x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2018 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
DELAWARE | 20-3515052 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Class of Stock | Shares Outstanding as of July 31, 2018 | ||
Class A common stock, par value $0.001 per share | 49,430,905 | ||
Class B common stock, par value $0.001 per share | 353,433,073 |
Page | ||
Consolidated Statements of Earnings for the quarter and nine months ended June 30, 2018 and 2017 | ||
Consolidated Statements of Comprehensive Income for the quarter and nine months ended June 30, 2018 and 2017 | ||
Consolidated Balance Sheets as of June 30, 2018 and September 30, 2017 | ||
Consolidated Statements of Cash Flows for the nine months ended June 30, 2018 and 2017 | ||
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
(in millions, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues | $ | 3,237 | $ | 3,364 | $ | 9,458 | $ | 9,944 | |||||||
Expenses: | |||||||||||||||
Operating | 1,681 | 1,788 | 4,925 | 5,551 | |||||||||||
Selling, general and administrative | 738 | 756 | 2,249 | 2,205 | |||||||||||
Depreciation and amortization | 51 | 53 | 159 | 167 | |||||||||||
Restructuring and related costs | 15 | 21 | 200 | 237 | |||||||||||
Total expenses | 2,485 | 2,618 | 7,533 | 8,160 | |||||||||||
Operating income | 752 | 746 | 1,925 | 1,784 | |||||||||||
Interest expense, net | (138 | ) | (155 | ) | (428 | ) | (469 | ) | |||||||
Equity in net earnings of investee companies | 2 | 47 | 5 | 78 | |||||||||||
Gain on sale of EPIX | — | 285 | — | 285 | |||||||||||
Other items, net | (9 | ) | (2 | ) | (15 | ) | (37 | ) | |||||||
Earnings from continuing operations before provision for income taxes | 607 | 921 | 1,487 | 1,641 | |||||||||||
Provision for income taxes | (93 | ) | (233 | ) | (158 | ) | (417 | ) | |||||||
Net earnings from continuing operations | 514 | 688 | 1,329 | 1,224 | |||||||||||
Discontinued operations, net of tax | 11 | 3 | 23 | 3 | |||||||||||
Net earnings (Viacom and noncontrolling interests) | 525 | 691 | 1,352 | 1,227 | |||||||||||
Net earnings attributable to noncontrolling interests | (3 | ) | (8 | ) | (27 | ) | (27 | ) | |||||||
Net earnings attributable to Viacom | $ | 522 | $ | 683 | $ | 1,325 | $ | 1,200 | |||||||
Amounts attributable to Viacom: | |||||||||||||||
Net earnings from continuing operations | $ | 511 | $ | 680 | $ | 1,302 | $ | 1,197 | |||||||
Discontinued operations, net of tax | 11 | 3 | 23 | 3 | |||||||||||
Net earnings attributable to Viacom | $ | 522 | $ | 683 | $ | 1,325 | $ | 1,200 | |||||||
Basic earnings per share attributable to Viacom: | |||||||||||||||
Continuing operations | $ | 1.27 | $ | 1.69 | $ | 3.23 | $ | 3.00 | |||||||
Discontinued operations | 0.03 | 0.01 | 0.06 | 0.01 | |||||||||||
Net earnings | $ | 1.30 | $ | 1.70 | $ | 3.29 | $ | 3.01 | |||||||
Diluted earnings per share attributable to Viacom: | |||||||||||||||
Continuing operations | $ | 1.27 | $ | 1.69 | $ | 3.23 | $ | 2.99 | |||||||
Discontinued operations | 0.02 | 0.01 | 0.06 | 0.01 | |||||||||||
Net earnings | $ | 1.29 | $ | 1.70 | $ | 3.29 | $ | 3.00 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 402.8 | 402.0 | 402.6 | 399.1 | |||||||||||
Diluted | 403.3 | 402.6 | 402.9 | 400.0 | |||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | |||||||
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
(in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net earnings (Viacom and noncontrolling interests) | $ | 525 | $ | 691 | $ | 1,352 | $ | 1,227 | |||||||
Other comprehensive income/(loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | (228 | ) | 59 | (175 | ) | (16 | ) | ||||||||
Defined benefit pension plans | 1 | 1 | 4 | 4 | |||||||||||
Cash flow hedges | (3 | ) | 5 | (3 | ) | 7 | |||||||||
Available-for-sale securities | 9 | — | 22 | — | |||||||||||
Other comprehensive income/(loss) (Viacom and noncontrolling interests) | (221 | ) | 65 | (152 | ) | (5 | ) | ||||||||
Comprehensive income | 304 | 756 | 1,200 | 1,222 | |||||||||||
Less: Comprehensive income attributable to noncontrolling interest | 1 | 9 | 25 | 27 | |||||||||||
Comprehensive income attributable to Viacom | $ | 303 | $ | 747 | $ | 1,175 | $ | 1,195 | |||||||
(in millions, except par value) | June 30, 2018 | September 30, 2017 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 929 | $ | 1,389 | |||
Receivables, net | 3,149 | 2,970 | |||||
Inventory, net | 916 | 919 | |||||
Prepaid and other assets | 579 | 523 | |||||
Total current assets | 5,573 | 5,801 | |||||
Property and equipment, net | 875 | 978 | |||||
Inventory, net | 3,851 | 3,982 | |||||
Goodwill | 11,610 | 11,665 | |||||
Intangibles, net | 311 | 313 | |||||
Other assets | 941 | 959 | |||||
Total assets | $ | 23,161 | $ | 23,698 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 305 | $ | 431 | |||
Accrued expenses | 764 | 869 | |||||
Participants’ share and residuals | 774 | 825 | |||||
Program obligations | 654 | 712 | |||||
Deferred revenue | 317 | 463 | |||||
Current portion of debt | 23 | 19 | |||||
Other liabilities | 460 | 434 | |||||
Total current liabilities | 3,297 | 3,753 | |||||
Noncurrent portion of debt | 10,065 | 11,100 | |||||
Participants’ share and residuals | 414 | 384 | |||||
Program obligations | 465 | 477 | |||||
Deferred tax liabilities, net | 350 | 294 | |||||
Other liabilities | 1,254 | 1,323 | |||||
Redeemable noncontrolling interest | 245 | 248 | |||||
Commitments and contingencies (Note 6) | |||||||
Viacom stockholders’ equity: | |||||||
Class A common stock, par value $0.001, 375.0 authorized; 49.4 and 49.4 outstanding, respectively | — | — | |||||
Class B common stock, par value $0.001, 5,000.0 authorized; 353.7 and 353.0 outstanding, respectively | — | — | |||||
Additional paid-in capital | 10,132 | 10,119 | |||||
Treasury stock, 393.1 and 393.8 common shares held in treasury, respectively | (20,562 | ) | (20,590 | ) | |||
Retained earnings | 18,247 | 17,124 | |||||
Accumulated other comprehensive loss | (811 | ) | (618 | ) | |||
Total Viacom stockholders’ equity | 7,006 | 6,035 | |||||
Noncontrolling interests | 65 | 84 | |||||
Total equity | 7,071 | 6,119 | |||||
Total liabilities and equity | $ | 23,161 | $ | 23,698 | |||
Nine Months Ended June 30, | |||||||
(in millions) | 2018 | 2017 | |||||
OPERATING ACTIVITIES | |||||||
Net earnings (Viacom and noncontrolling interests) | $ | 1,352 | $ | 1,227 | |||
Discontinued operations, net of tax | (23 | ) | (3 | ) | |||
Net earnings from continuing operations | 1,329 | 1,224 | |||||
Reconciling items: | |||||||
Depreciation and amortization | 159 | 167 | |||||
Feature film and program amortization | 3,402 | 3,475 | |||||
Equity-based compensation | 45 | 52 | |||||
Equity in net earnings and distributions from investee companies | 2 | (11 | ) | ||||
Gain on sale of EPIX | — | (285 | ) | ||||
Deferred income taxes | 27 | (118 | ) | ||||
Operating assets and liabilities, net of acquisitions: | |||||||
Receivables | (211 | ) | (504 | ) | |||
Production and programming | (3,373 | ) | (3,252 | ) | |||
Accounts payable and other current liabilities | (384 | ) | (139 | ) | |||
Other, net | 1 | 45 | |||||
Net cash provided by operating activities | 997 | 654 | |||||
INVESTING ACTIVITIES | |||||||
Acquisitions and investments, net | (90 | ) | (358 | ) | |||
Capital expenditures | (102 | ) | (139 | ) | |||
Proceeds from asset sales | 57 | 108 | |||||
Proceeds from sale of EPIX | — | 593 | |||||
Proceeds from grantor trusts | 7 | 52 | |||||
Net cash provided by/(used in) investing activities | (128 | ) | 256 | ||||
FINANCING ACTIVITIES | |||||||
Borrowings | — | 2,569 | |||||
Debt repayments | (1,000 | ) | (3,300 | ) | |||
Dividends paid | (241 | ) | (239 | ) | |||
Exercise of stock options | 2 | 172 | |||||
Other, net | (70 | ) | (64 | ) | |||
Net cash used in financing activities | (1,309 | ) | (862 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (20 | ) | (2 | ) | |||
Net change in cash and cash equivalents | (460 | ) | 46 | ||||
Cash and cash equivalents at beginning of period | 1,389 | 379 | |||||
Cash and cash equivalents at end of period | $ | 929 | $ | 425 | |||
• | ASU 2016-13 introduces a new impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a forward-looking “expected loss” model that will replace the current “incurred loss” model and generally will result in earlier recognition of allowances for losses. The guidance will be effective for the first interim period of our 2021 fiscal year, with early adoption in fiscal year 2020 permitted. We are currently evaluating the impact of the new standard. |
• | ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of certain financial instruments. Among other provisions, the new guidance requires the fair value measurement of equity investments. For equity investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. All changes in measurement of equity investments will be recognized in net income. The guidance will be effective for the first interim period of our 2019 fiscal year. Early adoption is not permitted, except for certain provisions relating to financial liabilities. We expect to adopt ASU 2016-01 using the modified retrospective method and record a transition adjustment to reclassify accumulated other comprehensive income related to our available-for-sale securities to retained earnings (as of June 30, 2018, the balance was $28 million, net of tax). We further expect to adopt prospectively the “measurement alternative” using subsequent available observable price changes for our investments without readily determinable fair values. Gains and losses resulting from the movements in fair value of equity investments will be recorded as a component of Other items, net on the Consolidated Statements of Earnings. |
Inventory (in millions) | June 30, 2018 | September 30, 2017 | |||||
Film inventory: | |||||||
Released, net of amortization | $ | 519 | $ | 534 | |||
Completed, not yet released | — | 85 | |||||
In process and other | 674 | 686 | |||||
1,193 | 1,305 | ||||||
Television productions: | |||||||
Released, net of amortization | 48 | 15 | |||||
In process and other | 197 | 237 | |||||
245 | 252 | ||||||
Original programming: | |||||||
Released, net of amortization | 1,205 | 1,146 | |||||
In process and other | 587 | 673 | |||||
1,792 | 1,819 | ||||||
Acquired program rights, net of amortization | 1,460 | 1,435 | |||||
Home entertainment inventory | 77 | 90 | |||||
Total inventory, net | 4,767 | 4,901 | |||||
Less current portion | 916 | 919 | |||||
Noncurrent portion | $ | 3,851 | $ | 3,982 | |||
Debt (in millions) | June 30, 2018 | September 30, 2017 | |||||
Senior Notes and Debentures: | |||||||
Senior notes due September 2019, 5.625% | $ | 550 | $ | 550 | |||
Senior notes due December 2019, 2.750% | 252 | 252 | |||||
Senior notes due March 2021, 4.500% | 497 | 496 | |||||
Senior notes due December 2021, 3.875% | 596 | 595 | |||||
Senior notes due February 2022, 2.250% | 102 | 188 | |||||
Senior notes due June 2022, 3.125% | 194 | 297 | |||||
Senior notes due March 2023, 3.250% | 180 | 298 | |||||
Senior notes due September 2023, 4.250% | 1,239 | 1,237 | |||||
Senior notes due April 2024, 3.875% | 488 | 545 | |||||
Senior notes due October 2026, 3.450% | 474 | 587 | |||||
Senior debentures due December 2034, 4.850% | 281 | 585 | |||||
Senior debentures due April 2036, 6.875% | 1,068 | 1,067 | |||||
Senior debentures due October 2037, 6.750% | 75 | 75 | |||||
Senior debentures due February 2042, 4.500% | 61 | 102 | |||||
Senior debentures due March 2043, 4.375% | 1,100 | 1,096 | |||||
Senior debentures due June 2043, 4.875% | 32 | 37 | |||||
Senior debentures due September 2043, 5.850% | 1,230 | 1,229 | |||||
Senior debentures due April 2044, 5.250% | 345 | 545 | |||||
Junior Debentures: | |||||||
Junior subordinated debentures due February 2057, 5.875% | 642 | 642 | |||||
Junior subordinated debentures due February 2057, 6.250% | 642 | 642 | |||||
Capital lease and other obligations | 40 | 54 | |||||
Total debt | 10,088 | 11,119 | |||||
Less current portion | 23 | 19 | |||||
Noncurrent portion | $ | 10,065 | $ | 11,100 | |||
Net Periodic Benefit Cost (in millions) | Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest cost | $ | 9 | $ | 8 | $ | 26 | $ | 24 | |||||||
Expected return on plan assets | (10 | ) | (10 | ) | (30 | ) | (28 | ) | |||||||
Recognized actuarial loss | 1 | 2 | 5 | 6 | |||||||||||
Net periodic benefit cost | $ | — | $ | — | $ | 1 | $ | 2 | |||||||
Redeemable Noncontrolling Interest (in millions) | Nine Months Ended June 30, | ||||||
2018 | 2017 | ||||||
Beginning balance | $ | 248 | $ | 211 | |||
Net earnings | 13 | 13 | |||||
Distributions | (14 | ) | (13 | ) | |||
Translation adjustment | (4 | ) | (1 | ) | |||
Redemption value adjustment | 2 | (1 | ) | ||||
Ending Balance | $ | 245 | $ | 209 | |||
Nine Months Ended June 30, 2018 | Nine Months Ended June 30, 2017 | ||||||||||||||||||||||
Stockholders’ Equity (in millions) | Total Viacom Stockholders’ Equity | Noncontrolling Interests | Total Equity | Total Viacom Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||
Beginning Balance | $ | 6,035 | $ | 84 | $ | 6,119 | $ | 4,277 | $ | 53 | $ | 4,330 | |||||||||||
Net earnings | 1,325 | 27 | 1,352 | 1,200 | 27 | 1,227 | |||||||||||||||||
Other comprehensive loss (1) | (150 | ) | (2 | ) | (152 | ) | (5 | ) | — | (5 | ) | ||||||||||||
Noncontrolling interests | (2 | ) | (44 | ) | (46 | ) | 1 | (27 | ) | (26 | ) | ||||||||||||
Dividends declared | (243 | ) | — | (243 | ) | (240 | ) | — | (240 | ) | |||||||||||||
Equity-based compensation and other | 41 | — | 41 | 176 | — | 176 | |||||||||||||||||
Ending Balance | $ | 7,006 | $ | 65 | $ | 7,071 | $ | 5,409 | $ | 53 | $ | 5,462 | |||||||||||
Restructuring and Related Costs (in millions) | Nine Months Ended June 30, 2018 | ||||||||||||||
Media Networks | Filmed Entertainment | Corporate | Total | ||||||||||||
Severance (1) | $ | 123 | $ | — | $ | — | $ | 123 | |||||||
Exit costs | 40 | — | — | 40 | |||||||||||
Other related costs | — | — | 37 | 37 | |||||||||||
Total | $ | 163 | $ | — | $ | 37 | $ | 200 | |||||||
Restructuring Liability (in millions) | Media Networks | Filmed Entertainment | Corporate | Total | |||||||||||
September 30, 2017 | $ | 119 | $ | 45 | $ | 44 | $ | 208 | |||||||
Accruals | 157 | — | — | 157 | |||||||||||
Severance payments | (74 | ) | (21 | ) | (19 | ) | (114 | ) | |||||||
Lease payments | (10 | ) | — | — | (10 | ) | |||||||||
June 30, 2018 | $ | 192 | $ | 24 | $ | 25 | $ | 241 | |||||||
Weighted Average Number of Common Shares Outstanding and Anti-dilutive Common Shares (in millions) | Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Weighted average number of common shares outstanding, basic | 402.8 | 402.0 | 402.6 | 399.1 | |||||||
Dilutive effect of equity awards | 0.5 | 0.6 | 0.3 | 0.9 | |||||||
Weighted average number of common shares outstanding, diluted | 403.3 | 402.6 | 402.9 | 400.0 | |||||||
Anti-dilutive common shares | 18.9 | 16.8 | 19.2 | 14.7 | |||||||
Supplemental Cash Flow Information (in millions) | Nine Months Ended June 30, | ||||||
2018 | 2017 | ||||||
Cash paid for interest | $ | 403 | $ | 455 | |||
Cash paid for income taxes | $ | 95 | $ | 480 |
Revenues by Segment (in millions) | Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Media Networks | $ | 2,502 | $ | 2,560 | $ | 7,491 | $ | 7,543 | |||||||
Filmed Entertainment | 772 | 847 | 2,057 | 2,500 | |||||||||||
Eliminations | (37 | ) | (43 | ) | (90 | ) | (99 | ) | |||||||
Total revenues | $ | 3,237 | $ | 3,364 | $ | 9,458 | $ | 9,944 | |||||||
Adjusted Operating Income/(Loss) (in millions) | Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Media Networks | $ | 799 | $ | 870 | $ | 2,418 | $ | 2,604 | |||||||
Filmed Entertainment | 44 | 9 | (77 | ) | (237 | ) | |||||||||
Corporate expenses | (60 | ) | (58 | ) | (175 | ) | (163 | ) | |||||||
Eliminations | (6 | ) | (8 | ) | (2 | ) | (1 | ) | |||||||
Equity-based compensation | (10 | ) | (8 | ) | (39 | ) | (38 | ) | |||||||
Programming charges (1) | — | (38 | ) | — | (144 | ) | |||||||||
Restructuring and related costs (2) | (15 | ) | (21 | ) | (200 | ) | (237 | ) | |||||||
Operating income | 752 | 746 | 1,925 | 1,784 | |||||||||||
Interest expense, net | (138 | ) | (155 | ) | (428 | ) | (469 | ) | |||||||
Equity in net earnings of investee companies | 2 | 47 | 5 | 78 | |||||||||||
Gain on sale of EPIX | — | 285 | — | 285 | |||||||||||
Other items, net | (9 | ) | (2 | ) | (15 | ) | (37 | ) | |||||||
Earnings from continuing operations before provision for income taxes | $ | 607 | $ | 921 | $ | 1,487 | $ | 1,641 | |||||||
Total Assets (in millions) | June 30, 2018 | September 30, 2017 | |||||
Media Networks | $ | 17,456 | $ | 17,984 | |||
Filmed Entertainment | 5,396 | 6,188 | |||||
Corporate/Eliminations | 309 | (474 | ) | ||||
Total assets | $ | 23,161 | $ | 23,698 | |||
Revenues by Component (in millions) | Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Advertising | $ | 1,191 | $ | 1,235 | $ | 3,604 | $ | 3,638 | |||||||
Affiliate | 1,153 | 1,190 | 3,403 | 3,490 | |||||||||||
Feature film | 731 | 781 | 1,917 | 2,244 | |||||||||||
