regarding
the future, and can be identified by forward-looking words such as
"anticipate," "believe," "could," "continue," "estimate," "expect,"
"intend," "may," "should," "will" and "would" or similar words.
Forward-looking statements in this release include, without
limitation, statements regarding investing in our programming and
strategic growth initiatives. The Company expressly disclaims any
obligation or undertaking to disseminate any updates or revisions
to any forward-looking statement contained herein to reflect any
change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based.
DISCOVERY
COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in millions, except per share amounts)
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
Distribution
|
|
$
|
857
|
|
|
$
|
813
|
|
|
$
|
1,712
|
|
|
$
|
1,614
|
|
Advertising
|
|
805
|
|
|
813
|
|
|
1,492
|
|
|
1,500
|
|
Other
|
|
83
|
|
|
82
|
|
|
154
|
|
|
155
|
|
Total
revenues
|
|
1,745
|
|
|
1,708
|
|
|
3,358
|
|
|
3,269
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Costs of revenues,
excluding depreciation and amortization
|
|
634
|
|
|
603
|
|
|
1,241
|
|
|
1,195
|
|
Selling, general and
administrative
|
|
389
|
|
|
400
|
|
|
804
|
|
|
808
|
|
Depreciation and
amortization
|
|
80
|
|
|
80
|
|
|
160
|
|
|
159
|
|
Restructuring and
other charges
|
|
8
|
|
|
39
|
|
|
32
|
|
|
45
|
|
Loss (gain) on
disposition
|
|
4
|
|
|
—
|
|
|
4
|
|
|
(13)
|
|
Total costs and
expenses
|
|
1,115
|
|
|
1,122
|
|
|
2,241
|
|
|
2,194
|
|
Operating
income
|
|
630
|
|
|
586
|
|
|
1,117
|
|
|
1,075
|
|
Interest
expense
|
|
(91)
|
|
|
(91)
|
|
|
(182)
|
|
|
(176)
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
(54)
|
|
|
—
|
|
Loss from equity
investees, net
|
|
(42)
|
|
|
(23)
|
|
|
(95)
|
|
|
(31)
|
|
Other (expense)
income, net
|
|
(24)
|
|
|
38
|
|
|
(37)
|
|
|
22
|
|
Income before income
taxes
|
|
473
|
|
|
510
|
|
|
749
|
|
|
890
|
|
Income tax
expense
|
|
(93)
|
|
|
(95)
|
|
|
(148)
|
|
|
(206)
|
|
Net income
|
|
380
|
|
|
415
|
|
|
601
|
|
|
684
|
|
Net income
attributable to noncontrolling interests
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Net income
attributable to redeemable noncontrolling interests
|
|
(6)
|
|
|
(6)
|
|
|
(12)
|
|
|
(12)
|
|
Net income available
to Discovery Communications, Inc.
|
|
$
|
374
|
|
|
$
|
408
|
|
|
$
|
589
|
|
|
$
|
671
|
|
|
|
|
|
|
|
|
|
|
Net income per share
available to Discovery Communications, Inc. Series A, B and C
common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.65
|
|
|
$
|
0.66
|
|
|
$
|
1.02
|
|
|
$
|
1.08
|
|
Diluted(1)
|
|
$
|
0.64
|
|
|
$
|
0.66
|
|
|
$
|
1.01
|
|
|
$
|
1.08
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
384
|
|
|
404
|
|
|
387
|
|
|
409
|
|
Diluted(1)
|
|
578
|
|
|
616
|
|
|
583
|
|
|
623
|
|
(1) Diluted shares adjust for the potential dilution that would
occur if common stock equivalents, including convertible preferred
stock and share-based awards, were converted into common stock or
exercised.
