Delaware | 35-2333914 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
Discovery, Inc. | ||||||
Date: November 8, 2018 | By: | /s/ Gunnar Wiedenfels | ||||
Gunnar Wiedenfels | ||||||
Chief Financial Officer | ||||||
(1) | The Transactions refer to the Company's acquisition of Scripps Networks on March 6, 2018, acquisition of a controlling interest in OWN on November 30, 2017 and the contribution of businesses from MTG on September 25, 2017. |
(2) | The Company sold a majority stake in the education business on April 30, 2018. |
(3) | Pro forma is defined as the results of the Company as if the Transactions had occurred on January 1, 2017. Refer to page 6 for the full list of pro forma adjustments and to page 11 for pro forma operating results. |
(4) | See full definitions of Adjusted OIBDA and Adjusted EPS on page 5. |
(5) | All per share amounts are calculated using DCI Net Income. Refer to table on page 21 for the full schedule. |
(dollars in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||
Revenues: | ||||||||||||||||||||||
U.S. Networks | $ | 1,674 | $ | 823 | NM | $ | 4,628 | $ | 2,542 | 82 | % | |||||||||||
International Networks | 916 | 796 | 15 | % | 3,065 | 2,354 | 30 | % | ||||||||||||||
Education and Other | 3 | 32 | (91 | )% | 52 | 113 | (54 | )% | ||||||||||||||
Corporate and Inter-Segment Eliminations | (1 | ) | — | NM | (1 | ) | — | NM | ||||||||||||||
Total revenues | $ | 2,592 | $ | 1,651 | 57 | % | $ | 7,744 | $ | 5,009 | 55 | % | ||||||||||
Adjusted OIBDA: | ||||||||||||||||||||||
U.S. Networks | $ | 901 | $ | 480 | 88 | % | $ | 2,536 | $ | 1,548 | 64 | % | ||||||||||
International Networks | 254 | 180 | 41 | % | 727 | 610 | 19 | % | ||||||||||||||
Education and Other | — | — | — | % | 3 | (1 | ) | NM | ||||||||||||||
Corporate and Inter-Segment Eliminations | (111 | ) | (85 | ) | (31 | )% | (311 | ) | (262 | ) | (19 | )% | ||||||||||
Total Adjusted OIBDA | $ | 1,044 | $ | 575 | 82 | % | $ | 2,955 | $ | 1,895 | 56 | % |
(dollars in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||
Revenues: | ||||||||||||||||||||||
Distribution | $ | 644 | $ | 402 | 60 | % | $ | 1,812 | $ | 1,210 | 50 | % | ||||||||||
Advertising | 991 | 407 | NM | 2,708 | 1,284 | NM | ||||||||||||||||
Other | 39 | 14 | NM | 108 | 48 | NM | ||||||||||||||||
Total revenues | $ | 1,674 | $ | 823 | NM | $ | 4,628 | $ | 2,542 | 82 | % | |||||||||||
Adjusted OIBDA | $ | 901 | $ | 480 | 88 | % | $ | 2,536 | $ | 1,548 | 64 | % |
(1) | Free cash flow is defined as cash provided by operating activities less purchases of property and equipment. |
NM: Not Meaningful |
(dollars in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||
Revenues: | ||||||||||||||||||||||
Distribution | $ | 508 | $ | 479 | 6 | % | $ | 1,577 | $ | 1,383 | 14 | % | ||||||||||
Advertising | 374 | 298 | 26 | % | 1,232 | 913 | 35 | % | ||||||||||||||
Other | 34 | 19 | 79 | % | 256 | 58 | NM | |||||||||||||||
Total revenues | $ | 916 | $ | 796 | 15 | % | $ | 3,065 | $ | 2,354 | 30 | % | ||||||||||
Adjusted OIBDA | $ | 254 | $ | 180 | 41 | % | $ | 727 | $ | 610 | 19 | % |
(dollars in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||
Revenues | $ | 3 | $ | 32 | (91 | )% | $ | 52 | $ | 113 | (54 | )% | ||||||||||
Adjusted OIBDA | $ | — | $ | — | — | % | $ | 3 | $ | (1 | ) | NM |
(1) | Discovery is unable to provide a reconciliation of the forward-looking guidance to GAAP measures as, at this time, Discovery cannot determine all of the adjustments that would be required. |
Media Contact | Investor Relations Contacts |
Catherine Frymark (240) 662-2934 | Andrew Slabin (212) 548-5544 |
catherine_frymark@discovery.com | andrew_slabin@discovery.com |
Jackie Burka (212) 548-5642 | |
jackie_burka@discovery.com |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues: | ||||||||||||||||
Distribution | $ | 1,152 | $ | 881 | $ | 3,389 | $ | 2,593 | ||||||||
Advertising | 1,365 | 705 | 3,940 | 2,197 | ||||||||||||
Other | 75 | 65 | 415 | 219 | ||||||||||||
Total revenues | 2,592 | 1,651 | 7,744 | 5,009 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Costs of revenues, excluding depreciation and amortization | 934 | 670 | 2,989 | 1,911 | ||||||||||||
Selling, general and administrative | 667 | 457 | 1,963 | 1,261 | ||||||||||||
Depreciation and amortization | 398 | 80 | 1,001 | 240 | ||||||||||||
Restructuring and other charges | 224 | 11 | 652 | 43 | ||||||||||||