Ancillary | 199 | 201 | 624 | 671 | |||||||||||
Eliminations | (37 | ) | (43 | ) | (90 | ) | (99 | ) | |||||||
Total revenues | $ | 3,237 | $ | 3,364 | $ | 9,458 | $ | 9,944 | |||||||
CBS Related Party Transactions (in millions) | Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Consolidated Statements of Earnings | |||||||||||||||
Revenues | $ | 21 | $ | 25 | $ | 90 | $ | 99 | |||||||
Operating expenses | $ | 25 | $ | 39 | $ | 110 | $ | 129 | |||||||
June 30, 2018 | September 30, 2017 | ||||||||||||||
Consolidated Balance Sheets | |||||||||||||||
Accounts receivable | $ | 7 | $ | 5 | |||||||||||
Participants’ share and residuals, current | $ | 69 | $ | 69 | |||||||||||
Program obligations, current | 37 | 54 | |||||||||||||
Program obligations, noncurrent | 38 | 49 | |||||||||||||
Other liabilities | 1 | 1 | |||||||||||||
Total due to CBS | $ | 145 | $ | 173 | |||||||||||
Other Related Party Transactions (in millions) | Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Consolidated Statements of Earnings | |||||||||||||||
Revenues | $ | 7 | $ | 15 | $ | 38 | $ | 110 | |||||||
Operating expenses | $ | 3 | $ | 2 | $ | 8 | $ | 59 | |||||||
Selling, general and administrative | $ | — | $ | (1 | ) | $ | — | $ | (7 | ) | |||||
June 30, 2018 | September 30, 2017 | ||||||||||||||
Consolidated Balance Sheets | |||||||||||||||
Accounts receivable | $ | 41 | $ | 49 | |||||||||||
Other assets | 3 | 5 | |||||||||||||
Total due from other related parties | $ | 44 | $ | 54 | |||||||||||
Accounts payable | $ | 6 | $ | 8 | |||||||||||
Other liabilities | 5 | — | |||||||||||||
Total due to other related parties | $ | 11 | $ | 8 | |||||||||||
Quarter Ended June 30, | Better/(Worse) | Nine Months Ended June 30, | Better/(Worse) | ||||||||||||||||||||||||||
(in millions, except per share amounts) | 2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||
GAAP | |||||||||||||||||||||||||||||
Revenues | $ | 3,237 | $ | 3,364 | $ | (127 | ) | (4 | )% | $ | 9,458 | $ | 9,944 | $ | (486 | ) | (5 | )% | |||||||||||
Operating income | 752 | 746 | 6 | 1 | 1,925 | 1,784 | 141 | 8 | |||||||||||||||||||||
Net earnings from continuing operations attributable to Viacom | 511 | 680 | (169 | ) | (25 | ) | 1,302 | 1,197 | 105 | 9 | |||||||||||||||||||
Diluted earnings per share from continuing operations | 1.27 | 1.69 | (0.42 | ) | (25 | ) | 3.23 | 2.99 | 0.24 | 8 | |||||||||||||||||||
Non-GAAP* | |||||||||||||||||||||||||||||
Adjusted operating income | $ | 767 | $ | 805 | $ | (38 | ) | (5 | )% | $ | 2,125 | $ | 2,165 | $ | (40 | ) | (2 | )% | |||||||||||
Adjusted net earnings from continuing operations attributable to Viacom | 475 | 471 | 4 | 1 | 1,259 | 1,201 | 58 | 5 | |||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations | 1.18 | 1.17 | 0.01 | 1 | 3.12 | 3.00 | 0.12 | 4 | |||||||||||||||||||||
* See “Factors Affecting Comparability” section below for a reconciliation of our reported results to our adjusted results, which are calculated on a non-GAAP basis. |
(in millions, except per share amounts) | |||||||||||||||||||
Quarter Ended June 30, 2018 | |||||||||||||||||||
Operating Income | Earnings from Continuing Operations Before Provision for Income Taxes | Provision for Income Taxes | Net Earnings from Continuing Operations Attributable to Viacom | Diluted EPS from Continuing Operations | |||||||||||||||
Reported results (GAAP) | $ | 752 | $ | 607 | $ | 93 | $ | 511 | $ | 1.27 | |||||||||
Factors Affecting Comparability: | |||||||||||||||||||
Restructuring and related costs | 15 | 15 | 4 | 11 | 0.03 | ||||||||||||||
Discrete tax benefit | — | — | 47 | (47 | ) | (0.12 | ) | ||||||||||||
Adjusted results (Non-GAAP) | $ | 767 | $ | 622 | $ | 144 | $ | 475 | $ | 1.18 | |||||||||
(in millions, except per share amounts) | |||||||||||||||||||
Nine Months Ended June 30, 2018 | |||||||||||||||||||
Operating Income | Earnings from Continuing Operations Before Provision for Income Taxes | Provision for Income Taxes | Net Earnings from Continuing Operations Attributable to Viacom | Diluted EPS from Continuing Operations | |||||||||||||||
Reported results (GAAP) | $ | 1,925 | $ | 1,487 | $ | 158 | $ | 1,302 | $ | 3.23 | |||||||||
Factors Affecting Comparability: | |||||||||||||||||||
Restructuring and related costs | 200 | 200 | 48 | 152 | 0.38 | ||||||||||||||
Gain on extinguishment of debt | — | (25 | ) | (6 | ) | (19 | ) | (0.05 | ) | ||||||||||
Gain on asset sale | — | (16 | ) | — | (16 | ) | (0.04 | ) | |||||||||||
Investment impairments | — | 46 | 10 | 36 | 0.09 | ||||||||||||||
Discrete tax benefit | — | — | 196 | (196 | ) | (0.49 | ) | ||||||||||||
Adjusted results (Non-GAAP) | $ | 2,125 | $ | 1,692 | $ | 406 | $ | 1,259 | $ | 3.12 | |||||||||
(in millions, except per share amounts) | |||||||||||||||||||
Quarter Ended June 30, 2017 | |||||||||||||||||||
Operating Income | Earnings from Continuing Operations Before Provision for Income Taxes | Provision for Income Taxes | Net Earnings from Continuing Operations Attributable to Viacom | Diluted EPS from Continuing Operations | |||||||||||||||
Reported results (GAAP) | $ | 746 | $ | 921 | $ | 233 | $ | 680 | $ | 1.69 | |||||||||
Factors Affecting Comparability: | |||||||||||||||||||
Restructuring and programming charges | 59 | 59 | 21 | 38 | 0.09 | ||||||||||||||
Gain on extinguishment of debt | — | (16 | ) | (5 | ) | (11 | ) | (0.03 | ) | ||||||||||
Gain on sale of EPIX | — | (285 | ) | (96 | ) | (189 | ) | (0.47 | ) | ||||||||||
Investment impairment | — | 10 | 4 | 6 | 0.01 | ||||||||||||||
Discrete tax benefit | — | — | 53 | (53 | ) | (0.12 | ) | ||||||||||||
Adjusted results (Non-GAAP) | $ | 805 | $ | 689 | $ | 210 | $ | 471 | $ | 1.17 | |||||||||
(in millions, except per share amounts) | |||||||||||||||||||
Nine Months Ended June 30, 2017 | |||||||||||||||||||
Operating Income | Earnings from Continuing Operations Before Provision for Income Taxes | Provision for Income Taxes | Net Earnings from Continuing Operations Attributable to Viacom | Diluted EPS from Continuing Operations | |||||||||||||||
Reported results (GAAP) | $ | 1,784 | $ | 1,641 | 417 | $ | 1,197 | $ | 2.99 | ||||||||||
Factors Affecting Comparability: | |||||||||||||||||||
Restructuring and programming charges | 381 | 381 | 135 | 246 | 0.62 | ||||||||||||||
Loss on extinguishment of debt | — | 20 | 7 | 13 | 0.03 | ||||||||||||||
Gain on sale of EPIX | — | (285 | ) | (96 | ) | (189 | ) | (0.47 | ) | ||||||||||
Investment impairment | — | 10 | 4 | 6 | 0.02 | ||||||||||||||
Discrete tax benefit | — | — | 72 | (72 | ) | (0.19 | ) | ||||||||||||
Adjusted results (Non-GAAP) | $ | 2,165 | $ | 1,767 | $ | 539 | $ | 1,201 | $ | 3.00 | |||||||||
Restructuring and Related Costs (in millions) | Nine Months Ended June 30, 2018 | ||||||||||||||
Media Networks | Filmed Entertainment | Corporate | Total | ||||||||||||
Severance | $ | 123 | $ | — | $ | — | $ | 123 | |||||||
Exit costs | 40 | — | — | 40 | |||||||||||
Other related costs | — | — | 37 | 37 | |||||||||||
Total | $ | 163 | $ | — | $ | 37 | $ | 200 | |||||||
Restructuring and Programming Charges (in millions) | Quarter Ended June 30, 2017 | Nine Months Ended June 30, 2017 | |||||||||||||||||||||||||||||
Media Networks | Filmed Entertainment | Corporate | Total | Media Networks | Filmed Entertainment | Corporate | Total | ||||||||||||||||||||||||
Severance | $ | 12 | $ | 2 | $ | — | $ | 14 | $ | 142 | $ | 50 | $ | 20 | $ | 212 | |||||||||||||||
Asset impairment | 4 | — | — | 4 | 22 | — | — | 22 | |||||||||||||||||||||||
Lease termination | — | 3 | — | 3 | — | 3 | — | 3 | |||||||||||||||||||||||
Restructuring | 16 | 5 | — | 21 | 164 | 53 | 20 | 237 | |||||||||||||||||||||||
Programming | 7 | 31 | — | 38 | 113 | 31 | — | 144 | |||||||||||||||||||||||
Total | $ | 23 | $ | 36 | $ | — | $ | 59 | $ | 277 | $ | 84 | $ | 20 | $ | 381 | |||||||||||||||
Quarter Ended June 30, | Better/(Worse) | Nine Months Ended June 30, | Better/(Worse) | ||||||||||||||||||||||||||
(in millions) | 2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||
Revenues by Component | |||||||||||||||||||||||||||||
Advertising | $ | 1,191 | $ | 1,235 | $ | (44 | ) | (4 | )% | $ | 3,604 | $ | 3,638 | $ | (34 | ) | (1 | )% | |||||||||||
Affiliate | 1,153 | 1,190 | (37 | ) | (3 | ) | 3,403 | 3,490 | (87 | ) | (2 | ) | |||||||||||||||||
Ancillary | 158 | 135 | 23 | 17 | 484 | 415 | 69 | 17 | |||||||||||||||||||||
Total revenues by component | $ | 2,502 | $ | 2,560 | $ | (58 | ) | (2 | )% | $ | 7,491 | $ | 7,543 | $ | (52 | ) | (1 | )% | |||||||||||
Expenses | |||||||||||||||||||||||||||||