DISCOVERY
COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited; in millions)
|
|
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
206
|
|
|
$
|
300
|
|
Receivables,
net
|
|
1,758
|
|
|
1,495
|
|
Content rights,
net
|
|
390
|
|
|
310
|
|
Prepaid expenses and
other current assets
|
|
416
|
|
|
397
|
|
Total current
assets
|
|
2,770
|
|
|
2,502
|
|
|
|
|
|
|
Noncurrent content
rights, net
|
|
2,070
|
|
|
2,089
|
|
Property and
equipment, net
|
|
514
|
|
|
482
|
|
Goodwill,
net
|
|
8,123
|
|
|
8,040
|
|
Intangible assets,
net
|
|
1,481
|
|
|
1,512
|
|
Equity method
investments, including note receivable
|
|
700
|
|
|
557
|
|
Other noncurrent
assets
|
|
491
|
|
|
490
|
|
Total
assets
|
|
$
|
16,149
|
|
|
$
|
15,672
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
222
|
|
|
$
|
241
|
|
Accrued
liabilities
|
|
946
|
|
|
1,075
|
|
Deferred
revenues
|
|
193
|
|
|
163
|
|
Current portion of
debt
|
|
105
|
|
|
82
|
|
Total current
liabilities
|
|
1,466
|
|
|
1,561
|
|
|
|
|
|
|
Noncurrent portion of
debt
|
|
8,158
|
|
|
7,841
|
|
Deferred income
taxes
|
|
370
|
|
|
467
|
|
Other noncurrent
liabilities
|
|
392
|
|
|
393
|
|
Total
liabilities
|
|
10,386
|
|
|
10,262
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
237
|
|
|
243
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
Preferred
stock
|
|
2
|
|
|
2
|
|
Common
stock
|
|
5
|
|
|
5
|
|
Additional paid-in
capital
|
|
7,177
|
|
|
7,046
|
|
Treasury stock, at
cost
|
|
(6,737)
|
|
|
(6,356)
|
|
Retained
earnings
|
|
5,696
|
|
|
5,232
|
|
Accumulated other
comprehensive loss
|
|
(617)
|
|
|
(762)
|
|
Total
equity
|
|
5,526
|
|
|
5,167
|
|
Total liabilities and
equity
|
|
$
|
16,149
|
|
|
$
|
15,672
|
|
DISCOVERY
COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in millions)
|
|
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
Operating
Activities
|
|
|
|
Net income
|
$
|
601
|
|
|
$
|
684
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
Share-based
compensation expense
|
22
|
|
|
27
|
|
Depreciation and
amortization
|
160
|
|
|
159
|
|
Content amortization
and impairment expense
|
910
|
|
|
864
|
|
Loss (gain) on
disposition
|
4
|
|
|
(13)
|
|
Equity in losses of
investee companies, net of cash distributions
|
100
|
|
|
34
|
|
Deferred income
taxes
|
(88)
|
|
|
(105)
|
|
Loss on
extinguishment of debt
|
54
|
|
|
—
|
|
Realized loss from
derivative instruments
|
—
|
|
|
3
|
|
Other, net
|
16
|
|
|
26
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables,
net
|
(249)
|
|
|
(73)
|
|
Content rights,
net
|
(947)
|
|
|
(937)
|
|
Accounts payable and
accrued liabilities
|
(150)
|
|
|
(180)
|
|
Share-based
compensation liabilities
|
(1)
|
|
|
(5)
|
|
Income taxes
receivable and prepaid income taxes
|
32
|
|
|
28
|
|
Foreign currency and
other, net
|
(21)
|
|
|
(122)
|
|
Cash provided by
operating activities
|
443
|
|
|
390
|
|
|
|
|
|
Investing
Activities
|
|
|
|
Payments for
investments
|
(270)
|
|
|
(60)
|
|
Distributions from
equity method investees
|
18
|
|
|
40
|
|
Purchases of property
and equipment
|
(78)
|
|
|
(43)
|
|
Proceeds from
dispositions, net of cash disposed
|
29
|
|
|
19
|
|
Proceeds from
(payments for) derivative instruments, net
|
5
|
|
|
(3)
|
|
Other investing
activities, net
|
3
|
|
|
(2)
|
|
Cash used in
investing activities
|
(293)
|
|
|
(49)
|
|
|
|
|
|
Financing
Activities
|
|
|
|
Commercial paper
borrowings, net
|
25
|
|
|
13
|
|
Borrowings under
revolving credit facility
|
350
|
|
|
280
|
|
Principal repayments
of revolving credit facility
|
(200)
|
|
|
(572)
|
|
Borrowings from debt,
net of discount and including premiums
|
659
|
|
|
498
|
|
Principal repayments
of debt, including discount payment and premiums to par
value
|
(650)
