2021 Form 10-K Financial Statement

#000143710722000031 Filed on February 24, 2022

View on sec.gov

Income Statement

Concept 2021 2020 Q4 2020
Revenue $12.19B $2.886B $10.67B
YoY Change 14.24% 0.42% -4.24%
Cost Of Revenue $4.615B $1.089B $3.812B
YoY Change 21.07% 11.46% 1.6%
Gross Profit $7.576B $1.797B $6.859B
YoY Change 10.45% -5.27% -7.21%
Gross Profit Margin 62.14% 62.27% 64.28%
Selling, General & Admin $4.016B $809.0M $2.722B
YoY Change 47.54% 2.02% -2.37%
% of Gross Profit 53.01% 45.02% 39.69%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.582B $4.315B $1.359B
YoY Change 16.41% 289.44% 0.89%
% of Gross Profit 20.88% 240.12% 19.81%
Operating Expenses $4.016B $1.167B $2.722B
YoY Change 47.54% 3.64% -2.37%
Operating Profit $2.012B $630.0M $2.515B
YoY Change -20.0% -10.64% -16.42%
Interest Expense $633.0M -$65.00M $648.0M
YoY Change -2.31% -53.9% -4.28%
% of Operating Profit 31.46% -10.32% 25.77%
Other Income/Expense, Net $82.00M $1.000M $42.00M
YoY Change 95.24% -200.0% -625.0%
Pretax Income $1.433B $416.0M $1.728B
YoY Change -17.07% -26.11% -24.67%
Income Tax $236.0M $98.00M $373.0M
% Of Pretax Income 16.47% 23.56% 21.59%
Net Earnings $1.006B $271.0M $1.219B
YoY Change -17.47% -43.07% -41.08%
Net Earnings / Revenue 8.25% 9.39% 11.42%
Basic Earnings Per Share $1.55 $1.82
Diluted Earnings Per Share $1.515M $412.5K $1.814M
COMMON SHARES
Basic Shares Outstanding 588.0M shares 599.0M shares
Diluted Shares Outstanding 664.0M shares 672.0M shares

Balance Sheet

Concept 2021 2020 Q4 2020
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.905B $2.091B $2.091B
YoY Change 86.75% 34.73% 34.73%
Cash & Equivalents $3.905B $2.091B $2.091B
Short-Term Investments
Other Short-Term Assets $913.0M $1.502B $1.502B
YoY Change -39.21% 45.54% 45.54%
Inventory
Prepaid Expenses
Receivables $2.446B $2.537B $2.537B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $7.264B $6.130B $6.130B
YoY Change 18.5% 17.5% 17.5%
LONG-TERM ASSETS
Property, Plant & Equipment $1.871B $1.206B $1.781B
YoY Change 5.05% 26.81% 13.87%
Goodwill $13.07B
YoY Change 0.15%
Intangibles $7.640B
YoY Change -11.85%
Long-Term Investments $543.0M $507.0M $507.0M
YoY Change 7.1% -10.74% -10.74%
Other Assets $1.688B $2.095B $1.520B
YoY Change 11.05% -2.69% -1.3%
Total Long-Term Assets $27.16B $27.96B $27.96B
YoY Change -2.84% -1.97% -1.97%
TOTAL ASSETS
Total Short-Term Assets $7.264B $6.130B $6.130B
Total Long-Term Assets $27.16B $27.96B $27.96B
Total Assets $34.43B $34.09B $34.09B
YoY Change 1.0% 1.04% 1.04%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $412.0M $397.0M $397.0M
YoY Change 3.78% -14.25% -14.25%
Accrued Expenses $2.172B $1.793B $1.736B
YoY Change 25.12% 6.85% 8.09%
Deferred Revenue $557.0M
YoY Change 13.91%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $397.0M $335.0M $392.0M
YoY Change 1.28% -44.99% -40.24%
Total Short-Term Liabilities $3.459B $3.082B $3.082B
YoY Change 12.23% -4.85% -4.85%
LONG-TERM LIABILITIES
Long-Term Debt $14.62B $15.07B $15.25B
YoY Change -4.17% 1.75% 1.6%
Other Long-Term Liabilities $1.730B $2.019B $1.835B
YoY Change -5.72% -0.49% 0.49%
Total Long-Term Liabilities $16.35B $17.09B $17.09B
YoY Change -4.34% 1.48% 1.48%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.459B $3.082B $3.082B
Total Long-Term Liabilities $16.35B $17.09B $17.09B
Total Liabilities $22.83B $21.70B $23.62B
YoY Change -3.37% -0.3% -0.93%
SHAREHOLDERS EQUITY
Retained Earnings $8.543B
YoY Change 16.5%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $8.244B
YoY Change 11.8%
Treasury Stock Shares 230.0M shares
Shareholders Equity $11.60B $10.46B $10.46B
YoY Change
Total Liabilities & Shareholders Equity $34.43B $34.09B $34.09B
YoY Change 1.0% 1.04% 1.04%