Operating | $ | 1,072 | $ | 1,044 | $ | (28 | ) | (3 | )% | $ | 3,165 | $ | 3,050 | $ | (115 | ) | (4 | )% | |||||||||||
Selling, general and administrative | 589 | 604 | 15 | 2 | 1,781 | 1,758 | (23 | ) | (1 | ) | |||||||||||||||||||
Depreciation and amortization | 42 | 42 | — | — | 127 | 131 | 4 | 3 | |||||||||||||||||||||
Total expenses | $ | 1,703 | $ | 1,690 | $ | (13 | ) | (1 | )% | $ | 5,073 | $ | 4,939 | $ | (134 | ) | (3 | )% | |||||||||||
Adjusted Operating Income | $ | 799 | $ | 870 | $ | (71 | ) | (8 | )% | $ | 2,418 | $ | 2,604 | $ | (186 | ) | (7 | )% | |||||||||||
Quarter Ended June 30, | Better/(Worse) | Nine Months Ended June 30, | Better/(Worse) | ||||||||||||||||||||||||||
(in millions) | 2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||
Revenues by Component | |||||||||||||||||||||||||||||
Theatrical | $ | 208 | $ | 263 | $ | (55 | ) | (21 | )% | $ | 358 | $ | 693 | $ | (335 | ) | (48 | )% | |||||||||||
Home entertainment | 119 | 218 | (99 | ) | (45 | ) | 465 | 659 | (194 | ) | (29 | ) | |||||||||||||||||
Licensing | 404 | 300 | 104 | 35 | 1,094 | 892 | 202 | 23 | |||||||||||||||||||||
Ancillary | 41 | 66 | (25 | ) | (38 | ) | 140 | 256 | (116 | ) | (45 | ) | |||||||||||||||||
Total revenues by component | $ | 772 | $ | 847 | $ | (75 | ) | (9 | )% | $ | 2,057 | $ | 2,500 | $ | (443 | ) | (18 | )% | |||||||||||
Expenses | |||||||||||||||||||||||||||||
Operating | $ | 641 | $ | 741 | $ | 100 | 13 | % | $ | 1,849 | $ | 2,455 | $ | 606 | 25 | % | |||||||||||||
Selling, general and administrative | 79 | 87 | 8 | 9 | 257 | 249 | (8 | ) | (3 | ) | |||||||||||||||||||
Depreciation and amortization | 8 | 10 | 2 | 20 | 28 | 33 | 5 | 15 | |||||||||||||||||||||
Total expenses | $ | 728 | $ | 838 | $ | 110 | 13 | % | $ | 2,134 | $ | 2,737 | $ | 603 | 22 | % | |||||||||||||
Adjusted Operating Income/(Loss) | $ | 44 | $ | 9 | $ | 35 | 389 | % | $ | (77 | ) | $ | (237 | ) | $ | 160 | 68 | % | |||||||||||
Change in cash and cash equivalents (in millions) | Nine Months Ended June 30, | Better/(Worse) | |||||||||
2018 | 2017 | $ | |||||||||
Net cash provided by operating activities | $ | 997 | $ | 654 | $ | 343 | |||||
Net cash provided by/(used in) investing activities | (128 | ) | 256 | (384 | ) | ||||||
Net cash used in financing activities | (1,309 | ) | (862 | ) | (447 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (20 | ) | (2 | ) | (18 | ) | |||||
Increase/(decrease) in cash and cash equivalents | $ | (460 | ) | $ | 46 | $ | (506 | ) | |||
Reconciliation of net cash provided by operating activities to free cash flow and operating free cash flow | |||||||||||
Net cash provided by operating activities (GAAP) | $ | 997 | $ | 654 | $ | 343 | |||||
Capital expenditures | (102 | ) | (139 | ) | 37 | ||||||
Free cash flow (Non-GAAP) | 895 | 515 | 380 | ||||||||
Debt retirement premium | — | 33 | (33 | ) | |||||||
Operating free cash flow (Non-GAAP) | $ | 895 | $ | 548 | $ | 347 | |||||
Exhibit No. | Description of Exhibit | |
31.1* | ||
31.2* | ||
32.1* | ||
32.2* | ||
101.INS* | XBRL Instance Document. | |
101.SCH* | XBRL Taxonomy Extension Schema Document. | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |
* | Filed herewith |
VIACOM INC. | |||
Date: August 9, 2018 | By: | /s/ WADE DAVIS | |
Wade Davis | |||
Executive Vice President, Chief Financial Officer | |||
Date: August 9, 2018 | By: | /s/ KATHERINE GILL-CHAREST | |
Katherine Gill-Charest | |||
Senior Vice President, Controller (Chief Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Viacom Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ ROBERT M. BAKISH | |
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Viacom Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ WADE DAVIS | |
Executive Vice President, Chief Financial Officer |
1. | the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ ROBERT M. BAKISH | |
Robert M. Bakish | |
August 9, 2018 |
1. | the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ WADE DAVIS | |
Wade Davis | |
August 9, 2018 |
Document entity information - shares |
9 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 31, 2018 |
|
Entity Information [Abstract] | ||
Entity Registrant Name | Viacom Inc. | |
Entity Central Index Key | 0001339947 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Common Class A | ||
Entity Common Stock, Shares Outstanding | 49,430,905 | |
Common Class B | ||
Entity Common Stock, Shares Outstanding | 353,433,073 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||
Statement of Comprehensive Income [Abstract] | ||||||||
Net earnings (Viacom and noncontrolling interests) | $ 525 | $ 691 | $ 1,352 | $ 1,227 | ||||
Other comprehensive income/(loss), net of tax: | ||||||||
Foreign currency translation adjustments | (228) | 59 | (175) | (16) | ||||
Defined benefit pension plans | 1 | 1 | 4 | 4 | ||||
Cash flow hedges | (3) | 5 | (3) | 7 | ||||
Available-for-sale securities | 9 | 0 | 22 | 0 | ||||
Other comprehensive income/(loss) (Viacom and noncontrolling interests) | (221) | 65 | (152) | [1] | (5) | [1] | ||
Comprehensive income | 304 | 756 | 1,200 | 1,222 | ||||
Less: Comprehensive income attributable to noncontrolling interest | 1 | 9 | 25 | 27 | ||||
Comprehensive income attributable to Viacom | $ 303 | $ 747 | $ 1,175 | $ 1,195 | ||||
|
CONSOLIDATED BALANCE SHEET (Parenthetical) (unaudited) - $ / shares shares in Millions |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Treasury Stock (shares) | 393.1 | 393.8 |
Common Class A | ||
Common Stock, Par or Stated Value Per Share (in usd per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 375.0 | 375.0 |
Common Stock, Shares, Outstanding | 49.4 | 49.4 |
Common Class B | ||
Common Stock, Par or Stated Value Per Share (in usd per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 5,000.0 | 5,000.0 |
Common Stock, Shares, Outstanding | 353.7 | 353.0 |
Basis of Presentation |
9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Basis of Presentation | BASIS OF PRESENTATION Description of Business Viacom is home to premier global media brands that create compelling entertainment content - including television programs, motion pictures, short-form content, games, consumer products, podcasts, live events and social media experiences - for audiences in 183 countries on various platforms and devices. Viacom operates through two reportable segments: Media Networks and Filmed Entertainment. The Media Networks segment provides entertainment content, services and related branded products for consumers in targeted demographics attractive to advertisers, content distributors and retailers through three brand groups: the Global Entertainment Group, the Nickelodeon Group and BET Networks. The Filmed Entertainment segment develops, produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Players, Paramount Animation and Paramount Television divisions, in various markets and media worldwide, for itself and for third parties. It partners on various projects with key Viacom franchises, including Nickelodeon Movies and MTV Films. References in this document to “Viacom,” “Company,” “we,” “us” and “our” mean Viacom Inc. and our consolidated subsidiaries, unless the context requires otherwise. Unaudited Interim Financial Statements The accompanying unaudited consolidated quarterly financial statements have been prepared on a basis consistent with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited financial statements reflect all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of our results of operations, financial position and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results expected for the fiscal year ending September 30, 2018 (“fiscal 2018”) or any future period. These financial statements should be read in conjunction with our Form 10-K for the year ended September 30, 2017, as filed with the SEC on November 16, 2017 (the “2017 Form 10-K”). Use of Estimates Preparing financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates presented and the reported amounts of revenues and expenses during the periods presented. Significant estimates inherent in the preparation of the accompanying Consolidated Financial Statements include estimates of film ultimate revenues, product returns, potential outcome of uncertain tax positions, fair value of acquired assets and liabilities, fair value of equity-based compensation and pension benefit assumptions. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. Recent Accounting Pronouncements Equity-Based Compensation On October 1, 2017, we adopted Accounting Standards Update (“ASU”) 2016-09 - Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for and presentation of share-based payments in the financial statements. The new guidance requires all excess tax benefits and tax deficiencies arising from share-based payment activity to be (i) recognized within Provision for income taxes in the Consolidated Statements of Earnings in the period in which the awards vest or are exercised or canceled, and (ii) reported as operating activities in the Consolidated Statements of Cash Flows. We retrospectively reclassified $1 million of excess tax benefits in the nine months ended June 30, 2017 from financing activities to operating activities in the Consolidated Statements of Cash Flows. Derivatives and Hedging In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12 - Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. Among other provisions, ASU 2017-12 expands the eligibility of hedging strategies that qualify for hedge accounting, changes the assessment of hedge effectiveness and modifies the presentation and disclosure of hedging activities. The guidance will be effective for the first interim period of our 2020 fiscal year, with early adoption permitted. We are currently evaluating the impact of the new standard on our consolidated financial statements. Income Taxes In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”). ASU 2018-02 allows for reclassification of stranded tax effects on items resulting from the Tax Cuts and Jobs Act from AOCI to retained earnings. Certain tax effects become stranded in AOCI when deferred tax balances originally recorded at the historical income tax rate are adjusted in income from continuing operations based on the lower newly enacted income tax rate. We early adopted this guidance in the current quarter and reclassified the stranded income tax effects resulting from the Tax Cuts and Jobs Act, increasing the accumulated other comprehensive loss by $43 million with a corresponding increase to retained earnings. The reclassification was primarily comprised of amounts relating to pension benefit plan obligations and available-for-sale securities. In October 2016, the FASB issued ASU 2016-16 - Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 will require the tax effects of intercompany transactions, other than sales of inventory, to be recognized currently, eliminating an exception under current GAAP in which the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The guidance will be effective for the first interim period of our 2019 fiscal year, with early adoption permitted. As of June 30, 2018, the Company had approximately $165 million of unrecorded net deferred tax assets, primarily related to an intra-entity transfer of assets. Once recorded, the deferred tax assets will be amortized over the next 12 years. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15 - Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance will be effective for the first interim period of our 2019 fiscal year, with early adoption permitted. The new standard will impact our Consolidated Statements of Cash Flows by increasing cash flow from operating activities and decreasing cash flow from financing activities in periods when debt prepayment or debt extinguishment costs are paid. The amount that will be reclassified for the nine months ended June 30, 2017 is $33 million. Financial Instruments In connection with its financial instruments project, the FASB issued ASU 2016-13 - Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments in June 2016 and ASU 2016-01 - Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities in January 2016.
Leases In February 2016, the FASB issued ASU 2016-02 - Leases. Subsequent ASUs have also been issued that amend and/or clarify the application of ASU 2016-02. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for most leases. For income statement purposes, leases will be classified as either operating or finance, generally resulting in straight-line expense recognition for operating leases (similar to current operating leases) and accelerated expense recognition for financing leases (similar to current capital leases). The guidance will be effective for the first interim period of our 2020 fiscal year, with early adoption permitted. The guidance provides an option to either (1) adopt retrospectively and recognize a cumulative-effect adjustment at the beginning of the earliest period presented in the financial statements or (2) recognize a cumulative-effect adjustment at the beginning of the period of adoption. We are evaluating the adoption methodology and the impact of the new guidance on our consolidated financial statements. Revenue Recognition In May 2014, the FASB issued ASU 2014-09 - Revenue from Contracts with Customers, a comprehensive revenue recognition model that supersedes the current revenue recognition requirements and most industry-specific guidance. Subsequent ASUs have also been issued that amend and/or clarify the application of ASU 2014-09. The guidance provides a five-step framework to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The guidance will be effective for the first interim period of our 2019 fiscal year, and allows adoption either under a full retrospective or a modified retrospective approach. We continue to assess the potential impact of adopting this guidance and are finalizing our implementation. We began designing appropriate changes to our processes, systems and controls to support the recognition and disclosure requirements under the new guidance. We expect that the new standard will impact the timing of revenue recognition for renewals or extensions of existing licensing agreements for intellectual property, which upon adoption will be recognized as revenue when the renewal term begins rather than when the agreement is extended or renewed under guidance currently in effect. We have not identified any other significant impacts to our consolidated financial statements based on our assessment to date. Our continued evaluation of the expected impact of the new guidance or the issuance of additional interpretations, if any, could result in an impact that is different from our preliminary conclusions. We expect to apply the modified retrospective method of adoption, which will result in a cumulative effect adjustment to the opening retained earnings balance of our 2019 fiscal year. |
Inventory |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory | INVENTORY Our total inventory consists of the following:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT Our total debt consists of the following:
In the nine months ended June 30, 2018, we redeemed $1.039 billion of senior notes and debentures for a redemption price of $1.000 billion. As a result, we recognized a net pre-tax extinguishment gain of $25 million, net of $14 million of unamortized debt costs and transaction fees included in Other items, net in the Consolidated Statements of Earnings. Our 5.875% junior subordinated debentures accrue interest at a fixed rate of 5.875% until February 28, 2022, on which date the rate will switch to a floating rate based on three-month LIBOR plus 3.895%, reset quarterly. Our 6.250% junior subordinated debentures accrue interest at a fixed rate of 6.250% until February 28, 2027, on which date the rate will switch to a floating rate based on three-month LIBOR plus 3.899%, reset quarterly. The junior subordinated debentures can be called by us at any time after the expiration of the fixed-rate period. The total unamortized discount and issuance fees and expenses related to our notes and debentures outstanding was $435 million and $457 million as of June 30, 2018 and September 30, 2017, respectively. The fair value of our notes and debentures outstanding was approximately $10.2 billion as of June 30, 2018. The valuation of our publicly traded debt is based on quoted prices in active markets (Level 1 in the fair value hierarchy). Credit Facility As of June 30, 2018, there were no amounts outstanding under our $2.5 billion revolving credit facility due November 2019. The credit facility is used for general corporate purposes and to support commercial paper outstanding. The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met as of June 30, 2018. |
Pension Benefits |
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Pension Benefits | PENSION BENEFITS The components of net periodic benefit cost for our defined benefit pension plans, which are currently frozen to future benefit accruals, are set forth below.