|
|
|
—
|
|
Principal repayments
of capital lease obligations
|
(19)
|
|
|
(17)
|
|
Repurchases of
stock
|
(501)
|
|
|
(750)
|
|
Cash settlement of
common stock repurchase contracts
|
58
|
|
|
—
|
|
Distributions to
redeemable noncontrolling interests
|
(20)
|
|
|
(17)
|
|
Share-based plan
payments, net
|
11
|
|
|
2
|
|
Other financing
activities, net
|
(8)
|
|
|
(13)
|
|
Cash used in
financing activities
|
(295)
|
|
|
(576)
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
51
|
|
|
30
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
(94)
|
|
|
(205)
|
|
Cash and cash
equivalents, beginning of period
|
300
|
|
|
390
|
|
Cash and cash
equivalents, end of period
|
$
|
206
|
|
|
$
|
185
|
|
DISCOVERY
COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NET INCOME TO
ADJUSTED OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
(unaudited; in millions)
|
|
|
|
|
|
Three Months Ended
June 30, 2017
|
|
|
U.S.
Networks
|
|
International
Networks
|
|
Education and
Other
|
|
Corporate and
Inter-Segment
Eliminations
|
|
Total
|
Net income available
to Discovery Communications, Inc.
|
|
|
|
|
|
|
|
|
|
$
|
374
|
|
Net income
attributable to redeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
6
|
|
Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
—
|
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
93
|
|
Other expense
(income), net
|
|
|
|
|
|
|
|
|
|
24
|
|
Loss from equity
investees, net
|
|
|
|
|
|
|
|
|
|
42
|
|
Loss on
extinguishment of debt
|
|
|
|
|
|
|
|
|
|
—
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
91
|
|
Operating
income
|
|
559
|
|
|
177
|
|
|
2
|
|
|
(108)
|
|
|
630
|
|
Inter-segment
eliminations
|
|
2
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
Loss (gain) on
disposition
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Restructuring and
other charges
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
8
|
|
Depreciation and
amortization
|
|
6
|
|
|
55
|
|
|
1
|
|
|
18
|
|
|
80
|
|
Mark-to-market
share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
(5)
|
|
Total Adjusted
OIBDA
|
|
$
|
567
|
|
|
$
|
236
|
|
|
$
|
5
|
|
|
$
|
(91)
|
|
|
$
|
717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2016
|
|
|
U.S.
Networks
|
|
International
Networks
|
|
Education and
Other
|
|
Corporate and
Inter-Segment
Eliminations
|
|
Total
|
Net income available
to Discovery Communications, Inc.
|
|
|
|
|
|
|
|
|
|
$
|
408
|
|
Net income
attributable to redeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
6
|
|
Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
1
|
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
95
|
|
Other expense
(income), net
|
|
|
|
|
|
|
|
|
|
(38)
|
|
Loss from equity
investees, net
|
|
|
|
|
|
|
|
|
|
23
|
|
Loss on
extinguishment of debt
|
|
|
|
|
|
|
|
|
|
—
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
91
|
|
Operating
income
|
|
531
|
|
|
173
|
|
|
(5)
|
|
|
(113)
|
|
|
586
|
|
Inter-segment
eliminations
|
|
1
|
|
|
1
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
Loss (gain) on
disposition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Restructuring and
other charges
|
|
7
|
|
|
15
|
|
|
3
|
|
|
14
|
|
|
39
|
|
Depreciation and
amortization
|
|
5
|
|
|
56
|
|
|
1
|
|
|
18
|
|
|
80
|
|
Mark-to-market
share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
Total Adjusted
OIBDA
|
|
$
|
544
|
|
|
$
|
245
|
|
|
$
|
(3)
|
|
|
$
|
(84)
|
|
|
$
|
702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCOVERY
COMMUNICATIONS, INC. SUPPLEMENTAL FINANCIAL
DATA RECONCILIATION OF NET INCOME TO ADJUSTED
OPERATING INCOME BEFORE DEPRECIATION AND
AMORTIZATION (unaudited; in millions)
|
|
|
|
|
|
Six Months Ended
June 30, 2017
|
|
|
U.S.
