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, 2014

Other Information [Abstract]

Other Information

Accrued Liabilities

Accrued liabilities consist of the following (in millions):



	September 30, 2014		December 31, 2013
Royalties, residuals and participations	$	70.5	$	81.4
Program rights payable	53.1		32.2
Advertising and marketing	39.6		41.6
Participations payable to Weinstein	31.3		75.9
Payroll and related costs	23.9		28.7
Other	26.3		38.0
	$	244.7	$	297.8

Supplemental Disclosure of Cash Flow Information

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



	Nine Months Ended September 30,
	2014		2013
Cash paid for interest, net of amounts capitalized	$	41.3	$	40.7
Cash paid for income taxes	$	76.9	$	135.5
Distribution of corporate office building to Old LMC	$	—	$	45.7
Capital lease related to commercial lease with subsidiary of Liberty Media	$	—	$	44.8
Tax attributes related to LMC Spin-Off	$	—	$	11.3

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. The following is a reconciliation between basic and diluted weighted average shares outstanding (in millions):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
Basic weighted average shares outstanding	104.7	114.6	106.6	117.6
Effect of dilution:
Stock options	5.3	4.2	5.4	3.3
Restricted shares	1.1	1.7	1.1	1.7
Diluted weighted average shares outstanding	111.1	120.5	113.1	122.6

For the three months ended September 30, 2014 and 2013 and the nine months ended September 30, 2014, and 2013, approximately none, none, none and 2.0 million shares, respectively, have been excluded from the diluted weighted average shares outstanding since the shares would have been anti-dilutive.

Other Income (Expense), Net

In June 2014, Starz received a distribution of $10.7 million from Revolution Studios Holding Company, LLC (“Revolution”), an equity investee in which Starz holds a 15% ownership interest, related to the sale of all of its assets. Starz accounts for its investment in Revolution using the equity method and previously reduced its investment to zero in 2006. Accordingly, the $10.7 million was treated as other income during the nine months ended September 30, 2014.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board issued the Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (Topic 606). ASU 2014-09 replaces the majority of all U.S. GAAP guidance that currently exists on revenue recognition with a single model to be applied to all contracts with customers. The core principle of ASU 2014-09 is that “an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.”

For a public entity, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. An entity must apply ASU 2014-09 using either the full retrospective approach, by restating all years presented, or the cumulative effect at the date of adoption approach.

Starz is currently assessing the impact that these changes will have on its consolidated financial statements and therefore is unable to quantify such impact or determine the method of adoption.