Cashflow Statement

Concept 2021 2020 Q4 2020
OPERATING ACTIVITIES
Net Income $1.006B $271.0M $1.219B
YoY Change -17.47% -43.07% -41.08%
Depreciation, Depletion And Amortization $1.582B $4.315B $1.359B
YoY Change 16.41% 289.44% 0.89%
Cash From Operating Activities $2.798B $2.739B $2.739B
YoY Change 2.15% 122.32% -19.42%
INVESTING ACTIVITIES
Capital Expenditures $373.0M -$402.0M $402.0M
YoY Change -7.21% -502.0% 39.1%
Acquisitions $2.000M $39.00M
YoY Change -94.87% -46.58%
Other Investing Activities -$93.00M -$301.0M -$15.00M
YoY Change 520.0% 540.43% -1600.0%
Cash From Investing Activities -$56.00M -$703.0M -$703.0M
YoY Change -92.03% 378.23% 60.5%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$853.0M -1.549B -$1.549B
YoY Change -44.93% 324.38% -34.28%
NET CHANGE
Cash From Operating Activities $2.798B 2.739B $2.739B
Cash From Investing Activities -$56.00M -703.0M -$703.0M
Cash From Financing Activities -$853.0M -1.549B -$1.549B
Net Change In Cash $1.783B 487.0M $570.0M
YoY Change 212.81% -32.36% 0.71%
FREE CASH FLOW
Cash From Operating Activities $2.798B $2.739B $2.739B
Capital Expenditures $373.0M -$402.0M $402.0M
Free Cash Flow $2.425B $3.141B $2.337B
YoY Change 3.77% 177.47% -24.86%