(Gain) loss on disposition | — | — | (84 | ) | 4 | |||||||||||
Total costs and expenses | 2,223 | 1,218 | 6,521 | 3,459 | ||||||||||||
Operating income | 369 | 433 | 1,223 | 1,550 | ||||||||||||
Interest expense, net | (185 | ) | (136 | ) | (558 | ) | (318 | ) | ||||||||
Loss on extinguishment of debt | — | — | — | (54 | ) | |||||||||||
Income (loss) from equity investees, net | 9 | (27 | ) | (53 | ) | (122 | ) | |||||||||
Other expense, net | (15 | ) | (106 | ) | (84 | ) | (143 | ) | ||||||||
Income before income taxes | 178 | 164 | 528 | 913 | ||||||||||||
Income tax (expense) benefit | (43 | ) | 59 | (146 | ) | (89 | ) | |||||||||
Net income | 135 | 223 | 382 | 824 | ||||||||||||
Net income attributable to noncontrolling interests | (13 | ) | — | (41 | ) | — | ||||||||||
Net income attributable to redeemable noncontrolling interests | (5 | ) | (5 | ) | (16 | ) | (17 | ) | ||||||||
Net income available to Discovery, Inc. | $ | 117 | $ | 218 | $ | 325 | $ | 807 | ||||||||
Net income per share allocated to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||
Basic | $ | 0.16 | $ | 0.38 | $ | 0.47 | $ | 1.40 | ||||||||
Diluted(1) | $ | 0.16 | $ | 0.38 | $ | 0.47 | $ | 1.39 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 523 | 381 | 490 | 385 | ||||||||||||
Diluted(1) | 713 | 571 | 679 | 581 |
September 30, 2018 | December 31, 2017 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 531 | $ | 7,309 | ||||
Receivables, net | 2,578 | 1,838 | ||||||
Content rights, net | 349 | 410 | ||||||
Prepaid expenses and other current assets | 456 | 434 | ||||||
Total current assets | 3,914 | 9,991 | ||||||
Noncurrent content rights, net | 3,115 | 2,213 | ||||||
Property and equipment, net | 810 | 597 | ||||||
Goodwill, net | 13,139 | 7,073 | ||||||
Intangible assets, net | 10,040 | 1,770 | ||||||
Equity method investments, including note receivable | 1,015 | 335 | ||||||
Other noncurrent assets | 879 | 576 | ||||||
Total assets | $ | 32,912 | $ | 22,555 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 280 | $ | 277 | ||||
Accrued liabilities | 1,623 | 1,309 | ||||||
Deferred revenues | 304 | 255 | ||||||
Current portion of debt | 1,653 | 30 | ||||||
Total current liabilities | 3,860 | 1,871 | ||||||
Noncurrent portion of debt | 15,829 | 14,755 | ||||||
Deferred income taxes | 1,901 | 319 | ||||||
Other noncurrent liabilities | 1,089 | 587 | ||||||
Total liabilities | 22,679 | 17,532 | ||||||
Redeemable noncontrolling interests | 414 | 413 | ||||||
Equity: | ||||||||
Discovery, Inc. stockholders’ equity: | ||||||||
Series A-1 convertible preferred stock: $0.01 par value; 8 authorized; 8 shares issued | — | — | ||||||
Series C-1 convertible preferred stock: $0.01 par value; 6 authorized; 6 shares issued | — | — | ||||||
Series A common stock: $0.01 par value; 1,700 shares authorized; 159 and 157 shares issued | 1 | 1 | ||||||
Series B convertible common stock: $0.01 par value; 100 shares authorized; 7 shares issued | — | — | ||||||
Series C common stock: $0.01 par value; 2,000 shares authorized; 524 and 383 shares issued | 5 | 4 | ||||||
Additional paid-in capital | 10,627 | 7,295 | ||||||
Treasury stock, at cost | (6,737 | ) | (6,737 | ) | ||||
Retained earnings | 4,984 | 4,632 | ||||||
Accumulated other comprehensive loss | (764 | ) | (585 | ) | ||||
Total Discovery, Inc. stockholders' equity | 8,116 | 4,610 | ||||||
Noncontrolling interests | 1,703 | — | ||||||
Total equity | 9,819 | 4,610 | ||||||
Total liabilities and equity | $ | 32,912 | $ | 22,555 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Operating Activities | |||||||
Net income | $ | 382 | $ | 824 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Share-based compensation expense | 92 | 22 | |||||
Depreciation and amortization | 1,001 | 240 | |||||
Content rights amortization and impairment | 2,523 | 1,397 | |||||
(Gain) loss on disposition | (84 | ) | 4 | ||||
Equity in losses of equity method investee companies, net of cash distributions | 106 | 130 | |||||
Deferred income taxes | (140 | ) | (167 | ) | |||
Loss on extinguishment of debt | — | 54 | |||||
Realized loss from derivative instruments, net | — | 98 | |||||
Other, net | 54 | 74 | |||||
Changes in operating assets and liabilities, net of acquisitions and dispositions: | |||||||
Receivables, net | (19 | ) | (138 | ) | |||
Content rights and payables, net | (2,222 | ) | (1,400 | ) | |||