Networks
|
|
International
Networks
|
|
Education and
Other
|
|
Corporate and
Inter-Segment
Eliminations
|
|
Total
|
Net income available
to Discovery Communications, Inc.
|
|
|
|
|
|
|
|
|
|
$
|
589
|
|
Net income
attributable to redeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
12
|
|
Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
—
|
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
148
|
|
Other expense
(income), net
|
|
|
|
|
|
|
|
|
|
37
|
|
Loss from equity
investees, net
|
|
|
|
|
|
|
|
|
|
95
|
|
Loss on
extinguishment of debt
|
|
|
|
|
|
|
|
|
|
54
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
182
|
|
Operating
income
|
|
1,042
|
|
|
300
|
|
|
—
|
|
|
(225)
|
|
|
1,117
|
|
Inter-segment
eliminations
|
|
8
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
|
—
|
|
Loss (gain) on
disposition
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Restructuring and
other charges
|
|
4
|
|
|
21
|
|
|
1
|
|
|
6
|
|
|
32
|
|
Depreciation and
amortization
|
|
14
|
|
|
109
|
|
|
2
|
|
|
35
|
|
|
160
|
|
Mark-to-market
share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
Total Adjusted
OIBDA
|
|
$
|
1,068
|
|
|
$
|
430
|
|
|
$
|
(1)
|
|
|
$
|
(177)
|
|
|
$
|
1,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2016
|
|
|
U.S.
Networks
|
|
International
Networks
|
|
Education and
Other
|
|
Corporate and
Inter-Segment
Eliminations
|
|
Total
|
Net income available
to Discovery Communications, Inc.
|
|
|
|
|
|
|
|
|
|
$
|
671
|
|
Net income
attributable to redeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
12
|
|
Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
1
|
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
206
|
|
Other expense
(income), net
|
|
|
|
|
|
|
|
|
|
(22)
|
|
Loss from equity
investees, net
|
|
|
|
|
|
|
|
|
|
31
|
|
Loss on
extinguishment of debt
|
|
|
|
|
|
|
|
|
|
—
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
176
|
|
Operating
income
|
|
992
|
|
|
308
|
|
|
(3)
|
|
|
(222)
|
|
|
1,075
|
|
Inter-segment
eliminations
|
|
5
|
|
|
2
|
|
|
(7)
|
|
|
—
|
|
|
—
|
|
Loss (gain) on
disposition
|
|
—
|
|
|
(13)
|
|
|
—
|
|
|
—
|
|
|
(13)
|
|
Restructuring and
other charges
|
|
8
|
|
|
20
|
|
|
3
|
|
|
14
|
|
|
45
|
|
Depreciation and
amortization
|
|
12
|
|
|
110
|
|
|
3
|
|
|
34
|
|
|
159
|
|
Mark-to-market
share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
Total Adjusted
OIBDA
|
|
$
|
1,017
|
|
|
$
|
427
|
|
|
$
|
(4)
|
|
|
$
|
(164)
|
|
|
$
|
1,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCOVERY
COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
SELECTED FINANCIAL DETAIL
(unaudited; in millions, except per share amounts)
|
|
|
|
SELECTED TOTAL
COMPANY FINANCIAL METRICS - YEAR OVER YEAR GROWTH RATES REPORTED
AND EXCLUDING FOREIGN CURRENCY IMPACT
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
%
Change
(Reported)
|
|
%
Change
(ex-FX)(1)
|