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CY2020 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2019 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2020 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2019 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2020 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification And Tax
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CY2019 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification And Tax
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CY2020 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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1526000000 USD
CY2019 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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2206000000 USD
CY2021 disca Comprehensive Income Loss Net Of Tax Attributable To Nonredeemable Noncontrolling Interest
ComprehensiveIncomeLossNetOfTaxAttributableToNonredeemableNoncontrollingInterest
138000000 USD
CY2020 disca Comprehensive Income Loss Net Of Tax Attributable To Nonredeemable Noncontrolling Interest
ComprehensiveIncomeLossNetOfTaxAttributableToNonredeemableNoncontrollingInterest
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CY2019 disca Comprehensive Income Loss Net Of Tax Attributable To Nonredeemable Noncontrolling Interest
ComprehensiveIncomeLossNetOfTaxAttributableToNonredeemableNoncontrollingInterest
127000000 USD
CY2021 disca Comprehensive Income Loss Netof Tax Attributableto Redeemable Noncontrolling Interest
ComprehensiveIncomeLossNetofTaxAttributabletoRedeemableNoncontrollingInterest
53000000 USD
CY2020 disca Comprehensive Income Loss Netof Tax Attributableto Redeemable Noncontrolling Interest
ComprehensiveIncomeLossNetofTaxAttributabletoRedeemableNoncontrollingInterest
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CY2021 us-gaap Comprehensive Income Net Of Tax
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CY2020 us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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CY2019 us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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CY2019 us-gaap Gains Losses On Extinguishment Of Debt
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CY2021 us-gaap Share Based Compensation
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CY2019 us-gaap Share Based Compensation
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CY2019 us-gaap Increase Decrease In Accounts And Notes Receivable
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CY2021 disca Increase Decrease In Content Rights And Payables
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CY2020 disca Increase Decrease In Content Rights And Payables
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CY2019 disca Increase Decrease In Content Rights And Payables
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CY2020 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2019 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2020 us-gaap Payments For Repurchase Of Equity
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CY2020 us-gaap Repayments Of Lines Of Credit
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CY2020 us-gaap Proceeds From Lines Of Credit
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CY2019 us-gaap Proceeds From Lines Of Credit
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CY2021 us-gaap Payments Of Dividends Minority Interest
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CY2019 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2019 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019 us-gaap Net Income Loss Including Portion Attributable To Nonredeemable Noncontrolling Interest
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CY2019Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2020 disca Temporary Equity Adjustment To Redemption Value
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CY2020 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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CY2020Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2021 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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158000000 USD
CY2021 us-gaap Conversion Of Stock Amount Converted1
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CY2021 disca Tax Settlements Associated With Equity Based Plans
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CY2021 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
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240000000 USD
CY2021 us-gaap Stock Issued During Period Value Stock Options Exercised
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CY2021 disca Temporary Equity Adjustment To Redemption Value
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13033000000 USD
CY2021 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
CY2021 us-gaap Use Of Estimates
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<div style="margin-top:14pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. </span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Significant estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, estimated credit losses, content rights, leases, depreciation and amortization, business combinations, share-based compensation, income taxes, other financial instruments, contingencies, and the determination of whether the Company should consolidate certain entities.</span></div>
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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0
CY2021 us-gaap Advertising Expense
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1200000000 USD
CY2020 us-gaap Advertising Expense
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412000000 USD
CY2019 us-gaap Advertising Expense
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390000000 USD
CY2021 us-gaap Concentration Risk Credit Risk
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<div style="margin-top:14pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Concentrations Risk</span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Customers</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company has long-term contracts with distributors around the world. For the U.S. Networks segment, 84% of distribution revenue comes from the 10 largest distributors. Agreements in place with the 10 largest cable and satellite operators with the U.S. Networks expire at various times from 2022 through 2025. Although the Company seeks to renew its agreements with its distributors prior to expiration of a contract, a delay in securing a renewal that results in a service disruption, a failure to secure a renewal or a renewal on less favorable terms may have a material adverse effect on the Company’s financial condition and results of operations. Not only could the Company experience a reduction in distribution revenue, but it could also experience a reduction in advertising revenue, as viewership is impacted by affiliate subscriber levels. </span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">No individual customer accounted for more than 10% of total consolidated revenues for 2021, 2020 or 2019. As of December 31, 2021 and 2020, the Company’s trade receivables do not represent a significant concentration of credit risk as the customers and markets in which the Company operates are varied and dispersed across many geographic areas.</span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Financial Institutions</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk.</span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Counterparty Credit Risk</span></div>The Company is exposed to the risk that the counterparties to outstanding derivative financial instruments will default on their obligations. The Company manages these credit risks through the evaluation and monitoring of the creditworthiness of, and concentration of risk with, the respective counterparties. In this regard, credit risk associated with outstanding derivative financial instruments is spread across a relatively broad counterparty base of banks and financial institutions. The Company also has a limited number of arrangements where collateral is required to be posted in the instance that certain fair value thresholds are exceeded.
CY2021 disca Number Of Largest Distributors
NumberOfLargestDistributors
10 distributor
CY2021 disca Number Of Largest Cable And Satellite Operators
NumberOfLargestCableAndSatelliteOperators
10 segment
CY2021Q4 disca Content Library Net Current
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245000000 USD
CY2020Q4 disca Content Library Net Current
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532000000 USD
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-26000000 USD
CY2021Q4 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
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496000000 USD
CY2020Q4 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
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541000000 USD
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CY2020Q4 us-gaap Investments
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CY2021 us-gaap Equity Securities Fv Ni Gain Loss
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9000000 USD
CY2020 us-gaap Equity Securities Fv Ni Gain Loss
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129000000 USD
CY2019 us-gaap Equity Securities Fv Ni Gain Loss
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CY2021 us-gaap Equity Securities Fv Ni Realized Gain Loss
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15000000 USD
CY2020 us-gaap Equity Securities Fv Ni Realized Gain Loss
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CY2019 us-gaap Equity Securities Fv Ni Realized Gain Loss
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P3Y
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0
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32000000 USD
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