Accounts payable and accrued liabilities | (123 | ) | 23 | ||||
Income taxes receivable and prepaid income taxes | (53 | ) | 11 | ||||
Foreign currency and other, net | 130 | (5 | ) | ||||
Cash provided by operating activities | 1,647 | 1,167 | |||||
Investing Activities | |||||||
Business acquisitions, net of cash acquired | (8,565 | ) | (4 | ) | |||
Payments for investments, net | (56 | ) | (387 | ) | |||
Proceeds from dispositions, net of cash disposed | 107 | 29 | |||||
Proceeds from sale of assets previously held for sale | 68 | — | |||||
Purchases of property and equipment | (106 | ) | (103 | ) | |||
Distributions from equity method investees | 1 | 38 | |||||
Payments for derivative instruments, net | (3 | ) | (99 | ) | |||
Other investing activities, net | 5 | 3 | |||||
Cash used in investing activities | (8,549 | ) | (523 | ) | |||
Financing Activities | |||||||
Commercial paper borrowings (repayments), net | 293 | (48 | ) | ||||
Borrowings under revolving credit facility | — | 350 | |||||
Principal repayments of revolving credit facility | (100 | ) | (475 | ) | |||
Borrowings under term loan facilities | 2,000 | — | |||||
Principal repayments of term loans | (2,000 | ) | — | ||||
Borrowings from debt, net of discount and including premiums | — | 7,488 | |||||
Principal repayments of debt, including discount payment and premiums to par value | — | (650 | ) | ||||
Payments for bridge financing commitment fees | — | (40 | ) | ||||
Principal repayments of capital lease obligations | (37 | ) | (26 | ) | |||
Repurchases of stock | — | (603 | ) | ||||
Cash settlement of common stock repurchase contracts | — | 58 | |||||
Distributions to noncontrolling interests and redeemable noncontrolling interests | (59 | ) | (22 | ) | |||
Share-based plan proceeds, net | 44 | 15 | |||||
Borrowings under program financing line of credit | 23 | — | |||||
Other financing activities, net | (16 | ) | (64 | ) | |||
Cash provided by financing activities | 148 | 5,983 | |||||
Effect of exchange rate changes on cash and cash equivalents | (24 | ) | 67 | ||||
Net change in cash and cash equivalents | (6,778 | ) | 6,694 | ||||
Cash and cash equivalents, beginning of period | 7,309 | 300 | |||||
Cash and cash equivalents, end of period | $ | 531 | $ | 6,994 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | Pro Forma Ex-FX(2) | |||||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | % | |||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Distribution | $ | 1,152 | $ | 1 | $ | 1,153 | $ | 881 | $ | 270 | $ | 1,151 | $ | 271 | 31 | % | $ | 2 | — | % | 2 | % | |||||||||||||
Advertising | 1,365 | — | 1,365 | 705 | 623 | 1,328 | 660 | 94 | % | 37 | 3 | % | 4 | % | |||||||||||||||||||||
Other | 75 | — | 75 | 65 | 38 | 103 | 10 | 15 | % | (28 | ) | (27 | )% | (27 | )% | ||||||||||||||||||||
Total revenues | 2,592 | 1 | 2,593 | 1,651 | 931 | 2,582 | 941 | 57 | % | 11 | — | % | 2 | % | |||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | 934 | (1 | ) | 933 | 670 | 366 | 1,036 | 264 | 39 | % | (103 | ) | (10 | )% | (8 | )% | |||||||||||||||||||
Selling, general and administrative | 614 | 1 | 615 | 406 | 245 | 651 | 208 | 51 | % | (36 | ) | (6 | )% | (4 | )% | ||||||||||||||||||||
Adjusted OIBDA(3) | $ | 1,044 | $ | 1 | $ | 1,045 | $ | 575 | $ | 320 | $ | 895 | 469 | 82 | % | 150 | 17 | % | 18 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Operating income | 369 | 69 | 438 | 433 | 65 | 498 | $ | (64 | ) | (15 | )% | $ | (60 | ) | (12 | )% | ||||||||||||||||
Restructuring and other charges | 224 | — | 224 | 11 | — | 11 | 213 | NM | 213 | NM | ||||||||||||||||||||||
Depreciation and amortization | 398 | (70 | ) | 328 | 80 | 311 | 391 | 318 | NM | (63 | ) | (16 | )% | |||||||||||||||||||
Mark-to-market share-based compensation | 27 | 1 | 28 | (11 | ) | 4 | (7 | ) | 38 | NM | 35 | NM | ||||||||||||||||||||
Scripps Networks transaction and integration costs | 26 | — | 26 | 62 | (60 | ) | 2 | (36 | ) | (58 | )% | 24 | NM | |||||||||||||||||||
Inter-segment eliminations | — | 1 | 1 | — | — | — | — | NM | 1 | NM | ||||||||||||||||||||||
Adjusted OIBDA(3) | $ | 1,044 | $ | 1 | $ | 1,045 | $ | 575 | $ | 320 | $ | 895 | 469 | 82 | % | 150 | 17 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Distribution | $ | 644 | $ | 1 | $ | 645 | $ | 402 | $ | 240 | $ | 642 | $ | 242 | 60 | % | $ | 3 | — | % | ||||||||||||
Advertising | 991 | (1 | ) | 990 | 407 | 534 | 941 | 584 | NM | 49 | 5 | % | ||||||||||||||||||||
