QVC Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Other Information

Other Information

9 Months Ended

Sep. 30, 2013

Other Information [Abstract]

Other Information

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):



	September 30, 2013		December 31, 2012
Royalties, residuals and participations	$	78,886	$	72,139
Participations payable to TWC	79,352		23,861
Program rights payable	59,198		57,125
Advertising and marketing	47,302		38,779
Payroll and related costs	21,731		23,657
Accrued compensation related to long term incentive plan	—		3,195
Other	34,889		37,306
	$	321,358	$	256,062

Supplemental Disclosure of Cash Flow Information

The following table presents the supplemental disclosure of cash flow information (in thousands):



	Nine Months Ended September 30,
	2013		2012

Cash paid for interest, net of amounts capitalized	$	40,665	$	12,525
Cash paid for income taxes	$	135,516	$	126,582
Change in deferred tax assets due to sale of noncontrolling interest	$	—	$	2,209
Distribution of corporate office building to Old LMC	$	45,668	$	—
Capital lease related to Commercial Lease with LPH	$	44,800	$	—
Tax attributes related to LMC Spin-Off	$	11,253	$	—

Net Income Attributable to Common Stockholders

Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. For presentation purposes, the basic weighted average number of common shares reflected as outstanding for all periods prior to the LMC Spin-Off (including as of September 30, 2012) represents the shares outstanding as of January 14, 2013, excluding unvested outstanding restricted shares as of any applicable date. The diluted weighted average number of common shares reflected as outstanding for the three and nine months ended September 30, 2012 includes the unvested outstanding restricted shares actually held by Starz employees as of September 30, 2012, and excludes restricted shares and stock options issued to others in the LMC Spin-Off (which are included, if dilutive, in periods subsequent to the LMC Spin-Off).

The following is a reconciliation between basic and diluted weighted average shares outstanding for the three and nine months ended September 30, 2013 and reflected as outstanding for the three and nine months ended September 30, 2012 (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2013	2012	2013	2012

Basic weighted average shares outstanding	114,621	119,996	117,616	119,996
Effect of dilution:
Stock options	4,215	—	3,324	—
Restricted shares	1,686	51	1,686	51
Diluted weighted average shares outstanding	120,522	120,047	122,626	120,047

For the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013, and 2012, approximately none, 9.5 million shares, 2.0 million and 9.9 million shares (as adjusted for the LMC Spin-Off), respectively, have been excluded from the diluted weighted average shares outstanding since the shares would have been anti-dilutive.

Recent Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board amended the Accounting Standards Codification as summarized in Accounting Standards Update (“ASU”) 2013-11 Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent that the deferred tax asset is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for fiscal years and interim periods beginning after December 15, 2013. Starz does not believe that the amendment will have any significant impact on its condensed consolidated financial statements.