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Redeemable Noncontrolling Interest |
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Noncontrolling Interest Disclosure | REDEEMABLE NONCONTROLLING INTEREST We are subject to a redeemable put option, payable in a foreign currency, with respect to an international subsidiary. The put option expires in December 2022 and is classified as Redeemable noncontrolling interest in the Consolidated Balance Sheets. The activity reflected within redeemable noncontrolling interest is as follows:
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Commitments and Contingencies |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments As more fully described in Note 11 of the 2017 Form 10-K, our commitments primarily consist of programming and talent commitments, operating and capital lease arrangements, and purchase obligations for goods and services. These arrangements result from our normal course of business and represent obligations that may be payable over several years. Contingencies We have certain indemnification obligations with respect to leases primarily associated with the previously discontinued operations of Famous Players Inc. (“Famous Players”). In addition, we have certain indemnities provided by the acquirer of Famous Players. These lease commitments amounted to approximately $151 million, and are recorded as a liability as of June 30, 2018. The amount of lease commitments varies over time depending on expiration or termination of individual underlying leases, or of the related indemnification obligation, and foreign exchange rates, among other things. We may also have exposure for certain other expenses related to the leases, such as property taxes and common area maintenance. We believe our accrual is sufficient to meet any future obligations based on our consideration of available financial information, the lessees’ historical performance in meeting their lease obligations and the underlying economic factors impacting the lessees’ business models. Legal Matters Litigation is inherently uncertain and always difficult to predict. However, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the legal matter described below and other litigation to which we are a party are not likely, in the aggregate, to have a material adverse effect on our results of operations, financial position or operating cash flows. Purported Derivative Action In July 2016, a purported derivative action was commenced in the Delaware Chancery Court by a purported Viacom stockholder against Viacom and its directors. The complaint alleged that Viacom’s directors breached their fiduciary duties to Viacom in connection with compensation paid to Mr. Redstone and that these breaches permitted a waste of corporate assets and the unjust enrichment of Mr. Redstone. In October 2017, the Court granted Viacom’s motion to dismiss the action. In May 2018, following an appeal by the plaintiff, the Delaware Supreme Court affirmed the dismissal. |
Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders Equity | STOCKHOLDERS’ EQUITY The components of stockholders’ equity are as follows:
(1) The components of other comprehensive loss are net of tax expense of $15 million and $7 million for the nine months ended June 30, 2018 and 2017, respectively. |
Restructuring |
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Restructuring | RESTRUCTURING AND RELATED COSTS In the second quarter of fiscal 2018, we launched a program of cost transformation initiatives to improve our margins, including an organizational realignment of support functions across Media Networks, new sourcing and procurement policies, real estate consolidation and technology enhancements. We recognized pre-tax restructuring-related costs of $15 million in the quarter, comprised of third-party professional services. In the nine months ended June 30, 2018, we recorded $200 million of restructuring and related costs. The charges, as detailed in the table below, included severance charges, exit costs principally resulting from vacating certain leased properties and related costs comprised of third-party professional services.
(1) Includes equity-based compensation expense of $6 million. Our restructuring liability by reportable segment is as follows:
As of June 30, 2018, of the remaining $241 million liability, $168 million is classified as a current liability in the Consolidated Balance Sheets, with the remaining $73 million classified as a noncurrent liability. We expect to complete our restructuring actions in fiscal 2019. Amounts classified as noncurrent are expected to be substantially paid through 2021, in accordance with applicable contractual terms. |
Earnings Per Share |
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Earnings Per Share | EARNINGS PER SHARE Basic earnings per common share is computed by dividing Net earnings attributable to Viacom by the weighted average number of common shares outstanding during the period. The determination of diluted earnings per common share includes the weighted average number of common shares plus the dilutive effect of equity awards based upon the application of the treasury stock method. Anti-dilutive common shares were excluded from the calculation of diluted earnings per common share. The following table sets forth the weighted average number of common shares outstanding used in determining basic and diluted earnings per common share and anti-dilutive common shares:
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Supplemental Cash Flow and Other Information |
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Supplemental Cash Flow and Other Information | SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION Our supplemental cash flow information is as follows:
Cash paid for income taxes in the nine months ended June 30, 2018 reflects the benefits from a lower corporate United States (“U.S.”) income tax rate as a result of the Tax Cuts and Jobs Act enacted on December 22, 2017 and the retroactive reenactment of legislation allowing for accelerated tax deductions on certain qualified film and television productions. Accounts Receivable We had $493 million and $486 million of noncurrent trade receivables as of June 30, 2018 and September 30, 2017, respectively. Accounts receivables are principally related to long-term television license arrangements at Filmed Entertainment and subscription video-on-demand and other over-the-top arrangements at Media Networks. These amounts are included within Other assets - noncurrent in our Consolidated Balance Sheets. Such amounts are due in accordance with the underlying terms of the respective agreements with companies that are investment grade or with which we have historically done business under similar terms. We have determined that credit loss allowances are generally not considered necessary for these amounts. Acquisitions During the nine months ended June 30, 2018, the Company acquired WhoSay, a leading influence marketing firm, and VidCon, a host of conferences dedicated to online video, for total consideration of $70 million, net of cash acquired. Investments During the nine months ended June 30, 2018, we recognized an impairment loss of $46 million to write off certain cost method investments. We also completed the sale of a 1% equity interest in Viacom18 to our joint venture partner for $20 million, resulting in a gain of $16 million. The impairment charge and gain on asset sale are included in Other items, net in the Consolidated Statements of Earnings. During the quarter ended June 30, 2017, we recognized an impairment loss of $10 million to write off a cost method investment. The impairment charge is included in Other items, net in the Consolidated Statements of Earnings. We also completed the sale of our 49.76% interest in EPIX, a premium entertainment network, to Metro-Goldwyn-Mayer. The sale resulted in proceeds of $593 million, net of transaction costs of $4 million, and a gain of $285 million. In addition, prior to the closing of the sale, EPIX paid a dividend, of which our pro rata share was $37 million. Variable Interest Entities In the normal course of business, we enter into joint ventures or make investments with business partners that support our underlying business strategy and provide us the ability to enter new markets to expand the reach of our brands, develop new programming and/or distribute our existing content. In certain instances, an entity in which we make an investment may qualify as a variable interest entity (“VIE”). In determining whether we are the primary beneficiary of a VIE, we assess whether we have the power to direct matters that most significantly impact the activities of the VIE and have the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Our Consolidated Balance Sheets include amounts related to consolidated VIEs totaling $154 million in assets and $6 million in liabilities as of June 30, 2018, and $159 million in assets and $8 million in liabilities as of September 30, 2017. The consolidated VIEs’ revenues, expenses and operating income were not significant for all periods presented. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The currently relevant provisions of the Act provide for a reduction of the federal corporate income tax rate from 35% to 21% and a “transition tax” to be levied on the deemed repatriation of indefinitely reinvested earnings of international subsidiaries. As a result of these factors, as well as our fiscal year-end, the federal statutory tax rate will decrease from 35% to a prorated rate of 24.5% for fiscal 2018. While the Act includes many provisions, those applicable to Viacom will be phased in and will not be fully effective until fiscal 2019. As a result of the Act, provisional amounts have been recorded in accordance with SEC guidance provided in Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, for the remeasurement of deferred tax assets and liabilities and the transition tax. For the nine months, we recognized a net discrete tax benefit of $223 million that reflects the impact of the Act on our deferred tax balances. In addition, a provisional expense of $4 million in the quarter and $69 million in the nine months has been recorded on a net basis for the one-time transition tax on the deemed repatriation of indefinitely reinvested earnings of our international subsidiaries. These amounts are provisional because certain aspects were based on estimates and assumptions where guidance has yet to be provided. As guidance is received from federal and state authorities, the outcome of these provisional amounts could further change. No additional income taxes have been provided for any remaining undistributed international cash not subject to the transition tax or any additional outside basis differences as these amounts continue to be indefinitely reinvested outside the U.S. These amounts could be subject to approximately $100 million to $150 million of U.S. tax to the extent they are repatriated in the future. Our effective income tax rate was 15.3% and 10.6% in the quarter and nine months ended June 30, 2018, respectively. A net discrete tax benefit of $47 million in the quarter and $196 million in the nine months, taken together with the discrete tax impact of the restructuring and related costs, investment impairments, and gain on debt extinguishment, reduced the effective income tax rate by 7.9 and 13.4 percentage points in the quarter and nine months, respectively. The net discrete tax benefit in the quarter was principally related to a tax accounting method change granted by the Internal Revenue Service and the release of tax reserves with respect to certain effectively settled tax positions. In addition to the items in the quarter, the net discrete tax benefit in the nine months was principally related to tax reform, as well as the measurement of the deferred tax balances from the retroactive reenactment of legislation allowing for accelerated tax deductions on certain qualified film and television productions. Our effective income tax rate was 25.3% and 25.4% in the quarter and nine months ended June 30, 2017, respectively. A net discrete tax benefit of $53 million in the quarter and $72 million in the nine months, taken together with the discrete tax impact of the gain on sale of our investment in EPIX, restructuring and programming charges, the gain or loss on debt extinguishment and an investment impairment, reduced the effective income tax rate by 5.2 and 5.1 percentage points, respectively. The net discrete tax benefit in the quarter was principally related to the reversal of a valuation allowance on capital loss carryforwards in connection with the sale of our investment in EPIX and the release of tax reserves with respect to certain effectively settled tax positions. In addition to the items in the quarter, the net discrete tax benefit in the nine months included the reversal of valuation allowances on net operating losses upon receipt of a favorable tax authority ruling. |
Fair Value Measurements |
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Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS During the first fiscal quarter of 2018, an investment previously accounted for using the cost method was listed on a public exchange. As a result, we reclassified our investment as available-for-sale. The fair value of our available-for-sale securities was $46 million as of June 30, 2018, which is included within Other assets, noncurrent in our Consolidated Balance Sheets, as determined utilizing a market approach based on quoted market prices in active markets at period end (Level 1 in the fair value hierarchy). The fair value of our foreign exchange contracts was a liability of $4 million as of June 30, 2018 and an asset of $7 million as of September 30, 2017, as determined utilizing a market-based approach (Level 2 in the fair value hierarchy). The notional value of all foreign exchange contracts was $665 million and $869 million as of June 30, 2018 and September 30, 2017, respectively. As of June 30, 2018, $275 million related to our foreign currency balances and $390 million related to future production costs. As of September 30, 2017, $287 million related to our foreign currency balances and $582 million related to future production costs. |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments | REPORTABLE SEGMENTS The following tables set forth our financial performance by reportable segment. Our reportable segments have been determined in accordance with our internal management structure. We manage our operations through two reportable segments: (i) Media Networks and (ii) Filmed Entertainment. Typical intersegment transactions include the purchase of advertising by the Filmed Entertainment segment on Media Networks’ properties and the licensing of Filmed Entertainment’s feature film and television content by Media Networks. The elimination of such intercompany transactions in the Consolidated Financial Statements is included within eliminations in the tables below. Our measure of segment performance is adjusted operating income. Adjusted operating income is defined as operating income, before equity-based compensation and certain other items identified as affecting comparability, when applicable.