Other | 39 | 1 | 40 | 14 | 20 | 34 | 25 | NM | 6 | 18 | % | |||||||||||||||||||||
Total revenues | 1,674 | 1 | 1,675 | 823 | 794 | 1,617 | 851 | NM | 58 | 4 | % | |||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | (486 | ) | — | (486 | ) | (226 | ) | (292 | ) | (518 | ) | (260 | ) | NM | 32 | 6 | % | |||||||||||||||
Selling, general and administrative | (287 | ) | — | (287 | ) | (117 | ) | (183 | ) | (300 | ) | (170 | ) | NM | 13 | 4 | % | |||||||||||||||
Adjusted OIBDA(2) | 901 | 1 | 902 | 480 | 319 | 799 | 421 | 88 | % | 103 | 13 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Operating income | $ | 399 | $ | 70 | $ | 469 | $ | 469 | $ | 41 | $ | 510 | $ | (70 | ) | (15 | )% | $ | (41 | ) | (8 | )% | ||||||||||
Depreciation and amortization | 296 | (69 | ) | 227 | 7 | 284 | 291 | 289 | NM | (64 | ) | (22 | )% | |||||||||||||||||||
Restructuring and other charges | 206 | — | 206 | 2 | — | 2 | 204 | NM | 204 | NM | ||||||||||||||||||||||
Scripps Networks transaction and integration costs | 3 | — | 3 | — | — | — | 3 | NM | 3 | NM | ||||||||||||||||||||||
Inter-segment eliminations | (3 | ) | — | (3 | ) | 2 | (6 | ) | (4 | ) | (5 | ) | NM | 1 | 25 | % | ||||||||||||||||
Adjusted OIBDA(2) | 901 | 1 | 902 | 480 | 319 | 799 | 421 | 88 | % | 103 | 13 | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | Pro Forma Ex-FX(2) | |||||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | % | |||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Distribution | $ | 508 | $ | — | $ | 508 | $ | 479 | $ | 30 | $ | 509 | $ | 29 | 6 | % | $ | (1 | ) | — | % | 3 | % | ||||||||||||
Advertising | 374 | 1 | 375 | 298 | 89 | 387 | 76 | 26 | % | (12 | ) | (3 | )% | 2 | % | ||||||||||||||||||||
Other | 34 | (1 | ) | 33 | 19 | 18 | 37 | 15 | 79 | % | (4 | ) | (11 | )% | (11 | )% | |||||||||||||||||||
Total revenues | 916 | — | 916 | 796 | 137 | 933 | 120 | 15 | % | (17 | ) | (2 | )% | 2 | % | ||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | (449 | ) | 1 | (448 | ) | (433 | ) | (73 | ) | (506 | ) | (16 | ) | (4 | )% | 58 | 11 | % | 7 | % | |||||||||||||||
Selling, general and administrative | (213 | ) | (1 | ) | (214 | ) | (183 | ) | (38 | ) | (221 | ) | (30 | ) | (16 | )% | 7 | 3 | % | — | % | ||||||||||||||
Adjusted OIBDA(3) | 254 | — | 254 | 180 | 26 | 206 | 74 | 41 | % | 48 | 23 | % | 27 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Operating income | $ | 146 | $ | — | $ | 146 | $ | 117 | $ | (9 | ) | $ | 108 | $ | 29 | 25 | % | $ | 38 | 35 | % | |||||||||||
Depreciation and amortization | 82 | — | 82 | 56 | 26 | 82 | 26 | 46 | % | — | — | % | ||||||||||||||||||||
Restructuring and other charges | 16 | — | 16 | 7 | — | 7 | 9 | NM | 9 | NM | ||||||||||||||||||||||
Scripps Networks transaction and integration costs | 3 | — | 3 | — | — | — | 3 | NM | 3 | NM | ||||||||||||||||||||||
Inter-segment eliminations | 7 | — | 7 | — | 9 | 9 | 7 | NM | (2 | ) | (22 | )% | ||||||||||||||||||||
Adjusted OIBDA(3) | 254 | — | 254 | 180 | 26 | 206 | 74 | 41 | % | 48 | 23 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Revenues: | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | $ | (1 | ) | NM | $ | (1 | ) | NM | ||||||||||
Costs of revenues, excluding depreciation and amortization | 1 | — | $ | 1 | — | (1 | ) | (1 | ) | 1 | NM | 2 | NM | |||||||||||||||||||
Selling, general and administrative | (111 | ) | — | (111 | ) | (85 | ) | (24 | ) | (109 | ) | (26 | ) | (31 | )% | (2 | ) | (2 | )% | |||||||||||||
Adjusted OIBDA(2) | (111 | ) | — | (111 | ) | (85 | ) | (25 | ) | (110 | ) | (26 | ) | (31 | )% | (1 | ) | (1 | )% |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Operating (loss) | $ | (177 | ) | $ | (1 | ) | $ | (178 | ) | $ | (151 | ) | $ | 33 | $ | (118 | ) | $ | (26 | ) | (17 | )% | $ | (60 | ) | (51 | )% | |||||
Mark-to-market share-based compensation | 27 | 1 | 28 | (11 | ) | 4 | (7 | ) | 38 | NM | 35 | NM | ||||||||||||||||||||
Depreciation and amortization | 20 | (1 | ) | 19 | 15 | 1 | 16 | 5 | 33 | % | 3 | 19 | % | |||||||||||||||||||
Restructuring and other charges | 2 | — | 2 | — | — | — | 2 | NM | 2 | NM | ||||||||||||||||||||||
Scripps Networks transaction and integration costs | 20 | — | 20 | 62 | (60 | ) | 2 | (42 | ) | (68 | )% | 18 | NM | |||||||||||||||||||
Inter-segment eliminations | (3 | ) | 1 | (2 | ) | — | (3 | ) | (3 | ) | (3 | ) | NM | 1 | 33 | % | ||||||||||||||||