Revenues
|
|
$
|
1,745
|
|
|
$
|
1,708
|
|
|
2
|
%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted
OIBDA(2)
|
|
$
|
717
|
|
|
$
|
702
|
|
|
2
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
DCI Net
Income
|
|
$
|
374
|
|
|
$
|
408
|
|
|
(8)
|
%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$
|
0.64
|
|
|
$
|
0.66
|
|
|
(3)
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted
EPS(2)
|
|
$
|
0.68
|
|
|
$
|
0.71
|
|
|
(4)
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow(2)
|
|
$
|
157
|
|
|
$
|
300
|
|
|
(48)
|
%
|
|
(37)
|
%
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
%
Change
(Reported)
|
|
%
Change
(ex-FX)(1)
|
Revenues
|
|
$
|
3,358
|
|
|
$
|
3,269
|
|
|
3
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted
OIBDA(2)
|
|
$
|
1,320
|
|
|
$
|
1,276
|
|
|
3
|
%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
DCI Net
Income
|
|
$
|
589
|
|
|
$
|
671
|
|
|
(12)
|
%
|
|
(6)
|
%
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$
|
1.01
|
|
|
$
|
1.08
|
|
|
(6)
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted
EPS(2)
|
|
$
|
1.09
|
|
|
$
|
1.17
|
|
|
(7)
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow(2)
|
|
$
|
365
|
|
|
$
|
347
|
|
|
5
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
(1) Refer to Page 6 for our methodology for calculating growth
rates excluding the impact of currency effects.
(2) See full definitions of Adjusted OIBDA, Adjusted EPS and Free
Cash Flow on page 5.
DISCOVERY
COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
SELECTED FINANCIAL DETAIL
(unaudited; in millions, except per share amounts)
|
|
|
|
SELECTED
INTERNATIONAL NETWORKS FINANCIAL METRICS - YEAR OVER YEAR GROWTH
RATES REPORTED AND EXCLUDING FOREIGN CURRENCY IMPACT
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
%
Change
(Reported)
|
|
%
Change
(ex-FX)(1)
|
Revenues
|
|
|
|
|
|
|
|
|
Distribution
|
|
$
|
457
|
|
|
$
|
427
|
|
|
7
|
%
|
|
7
|
%
|
Advertising
|
|
333
|
|
|
342
|
|
|
(3)
|
%
|
|
1
|
%
|
Other
|
|
21
|
|
|
21
|
|
|
—
|
%
|
|
(5)
|
%
|
Total
Revenues
|
|
$
|
811
|
|
|
$
|
790
|
|
|
3
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted
OIBDA(2)
|
|
$
|
236
|
|
|
$
|
245
|
|
|
(4)
|
%
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
%
Change
(Reported)
|
|
%
Change
(ex-FX)(1)
|
Revenues
|
|
|
|
|
|
|
|
|
Distribution
|
|
$
|
904
|
|
|
$
|
838
|
|
|
8
|
%
|
|
9
|
%
|
Advertising
|
|
615
|
|
|
627
|
|
|
(2)
|
%
|
|
2
|
%
|
Other
|
|
39
|
|
|
36
|
|
|
8
|
%
|
|
9
|
%
|
Total
Revenues
|
|
$
|
1,558
|
|
|
$
|
1,501
|
|
|
4
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted
OIBDA(2)
|
|
$
|
430
|
|
|
$
|
427
|
|
|
1
|
%
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Refer to Page 6 for our methodology for calculating growth
rates excluding the impact of currency effects.
(2) See full definitions of Adjusted OIBDA, Adjusted EPS and Free
Cash Flow on page 5.