(1) Included in Operating expenses in the Consolidated Statements of Earnings. (2) Includes equity-based compensation expense of $6 million in the nine months ended June 30, 2018. Includes expense reduction of $6 million in the quarter ended June 30, 2017 due to modification of an equity award and equity-based compensation expense of $14 million in the nine months ended June 30, 2017.
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | RELATED PARTY TRANSACTIONS National Amusements, Inc. (“National Amusements”), directly and indirectly, is the controlling stockholder of both Viacom and CBS Corporation (“CBS”). National Amusements owns shares in Viacom representing approximately 79.8% of the voting interest in Viacom and approximately 10% of Viacom’s combined common stock. National Amusements is controlled by Sumner M. Redstone, our Chairman Emeritus, who is the Chairman and Chief Executive Officer of National Amusements, through the Sumner M. Redstone National Amusements Trust (the “SMR Trust”), which owns shares in National Amusements representing 80% of the voting interest of National Amusements. The shares representing the other 20% of the voting interest of National Amusements are held through a trust controlled by Shari E. Redstone, who is Mr. Redstone’s daughter and the non-executive Vice Chair of Viacom’s Board of Directors and the President and a member of the Board of Directors of National Amusements. The shares of National Amusements held by the SMR Trust are voted solely by Mr. Redstone until such time as his incapacity or death. Upon Mr. Redstone’s incapacity or death, (1) Ms. Redstone will also become a trustee of the SMR Trust and (2) the shares of National Amusements held by the SMR Trust will be voted by the trustees of the SMR Trust. The current trustees include Mr. Redstone and David R. Andelman, a member of the boards of directors of National Amusements and CBS. The current Board of Directors of National Amusements includes Mr. Redstone, Ms. Redstone and Mr. Andelman. In addition, Mr. Redstone serves as Chairman Emeritus of CBS and Ms. Redstone serves as non-executive Vice Chair of CBS. Transactions between Viacom and related parties are overseen by our Governance and Nominating Committee. Viacom and National Amusements Related Party Transactions National Amusements licenses films in the ordinary course of business for its motion picture theaters from all major studios, including Paramount. During the nine months ended June 30, 2018 and 2017, Paramount earned revenues from National Amusements in connection with these licenses in the aggregate amount of approximately $5 million in both periods. Viacom and CBS Corporation Related Party Transactions In the ordinary course of business, we are involved in transactions with CBS and its various businesses that result in the recognition of revenues and expenses by us. Transactions with CBS are settled in cash. Our Filmed Entertainment segment earns revenues and recognizes expenses associated with its distribution of certain television products into the home entertainment market on behalf of CBS. Pursuant to its agreement with CBS, Paramount distributes CBS’s library of television and other content on DVD and Blu-ray disc on a worldwide basis. Under the terms of the agreement, Paramount is entitled to retain a fee based on a percentage of gross receipts and is generally responsible for all out-of-pocket costs, which are recoupable prior to any participation amounts paid. Paramount also earns revenues from CBS through leasing of studio space and licensing of certain film products. Our Media Networks segment recognizes advertising revenues and purchases television programming from CBS. The cost of the programming purchases is initially recorded as acquired program rights inventory and amortized over the estimated period that revenues will be generated. Both of our segments recognize advertising expenses related to the placement of advertisements with CBS. The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements:
Other Related Party Transactions In the ordinary course of business, we are involved in related party transactions with equity investees. These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content, distribution of films and provision of certain administrative support services, for which the impact on our Consolidated Financial Statements is as follows:
All other related party transactions are not material in the periods presented. |
Inventory (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Balances | Our total inventory consists of the following:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Our total debt consists of the following:
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Pension Benefits (Tables) |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost (Table) | The components of net periodic benefit cost for our defined benefit pension plans, which are currently frozen to future benefit accruals, are set forth below.
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Redeemable Noncontrolling Interest (Tables) |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | The activity reflected within redeemable noncontrolling interest is as follows:
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Stockholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder Equity Components | The components of stockholders’ equity are as follows:
(1) The components of other comprehensive loss are net of tax expense of $15 million and $7 million for the nine months ended June 30, 2018 and 2017, respectively. |
Restructuring Reserve by Type of Cost (Tables) |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Reserve by Type of Cost [Table Text Block] |
(1) Includes equity-based compensation expense of $6 million. |
Restructuring Rollforward (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | Our restructuring liability by reportable segment is as follows:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares Outstanding and Anti-dilutive Common Shares | The following table sets forth the weighted average number of common shares outstanding used in determining basic and diluted earnings per common share and anti-dilutive common shares:
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Supplemental Cash Flow and Other Information (Tables) |
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Our supplemental cash flow information is as follows:
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Reportable Segments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues by Segment |
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Adjusted Operating Income (Loss) |
(1) Included in Operating expenses in the Consolidated Statements of Earnings. (2) Includes equity-based compensation expense of $6 million in the nine months ended June 30, 2018. Includes expense reduction of $6 million in the quarter ended June 30, 2017 due to modification of an equity award and equity-based compensation expense of $14 million in the nine months ended June 30, 2017. |
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Total Assets |
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Revenues by Component |
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Related Party Transactions (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Persons Transactions (Tables) | The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements:
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Related Parties Transactions (Tables) | In the ordinary course of business, we are involved in related party transactions with equity investees. These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content, distribution of films and provision of certain administrative support services, for which the impact on our Consolidated Financial Statements is as follows:
|
Basis of Presentation (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
Segment
|
Jun. 30, 2017
USD ($)
|
|
Number of Countries in which Entity Operates | 183 | 183 | |
Number of Reportable Segments | Segment | 2 | ||
Number of Brand Groups | 3 | 3 | |
Accounting Standards Update 2016-09 [Member] | |||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 1 | ||
Accounting Standards Update 2018-02 [Member] | |||
Reclassification from AOCI, Current Period, Tax | $ 43 | ||
Accounting Standards Update 2016-16 [Member] | |||
Deferred Tax Asset, Intra-entity Transfer, Asset Other than Inventory | $ 165 | $ 165 | |
Amortization Period of Deferred Tax Assets | 12 years | ||
Accounting Standards Update 2016-15 [Member] | |||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 33 | ||
Accounting Standards Update 2016-01 [Member] | |||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | $ 28 | $ 28 |
Inventory (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Film inventory: | ||
Released, net of amortization | $ 519 | $ 534 |
Completed, not yet released | 0 | 85 |
In process and other | 674 | 686 |
Television productions: | ||
Released, net of amortization | 48 | 15 |
In process and other | 197 | 237 |
Original programming: | ||
Released, net of amortization | 1,205 | 1,146 |
In process and other | 587 | 673 |
Acquired program rights, net of amortization | 1,460 | 1,435 |
Home entertainment inventory | 77 | 90 |
Total inventory, net | 4,767 | 4,901 |
Less current portion | 916 | 919 |
Noncurrent portion | 3,851 | 3,982 |
Film Inventory | ||
Inventory Net [Line Items] | ||
Total Inventory Net Of Amortization | 1,193 | 1,305 |
Television Productions | ||
Inventory Net [Line Items] | ||
Total Inventory Net Of Amortization | 245 | 252 |
Original Programming | ||
Inventory Net [Line Items] | ||
Total Inventory Net Of Amortization | $ 1,792 | $ 1,819 |
Credit Facility Narrative (Details) - Revolving Credit Agreement |
9 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Debt Instrument [Line Items] | |
Long-term Line of Credit | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000,000 |
Line of Credit Facility, Covenant Terms | The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met as of June 30, 2018 |
Pension Benefits (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Net Periodic Benefit Cost Abstract | ||||
Interest cost | $ 9 | $ 8 | $ 26 | $ 24 |
Expected return on plan assets | (10) | (10) | (30) | (28) |
Recognized actuarial loss | 1 | 2 | 5 | 6 |
Net periodic benefit cost | $ 0 | $ 0 | $ 1 | $ 2 |
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Redeemable Noncontrolling Interest [Roll Forward] | ||
Beginning balance | $ 248 | $ 211 |
Net earnings | 13 | 13 |
Distributions | (14) | (13) |
Translation adjustment | (4) | (1) |
Redemption value adjustment | 2 | (1) |
Ending Balance | $ 245 | $ 209 |
Commitments and Contingencies (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Other Commitments [Line Items] | |
Recorded liability for lease indemnifications | $ 151 |
Restructuring Reserve by Type (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