Adjusted OIBDA(2) | (111 | ) | — | (111 | ) | (85 | ) | (25 | ) | (110 | ) | (26 | ) | (31 | )% | (1 | ) | (1 | )% |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | Pro Forma Ex-FX(3) | |||||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | % | |||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Distribution | $ | 3,389 | $ | 178 | $ | 3,567 | $ | 2,593 | $ | 825 | $ | 3,418 | $ | 796 | 31 | % | $ | 149 | 4 | % | 3 | % | |||||||||||||
Advertising | 3,940 | 426 | 4,366 | $ | 2,197 | 1,980 | 4,177 | 1,743 | 79 | % | 189 | 5 | % | 3 | % | ||||||||||||||||||||
Other | 415 | 19 | 434 | 219 | 106 | 325 | 196 | 89 | % | 109 | 34 | % | 30 | % | |||||||||||||||||||||
Total revenues | 7,744 | 623 | 8,367 | 5,009 | 2,911 | 7,920 | 2,735 | 55 | % | 447 | 6 | % | 4 | % | |||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | 2,989 | 204 | 3,193 | 1,911 | 1,008 | 2,919 | 1,078 | 56 | % | 274 | 9 | % | 8 | % | |||||||||||||||||||||
Selling, general and administrative | 1,800 | 160 | 1,960 | 1,203 | 769 | 1,972 | 597 | 50 | % | (12 | ) | (1 | )% | (3 | )% | ||||||||||||||||||||
Adjusted OIBDA(4) | 2,955 | 259 | 3,214 | 1,895 | 1,134 | 3,029 | 1,060 | 56 | % | 185 | 6 | % | 6 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||
Operating income | 1,223 | 282 | 1,505 | 1,550 | 256 | 1,806 | (327 | ) | (21 | )% | (301 | ) | (17 | )% | ||||||||||
Restructuring and other charges | 652 | 10 | 662 | 43 | — | 43 | 609 | NM | 619 | NM | ||||||||||||||
Depreciation and amortization | 1,001 | (6 | ) | 995 | 240 | 933 | 1,173 | 761 | NM | (178 | ) | (15 | )% | |||||||||||
Mark-to-market share-based compensation | 56 | 1 | 57 | (4 | ) | 5 | 1 | 60 | NM | 56 | NM | |||||||||||||
Scripps Networks transaction and integration costs | 107 | (28 | ) | 79 | 62 | (60 | ) | 2 | 45 | 73 | % | 77 | NM | |||||||||||
(Gain) loss on disposition | (84 | ) | — | (84 | ) | 4 | — | 4 | (88 | ) | NM | (88 | ) | NM | ||||||||||
Adjusted OIBDA(4) | 2,955 | 259 | 3,214 | 1,895 | 1,134 | 3,029 | 1,060 | 56 | % | 185 | 6 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Distribution | $ | 1,812 | $ | 156 | $ | 1,968 | $ | 1,210 | $ | 740 | $ | 1,950 | $ | 602 | 50 | % | $ | 18 | 1 | % | ||||||||||||
Advertising | 2,708 | 356 | 3,064 | 1,284 | 1,702 | 2,986 | 1,424 | NM | 78 | 3 | % | |||||||||||||||||||||
Other | 108 | 7 | 115 | 48 | 63 | 111 | 60 | NM | 4 | 4 | % | |||||||||||||||||||||
Total revenues | 4,628 | 519 | 5,147 | 2,542 | 2,505 | 5,047 | 2,086 | 82 | % | 100 | 2 | % | ||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | (1,297 | ) | (152 | ) | (1,449 | ) | (652 | ) | (802 | ) | (1,454 | ) | (645 | ) | (99 | )% | 5 | — | % | |||||||||||||
Selling, general and administrative | (795 | ) | (111 | ) | (906 | ) | (342 | ) | (587 | ) | (929 | ) | (453 | ) | NM | 23 | 2 | % | ||||||||||||||
Adjusted OIBDA(3) | 2,536 | 256 | 2,792 | 1,548 | 1,116 | 2,664 | 988 | 64 | % | 128 | 5 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Operating income | $ | 1,581 | $ | 279 | $ | 1,860 | $ | 1,511 | $ | 287 | $ | 1,798 | $ | 70 | 5 | % | $ | 62 | 3 | % | ||||||||||||
Mark-to-market share-based compensation | — | — | — | — | (2 | ) | (2 | ) | — | NM | 2 | NM | ||||||||||||||||||||
Depreciation and amortization | 691 | (25 | ) | 666 | 21 | 852 | 873 | 670 | NM | (207 | ) | (24 | )% | |||||||||||||||||||
Restructuring and other charges | 259 | 6 | 265 | 6 | — | 6 | 253 | NM | 259 | NM | ||||||||||||||||||||||
Scripps Networks transaction and integration costs | 7 | — | 7 | — | — | — | 7 | NM | 7 | NM | ||||||||||||||||||||||
Inter-segment eliminations | (2 | ) | (4 | ) | (6 | ) | 10 | (21 | ) | (11 | ) | (12 | ) | NM | 5 | 45 | % | |||||||||||||||
Adjusted OIBDA(3) | 2,536 | 256 | 2,792 | 1,548 | 1,116 | 2,664 | 988 | 64 | % | 128 | 5 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | Pro Forma Ex-FX(3) | |||||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | % | |||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Distribution | $ | 1,577 | $ | 22 | $ | 1,599 | $ | 1,383 | $ | 85 | $ | 1,468 | $ | 194 | 14 | % | $ | 131 | 9 | % | 6 | % | |||||||||||||
Advertising | 1,232 | 70 | 1,302 | 913 | 278 | 1,191 | 319 | 35 | % | 111 | 9 | % | 5 | % | |||||||||||||||||||||
Other | 256 | 12 | 268 | 58 | 43 | 101 | 198 | NM | 167 | NM | NM | ||||||||||||||||||||||||