DISCOVERY
COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
SELECTED FINANCIAL DETAIL
(unaudited; in millions, except per share amounts)
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Numerator:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
380
|
|
|
$
|
415
|
|
|
$
|
601
|
|
|
$
|
684
|
|
Less:
|
|
|
|
|
|
|
|
|
Allocation of
undistributed income to Series A convertible preferred
stock
|
|
(91)
|
|
|
(94)
|
|
|
(143)
|
|
|
(153)
|
|
Net income
attributable to noncontrolling interests
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Net income
attributable to redeemable noncontrolling interests
|
|
(6)
|
|
|
(6)
|
|
|
(12)
|
|
|
(12)
|
|
Net income available
to Discovery Communications, Inc. Series A, B and C common and
Series C convertible preferred stockholders for basic net income
per share
|
|
$
|
283
|
|
|
$
|
314
|
|
|
$
|
446
|
|
|
$
|
518
|
|
Allocation of net
income available to Discovery Communications Inc. Series A, B and C
common stockholders and Series C convertible preferred stockholders
for basic net income per share:
|
|
|
|
|
|
|
|
|
Series A, B and C
common stockholders
|
|
250
|
|
|
270
|
|
|
393
|
|
|
443
|
|
Series C convertible
preferred stockholders
|
|
33
|
|
|
44
|
|
|
53
|
|
|
75
|
|
Total
|
|
283
|
|
|
314
|
|
|
446
|
|
|
518
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Allocation of
undistributed income to Series A convertible preferred
stockholders
|
|
91
|
|
|
94
|
|
|
143
|
|
|
153
|
|
Net income available
to Discovery Communications, Inc. Series A, B and C common
stockholders for diluted net income per share
|
|
$
|
374
|
|
|
$
|
408
|
|
|
$
|
589
|
|
|
$
|
671
|
|
|
|
|
|
|
|
|
|
|
Denominator —
weighted average:
|
|
|
|
|
|
|
|
|
Series A, B and C
common shares outstanding — basic
|
|
384
|
|
|
404
|
|
|
387
|
|
|
409
|
|
Impact of assumed
preferred stock conversion
|
|
192
|
|
|
208
|
|
|
193
|
|
|
211
|
|
Dilutive effect of
share-based awards
|
|
2
|
|
|
4
|
|
|
3
|
|
|
3
|
|
Series A, B and C
common shares outstanding — diluted
|
|
578
|
|
|
616
|
|
|
583
|
|
|
623
|
|
Series C convertible
preferred stock outstanding — basic and diluted
|
|
25
|
|
|
33
|
|
|
26
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share available to Discovery Communications, Inc. Series A, B and C
common and Series C convertible preferred stockholders:
|
|
|
|
|
|
|
|
|
Series A, B and C
common stockholders
|
|
$
|
0.65
|
|
|
$
|
0.66
|
|
|
$
|
1.02
|
|
|
$
|
1.08
|
|
Series C convertible
preferred stockholders
|
|
$
|
1.30
|
|
|
$
|
1.33
|
|
|
$
|
2.04
|
|
|
$
|
2.16
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share available to Discovery Communications, Inc. Series A, B
and C common and Series C convertible preferred
stockholders:
|
|
|
|
|
|
|
|
|
Series A, B and C
common stockholders
|
|
$
|
0.64
|
|
|
$
|
0.66
|
|
|
$
|
1.01
|
|
|
$
|
1.08
|
|
Series C convertible
preferred stockholders
|
|
$
|
1.28
|
|
|
$
|
1.33
|
|
|
$
|
2.02
|
|
|
$
|
2.16
|
|
DISCOVERY
COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
SELECTED FINANCIAL DETAIL
(unaudited; in millions, except per share amounts)
|
|
|
|
|
|
CALCULATION OF
ADJUSTED EARNINGS PER DILUTED SHARE