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Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Costs | [1] | $ 15 | $ 21 | $ 200 | $ 237 | ||||
Severance | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | [2] | 123 | |||||||
Exit costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | 40 | ||||||||
Other related costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | 37 | ||||||||
Allocated Share-Based Compensation Expense [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | $ (6) | 6 | $ 14 | ||||||
Media Networks | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Costs | 163 | ||||||||
Media Networks | Severance | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | [2] | 123 | |||||||
Media Networks | Exit costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | 40 | ||||||||
Media Networks | Other related costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | 0 | ||||||||
Filmed Entertainment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Costs | 0 | ||||||||
Filmed Entertainment | Severance | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | 0 | ||||||||
Filmed Entertainment | Exit costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | 0 | ||||||||
Filmed Entertainment | Other related costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | 0 | ||||||||
Corporate | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Costs | 37 | ||||||||
Corporate | Severance | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | 0 | ||||||||
Corporate | Exit costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | 0 | ||||||||
Corporate | Other related costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring | $ 37 | ||||||||
|
Restructuring Reserve Rollforward (Details) $ in Millions |
9 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | $ 208 |
Accruals | 157 |
Severance payments | (114) |
Lease payments | (10) |
Restructuring reserve, ending balance | 241 |
Media Networks | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | 119 |
Accruals | 157 |
Severance payments | (74) |
Lease payments | (10) |
Restructuring reserve, ending balance | 192 |
Filmed Entertainment | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | 45 |
Accruals | 0 |
Severance payments | (21) |
Lease payments | 0 |
Restructuring reserve, ending balance | 24 |
Corporate | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | 44 |
Accruals | 0 |
Severance payments | (19) |
Lease payments | 0 |
Restructuring reserve, ending balance | $ 25 |
Restructuring Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2017 |
|||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Costs | [1] | $ 15 | $ 21 | $ 200 | $ 237 | ||
Restructuring Reserve | 241 | 241 | $ 208 | ||||
Restructuring Reserve, Current | 168 | 168 | |||||
Restructuring Reserve, Noncurrent | $ 73 | $ 73 | |||||
|
Earnings Per Share (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Common Shares Outstanding and Anti-dilutive Common Shares [Abstract] | ||||
Weighted average number of common shares outstanding, basic | 402.8 | 402.0 | 402.6 | 399.1 |
Dilutive effect of equity awards | 0.5 | 0.6 | 0.3 | 0.9 |
Weighted average number of common shares outstanding, diluted | 403.3 | 402.6 | 402.9 | 400.0 |
Anti-dilutive common shares | 18.9 | 16.8 | 19.2 | 14.7 |
Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for interest | $ 403 | $ 455 |
Cash paid for income taxes | $ 95 | $ 480 |
Supplemental Cash Flow and Other Information Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2017 |
|
Accounts Receivable [Abstract] | |||||
Accounts Receivable, Net, Noncurrent | $ 493 | $ 493 | $ 486 | ||
Acquisitions [Abstract] | |||||
Purchase Price Allocation | 70 | ||||
Investments [Abstract] | |||||
Cost-method Investments, Other than Temporary Impairment | $ 10 | 46 | $ 10 | ||
Proceeds from sale of EPIX | 593 | 0 | 593 | ||
Gain on sale of EPIX | 0 | $ 285 | 0 | $ 285 | |
Variable Interest Entities [Abstract] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 154 | 154 | 159 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | $ 6 | $ 6 | $ 8 | ||
Viacom18 [Member] | |||||
Equity Method Investment, Percentage Sold | 1.00% | ||||
Proceeds from Sale of Equity Method Investments | $ 20 | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 16 | ||||
EPIX [Member] | |||||
Equity Method Investment, Percentage Sold | 49.76% | 49.76% | |||
Transaction Costs Disposal Of Equity Method Investment | $ 4 | $ 4 | |||
Proceeds from Equity Method Investment, Distribution | $ 37 | $ 37 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jul. 01, 2018 |
Jan. 01, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2017 |
|
Income Taxes [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 24.50% | 35.00% | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 223 | ||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 4 | $ 69 | |||||
Effective Income Tax Rate Reconciliation, Percent | 15.30% | 25.30% | 10.60% | 25.40% | |||
Net Discrete Tax Benefit | $ 47 | $ 53 | $ 196 | $ 72 | |||
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | (7.90%) | (5.20%) | (13.40%) | (5.10%) | |||
Minimum | Scenario, Forecast | Subsequent Event | |||||||
Income Taxes [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 100 | ||||||
Maximum | Scenario, Forecast | Subsequent Event | |||||||
Income Taxes [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 150 |
Fair Value Measurements (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value of all foreign currency contracts | $ 665 | $ 869 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Noncurrent | 46 | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, Fair Value, Net | (4) | 7 |
Net Investments In Foreign Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value of all foreign currency contracts | 275 | 287 |
Future Production Costs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value of all foreign currency contracts | $ 390 | $ 582 |
Reportable Segments - Narrative (Details) |
9 Months Ended |
---|---|
Jun. 30, 2018
Segment
| |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Reportable Segments - Revenues by Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Segment Reporting Information [Line Items] | ||||
Eliminations | $ (37) | $ (43) | $ (90) | $ (99) |
Total revenues | 3,237 | 3,364 | 9,458 | 9,944 |
Media Networks | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,502 | 2,560 | 7,491 | 7,543 |
Filmed Entertainment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 772 | $ 847 | $ 2,057 | $ 2,500 |
Reportable Segments - Adjusted Operating Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
||||||
Segment Reporting Information [Line Items] | |||||||||
Restructuring and Related Costs | [1] | $ (15) | $ (21) | $ (200) | $ (237) | ||||
Operating income | 752 | 746 | 1,925 | 1,784 | |||||
Interest expense, net | (138) | (155) | (428) | (469) | |||||
Equity in net earnings of investee companies | 2 | 47 | 5 | 78 | |||||
Gain on sale of EPIX | 0 | 285 | 0 | 285 | |||||
Other items, net | (9) | (2) | (15) | (37) | |||||
Earnings from continuing operations before provision for income taxes | 607 | 921 | 1,487 | 1,641 | |||||
Media Networks | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Adjusted operating income (loss) by Segment | 799 | 870 | 2,418 | 2,604 | |||||
Restructuring and Related Costs | (163) | ||||||||
Filmed Entertainment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Adjusted operating income (loss) by Segment | 44 | 9 | (77) | (237) | |||||
Restructuring and Related Costs | 0 | ||||||||
Corporate expenses | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Corporate expenses | (60) | (58) | (175) | (163) | |||||
Restructuring and Related Costs | (37) | ||||||||
Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Eliminations | (6) | (8) | (2) | (1) | |||||
Operating Expense [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Programming charges | [2] | 0 | (38) | 0 | (144) | ||||
Selling, General and Administrative Expenses | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Equity-based compensation | $ (10) | (8) | (39) | (38) | |||||
Allocated Share-Based Compensation Expense [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Restructuring | $ (6) | $ 6 | $ 14 | ||||||
|
Reportable Segments - Total Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total assets | $ 23,161 | $ 23,698 |
Media Networks | ||
Segment Reporting Information [Line Items] | ||
Total assets | 17,456 | 17,984 |
Filmed Entertainment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,396 | 6,188 |
Corporate/Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 309 | $ (474) |
Reportable Segments - Revenues by Component (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 3,237 | $ 3,364 | $ 9,458 | $ 9,944 |
Advertising | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 1,191 | 1,235 | 3,604 | 3,638 |
Affiliate | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 1,153 | 1,190 | 3,403 | 3,490 |
Feature film | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 731 | 781 | 1,917 | 2,244 |
Ancillary | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 199 | 201 | 624 | 671 |
Revenue Reconciling Items | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ (37) | $ (43) | $ (90) | $ (99) |
Related Party Transactions Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Related Party Transactions [Abstract] | ||
Ownership Percent Of Class A Stock By Controlling Stockholder | 79.80% | |
Ownership Percent Of Class A And Class B Stock By Controlling Stockholder | 10.00% | |
Percentage Of Voting Interest Controlled By The Chairman Of The Controlling Stockholder Entity | 80.00% | |
Percentage Of Voting Interest Controlled By Non-Chairman Member Of The Controlling Stockholder Entity | 20.00% | |
NAI license revenues earned | $ 5 | $ 5 |
Related Party Transactions (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2017 |
|
CBS | |||||
Consolidated Statements of Earnings | |||||
Revenues | $ 21 | $ 25 | $ 90 | $ 99 | |
Operating expenses | 25 | 39 | 110 | 129 | |
Consolidated Balance Sheets [Abstract] | |||||
Accounts receivable | 7 | 7 | $ 5 | ||
Participants’ share and residuals, current | 69 | 69 | 69 | ||
Program obligations, current | 37 | 37 | 54 | ||
Program obligations, noncurrent | 38 | 38 | 49 | ||
Other liabilities | 1 | 1 | 1 | ||
Total due to CBS and other related parties | 145 | 145 | 173 | ||
Other Related Parties | |||||
Consolidated Statements of Earnings | |||||
Revenues | 7 | 15 | 38 | 110 | |
Operating expenses | 3 | 2 | 8 | 59 | |
Selling, general and administrative | 0 | $ (1) | 0 | $ (7) | |
Consolidated Balance Sheets [Abstract] | |||||
Accounts receivable | 41 | 41 | 49 | ||
Other assets | 3 | 3 | 5 | ||
Total due from CBS and other related parties | 44 | 44 | 54 | ||
Accounts payable | 6 | 6 | 8 | ||
Other liabilities | 5 | 5 | 0 | ||
Total due to CBS and other related parties | $ 11 | $ 11 | $ 8 |
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