Total revenues | 3,065 | 104 | 3,169 | 2,354 | 406 | 2,760 | 711 | 30 | % | 409 | 15 | % | 11 | % | |||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | (1,675 | ) | (52 | ) | (1,727 | ) | (1,214 | ) | (205 | ) | (1,419 | ) | (461 | ) | (38 | )% | (308 | ) | (22 | )% | (18 | )% | |||||||||||||
Selling, general and administrative | (663 | ) | (27 | ) | (690 | ) | (530 | ) | (107 | ) | (637 | ) | (133 | ) | (25 | )% | (53 | ) | (8 | )% | (2 | )% | |||||||||||||
Adjusted OIBDA(4) | 727 | 25 | 752 | 610 | 94 | 704 | 117 | 19 | % | 48 | 7 | % | 5 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Operating income | $ | 217 | $ | 1 | $ | 218 | $ | 417 | $ | (6 | ) | $ | 411 | $ | (200 | ) | (48 | )% | $ | (193 | ) | (47 | )% | |||||||||
Depreciation and amortization | 232 | 19 | 251 | 165 | 79 | 244 | 67 | 41 | % | 7 | 3 | % | ||||||||||||||||||||
Restructuring and other charges | 262 | 2 | 264 | 28 | — | 28 | 234 | NM | 236 | NM | ||||||||||||||||||||||
Scripps Networks transaction and integration costs | 3 | — | 3 | — | — | — | 3 | NM | 3 | NM | ||||||||||||||||||||||
Inter-segment eliminations | 13 | 3 | 16 | — | 21 | 21 | 13 | NM | (5 | ) | (24 | )% | ||||||||||||||||||||
Adjusted OIBDA(4) | 727 | 25 | 752 | 610 | 94 | 704 | 117 | 19 | % | 48 | 7 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||
Revenues: | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | (1 | ) | NM | (1 | ) | NM | ||||||||||
Costs of revenues, excluding depreciation and amortization | — | — | — | (1 | ) | (1 | ) | (2 | ) | 1 | NM | 2 | NM | |||||||||||||||||
Selling, general and administrative | (310 | ) | (22 | ) | (332 | ) | (261 | ) | (75 | ) | (336 | ) | (49 | ) | (19 | )% | 4 | 1 | % | |||||||||||
Adjusted OIBDA(3) | (311 | ) | (22 | ) | (333 | ) | (262 | ) | (76 | ) | (338 | ) | (49 | ) | (19 | )% | 5 | 1 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2018 | 2017 | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||
Actual | Pro Forma Adjustments | Pro Forma Combined | Actual | Pro Forma Adjustments | Pro Forma Combined | $ | % | $ | % | |||||||||||||||||||||||
Operating (loss) | $ | (666 | ) | $ | 2 | $ | (664 | ) | $ | (376 | ) | $ | (25 | ) | $ | (401 | ) | $ | (290 | ) | (77 | )% | $ | (263 | ) | (66 | )% | |||||
Mark-to-market share-based compensation | 56 | 1 | 57 | (4 | ) | 7 | 3 | 60 | NM | 54 | NM | |||||||||||||||||||||
Depreciation and amortization | 75 | — | 75 | 50 | 2 | 52 | 25 | 50 | % | 23 | 44 | % | ||||||||||||||||||||
Restructuring and other charges | 130 | 2 | 132 | 6 | — | 6 | 124 | NM | 126 | NM | ||||||||||||||||||||||
Scripps Networks transaction and integration costs | 97 | (28 | ) | 69 | 62 | (60 | ) | 2 | 35 | 56 | % | 67 | NM | |||||||||||||||||||
Inter-segment eliminations | (3 | ) | 1 | (2 | ) | — | — | — | (3 | ) | NM | (2 | ) | NM | ||||||||||||||||||
Adjusted OIBDA(3) | (311 | ) | (22 | ) | (333 | ) | (262 | ) | (76 | ) | (338 | ) | (49 | ) | (19 | )% | 5 | 1 | % |
Three Months Ended September 30, 2018 | |||||||||||||||||
U.S. Networks | International Networks | Education and Other | Corporate and Inter-Segment Eliminations | Total | |||||||||||||
Net income available to Discovery, Inc. | $ | 117 | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | 5 | ||||||||||||||||
Net income attributable to noncontrolling interests | 13 | ||||||||||||||||
Income tax expense | 43 | ||||||||||||||||
Other expense, net | 15 | ||||||||||||||||
(Income) from equity investees, net | (9 | ) | |||||||||||||||
Interest expense, net | 185 | ||||||||||||||||
Operating income | 399 | 146 | 1 | (177 | ) | 369 | |||||||||||
Restructuring and other charges | 206 | 16 | — | 2 | 224 | ||||||||||||
Depreciation and amortization | 296 | 82 | — | 20 | 398 | ||||||||||||
Mark-to-market share-based compensation | — | — | — | 27 | 27 | ||||||||||||
Scripps Networks transaction and integration costs | 3 | 3 | — | 20 | 26 | ||||||||||||
Inter-segment eliminations | (3 | ) | 7 | (1 | ) | (3 | ) | — | |||||||||
Total Adjusted OIBDA | 901 | 254 | $ | — | (111 | ) | $ | 1,044 |
Three Months Ended September 30, 2017 | ||||||||||||||||
U.S. Networks | International Networks | Education and Other | Corporate and Inter-Segment Eliminations | Total | ||||||||||||
Net income available to Discovery, Inc. | $ | 218 | ||||||||||||||
Net income attributable to redeemable noncontrolling interests | 5 | |||||||||||||||
Income tax (benefit) | (59 | ) | ||||||||||||||
Other expense, net | 106 | |||||||||||||||