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Diluted net income
per share available to Discovery Communications, Inc. Series A, B
and C common stockholders
|
|
$
|
0.64
|
|
|
$
|
0.66
|
|
|
$
|
(0.02)
|
|
|
$
|
1.01
|
|
|
$
|
1.08
|
|
|
$
|
(0.07)
|
|
Amortization of
acquisition-related intangible assets (gross) per share
|
|
0.06
|
|
|
0.06
|
|
|
—
|
|
|
0.12
|
|
|
0.12
|
|
|
—
|
|
Tax effect on
amortization of acquisition-related intangible assets per
share
|
|
(0.02)
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.04)
|
|
|
(0.03)
|
|
|
(0.01)
|
|
Adjusted earnings per
diluted share
|
|
$
|
0.68
|
|
|
$
|
0.71
|
|
|
$
|
(0.03)
|
|
|
$
|
1.09
|
|
|
$
|
1.17
|
|
|
$
|
(0.08)
|
|
CALCULATION OF
FREE CASH FLOW
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
Cash provided by
operating activities
|
|
$
|
188
|
|
|
$
|
328
|
|
|
$
|
(140)
|
|
|
(43)
|
%
|
Purchases of property
and equipment
|
|
(31)
|
|
|
(28)
|
|
|
(3)
|
|
|
11
|
%
|
Free cash
flow
|
|
$
|
157
|
|
|
$
|
300
|
|
|
$
|
(143)
|
|
|
(48)
|
%
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
Cash provided by
operating activities
|
|
$
|
443
|
|
|
$
|
390
|
|
|
$
|
53
|
|
|
14
|
%
|
Purchases of property
and equipment
|
|
(78)
|
|
|
(43)
|
|
|
(35)
|
|
|
81
|
%
|
Free cash
flow
|
|
$
|
365
|
|
|
$
|
347
|
|
|
$
|
18
|
|
|
5
|
%
|
DISCOVERY
COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
SELECTED FINANCIAL DETAIL
(unaudited; in millions, except per share amounts)
|
|
|
|
BORROWINGS
|
|
|
June 30,
2017
|
5.625% Senior notes,
semi-annual interest, due August 2019
|
$
|
411
|
|
5.05% Senior notes,
semi-annual interest, due June 2020
|
789
|
|
4.375% Senior notes,
semi-annual interest, due June 2021
|
650
|
|
2.375% Senior notes,
euro denominated, annual interest, due March 2022
|
342
|
|
3.30% Senior notes,
semi-annual interest, due May 2022
|
500
|
|
3.25% Senior notes,
semi-annual interest, due April 2023
|
350
|
|
3.80% Senior notes,
semi-annual interest, due March 2024
|
450
|
|
3.45% Senior notes,
semi-annual interest, due March 2025
|
300
|
|
4.90% Senior notes,
semi-annual interest, due March 2026
|
700
|
|
1.90% Senior notes,
euro denominated, annual interest, due March 2027
|
684
|
|
6.35% Senior notes,
semi-annual interest, due June 2040
|
850
|
|
4.95% Senior notes,
semi-annual interest, due May 2042
|
500
|
|
4.875% Senior notes,
semi-annual interest, due April 2043
|
850
|
|
Revolving credit
facility
|
700
|
|
Commercial
paper
|
73
|
|
Capital lease
obligations
|
172
|
|
Total debt
|
8,321
|
|
Unamortized discount
and debt issuance costs
|
(58)
|
|
Debt, net
|
8,263
|
|
Current portion of
debt
|
(105)
|
|
Noncurrent portion of
debt
|
$
|
8,158
|
|
SHARE COUNT ROLL
FORWARD
|
|
Common
|
|
Preferred
|
|
Total
|
(Basic shares, in
millions)
|
|
|
|
|
|
|
Total shares
outstanding as of December 31, 2016
|
|
389.7
|
|
97.8
|
|
487.5
|
Shares
repurchased
|
|
(14.3)
|
|
(2.3)
|
|
(16.6)
|
Shares issued –
share-based compensation
|
|
3.6
|
|
—
|
|
3.6
|
Total shares
outstanding as of June 30, 2017
|
|
379.0
|
|
95.5
|
|
474.5
|
View original
content:http://www.prnewswire.com/news-releases/discovery-communications-reports-second-quarter-2017-results-300496451.html
SOURCE Discovery Communications