Loss from equity investees, net | 27 | |||||||||||||||
Interest expense, net | 136 | |||||||||||||||
Operating income | 469 | 117 | (2 | ) | (151 | ) | 433 | |||||||||
Restructuring and other charges | 2 | 7 | 2 | — | 11 | |||||||||||
Depreciation and amortization | 7 | 56 | 2 | 15 | 80 | |||||||||||
Mark-to-market share-based compensation | — | — | — | (11 | ) | (11 | ) | |||||||||
Scripps Networks transaction and integration costs | — | — | — | 62 | 62 | |||||||||||
Inter-segment eliminations | 2 | — | (2 | ) | — | — | ||||||||||
Total Adjusted OIBDA | 480 | 180 | — | (85 | ) | $ | 575 |
Nine Months Ended September 30, 2018 | |||||||||||||||||
U.S. Networks | International Networks | Education and Other | Corporate and Inter-Segment Eliminations | Total | |||||||||||||
Net income available to Discovery, Inc. | $ | 325 | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | 16 | ||||||||||||||||
Net income attributable to noncontrolling interests | 41 | ||||||||||||||||
Income tax expense | 146 | ||||||||||||||||
Other expense, net | 84 | ||||||||||||||||
Loss from equity investees, net | 53 | ||||||||||||||||
Interest expense | 558 | ||||||||||||||||
Operating income | 1,581 | 217 | 91 | (666 | ) | 1,223 | |||||||||||
Restructuring and other charges | 259 | 262 | 1 | 130 | 652 | ||||||||||||
Depreciation and amortization | 691 | 232 | 3 | 75 | 1,001 | ||||||||||||
Mark-to-market share-based compensation | — | — | — | 56 | 56 | ||||||||||||
Scripps Networks transaction and integration costs | 7 | 3 | — | 97 | 107 | ||||||||||||
(Gain) on disposition | — | — | (84 | ) | — | (84 | ) | ||||||||||
Inter-segment eliminations | (2 | ) | 13 | $ | (8 | ) | (3 | ) | — | ||||||||
Total Adjusted OIBDA | 2,536 | 727 | $ | 3 | (311 | ) | $ | 2,955 |
Nine Months Ended September 30, 2017 | |||||||||||||||||
U.S. Networks | International Networks | Education and Other | Corporate and Inter-Segment Eliminations | Total | |||||||||||||
Net income available to Discovery, Inc. | $ | 807 | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | 17 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | ||||||||||||||||
Income tax expense | 89 | ||||||||||||||||
Other expense, net | 143 | ||||||||||||||||
Loss from equity investees, net | 122 | ||||||||||||||||
Loss on extinguishment of debt | 54 | ||||||||||||||||
Interest expense | 318 | ||||||||||||||||
Operating income | 1,511 | 417 | (2 | ) | (376 | ) | 1,550 | ||||||||||
Restructuring and other charges | 6 | 28 | 3 | 6 | 43 | ||||||||||||
Depreciation and amortization | 21 | 165 | 4 | 50 | 240 | ||||||||||||
Mark-to-market share-based compensation | — | — | — | (4 | ) | (4 | ) | ||||||||||
Scripps Networks transaction and integration costs | — | — | — | 62 | 62 | ||||||||||||
Loss on disposition | — | — | 4 | — | 4 | ||||||||||||
Inter-segment eliminations | 10 | — | (10 | ) | — | — | |||||||||||
Total Adjusted OIBDA | 1,548 | 610 | (1 | ) | $ | (262 | ) | $ | 1,895 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 135 | $ | 223 | $ | 382 | $ | 824 | ||||||||
Less: | ||||||||||||||||
Allocation of undistributed income to Series A-1 convertible preferred stock | (12 | ) | (27 | ) | (34 | ) | (99 | ) | ||||||||
Net income attributable to noncontrolling interests | (13 | ) | — | (41 | ) | — | ||||||||||
Net income attributable to redeemable noncontrolling interests | (5 | ) | (5 | ) | (16 | ) | (17 | ) | ||||||||
Redeemable noncontrolling interest adjustments to redemption value | — | — | (6 | ) | — | |||||||||||
Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | $ | 105 | $ | 191 | $ | 285 | $ | 708 | ||||||||
Allocation of net income to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: | ||||||||||||||||
Series A, B and C common stockholders | 86 | 146 | 231 | 539 | ||||||||||||
Series C-1 convertible preferred stockholders | 19 | 45 | 54 | 169 | ||||||||||||
Total | 105 | 191 | 285 | 708 | ||||||||||||
Add: | ||||||||||||||||
Allocation of undistributed income to Series A-1 convertible preferred stockholders | 12 | 27 | 34 | 99 | ||||||||||||
Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share | $ | 117 | $ | 218 | $ | 319 | $ | 807 | ||||||||
Denominator — weighted average: | ||||||||||||||||
Series A, B and C common shares outstanding — basic | 523 | 381 | 490 | 385 | ||||||||||||
Impact of assumed preferred stock conversion | 187 | 189 | 187 | 194 | ||||||||||||
Dilutive effect of share-based awards | 3 | 1 | 2 | 2 | ||||||||||||
Series A, B and C common shares outstanding — diluted | 713 | 571 | 679 | 581 | ||||||||||||
Series C-1 convertible preferred stock outstanding — basic and diluted | 6 | 6 | 6 | 6 | ||||||||||||
Basic net income per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: | ||||||||||||||||
Series A, B and C common stockholders | $ | 0.16 | $ | 0.38 | $ | 0.47 | $ | 1.40 | ||||||||
Series C-1 convertible preferred stockholders | $ | 3.19 | $ | 7.41 | $ | 9.13 | $ | 27.06 | ||||||||
Diluted net income per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: | ||||||||||||||||
Series A, B and C common stockholders | $ | 0.16 | $ | 0.38 | $ | 0.47 | $ | 1.39 | ||||||||
Series C-1 convertible preferred stockholders | $ | 3.18 | $ | 7.40 | $ | 9.10 | $ | 26.96 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||
Diluted net income per share available to Discovery, Inc. Series A, B and C common stockholders | $ | 0.16 | $ | 0.38 | $ | (0.22 | ) | $ | 0.47 | $ | 1.39 | $ | (0.92 | ) | ||||||||||
Per share impact of amortization of acquisition-related intangible assets, net of tax | 0.36 | 0.05 | 0.31 | 0.89 | 0.13 | 0.76 | ||||||||||||||||||
Adjusted earnings per diluted share | $ | 0.52 | $ | 0.43 | $ | 0.09 | $ | 1.36 | $ | 1.52 | $ | (0.16 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | Change | % Change | 2018 | 2017 | Change | % Change | |||||||||||||||||||||||
Cash provided by operating activities | 931 | $ | 724 | $ | 207 | 29 | % | $ | 1,647 | $ | 1,167 | $ | 480 | 41 | % | |||||||||||||||
Purchases of property and equipment | (24 | ) | (25 | ) | 1 | 4 | % | (106 | ) | (103 | ) | (3 | ) | (3 | )% | |||||||||||||||
Free cash flow | $ | 907 | $ | 699 | $ | 208 | 30 | % | $ | 1,541 | $ | 1,064 | $ | 477 | 45 | % |
September 30, 2018 | December 31, 2017 | ||||||
5.625% Senior notes, semi-annual interest, due August 2019 | $ | 411 | $ | 411 | |||
2.200% Senior notes, semi-annual interest, due September 2019 | 500 | 500 | |||||
Floating rate notes, quarterly interest, due September 2019 | 400 | 400 | |||||
2.750% Senior notes, semi-annual interest, due November 2019 | 500 | — | |||||
2.800% Senior notes, semi-annual interest, due June 2020 | 600 | — | |||||
5.050% Senior notes, semi-annual interest, due June 2020 | 789 | 789 | |||||
4.375% Senior notes, semi-annual interest, due June 2021 | 650 | 650 | |||||
2.375% Senior notes, euro denominated, annual interest, due March 2022 | 350 | 358 | |||||
3.300% Senior notes, semi-annual interest, due May 2022 | 500 | 500 | |||||
3.500% Senior notes, semi-annual interest, due June 2022 | 400 | — | |||||
2.950% Senior notes, semi-annual interest, due March 2023 | 1,200 | 1,200 | |||||
3.250% Senior notes, semi-annual interest, due April 2023 | 350 | 350 | |||||
3.800% Senior notes, semi-annual interest, due March 2024 | 450 | 450 | |||||
2.500% Senior notes, sterling denominated, annual interest, due September 2024 | 525 | 538 | |||||
3.900% Senior notes, semi-annual interest, due November 2024 | 500 | — | |||||
3.450% Senior notes, semi-annual interest, due March 2025 | 300 | 300 | |||||
3.950% Senior notes, semi-annual interest, due June 2025 | 500 | — | |||||
4.900% Senior notes, semi-annual interest, due March 2026 | 700 | 700 | |||||
1.900% Senior notes, euro denominated, annual interest, due March 2027 | 700 | 717 | |||||
3.950% Senior notes, semi-annual interest, due March 2028 | 1,700 | 1,700 | |||||
5.000% Senior notes, semi-annual interest, due September 2037 | 1,250 | 1,250 | |||||
6.350% Senior notes, semi-annual interest, due June 2040 | 850 | 850 | |||||
4.950% Senior notes, semi-annual interest, due May 2042 | 500 | 500 | |||||
4.875% Senior notes, semi-annual interest, due April 2043 | 850 | 850 | |||||
5.200% Senior notes, semi-annual interest, due September 2047 | 1,250 | 1,250 | |||||
Revolving credit facility | 325 | 425 | |||||
Commercial paper | 297 | — | |||||
Program financing line of credit | 23 | — | |||||
Capital lease obligations | 245 | 225 | |||||
Total debt | 17,615 | 14,913 | |||||
Unamortized discount, premium and debt issuance costs, net | (133 | ) | (128 | ) | |||
Debt, net of unamortized discount, premium and debt issuance costs | 17,482 | 14,785 | |||||
Current portion of debt | (1,653 | ) | (30 | ) | |||
Noncurrent portion of debt | $ | 15,829 | $ | 14,755 |
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