|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
(State or other jurisdiction of
incorporation or organization)
|
04-2949533
(I.R.S. Employer Identification No.)
|
|
|
51 W. 52
nd
Street, New York, New York
(Address of principal executive offices)
|
10019
(Zip Code)
|
Large accelerated filer
x
|
|
Accelerated filer
o
|
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
|
Emerging growth company
o
|
|
|
|
Page
|
|
PART I – FINANCIAL INFORMATION
|
|
|
|
|
|
||
|
|
|
|
Consolidated Statements of Operations (Unaudited) for the
Three Months Ended March 31, 2018 and March 31, 2017 |
|
|
|
|
|
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the
Three Months Ended March 31, 2018 and March 31, 2017 |
|
|
|
|
|
Consolidated Balance Sheets (Unaudited) at March 31, 2018
and December 31, 2017 |
|
|
|
|
|
Consolidated Statements of Cash Flows (Unaudited) for the
Three Months Ended March 31, 2018 and March 31, 2017 |
|
|
|
|
|
||
|
|
|
Management’s Discussion and Analysis of Results of Operations and Financial Condition.
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
Financial Statements.
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Revenues
|
$
|
3,761
|
|
|
$
|
3,343
|
|
Costs and expenses:
|
|
|
|
|
|
||
Operating
|
2,400
|
|
|
2,074
|
|
||
Selling, general and administrative
|
524
|
|
|
488
|
|
||
Depreciation and amortization
|
56
|
|
|
55
|
|
||
Merger and acquisition-related costs
|
9
|
|
|
—
|
|
||
Total costs and expenses
|
2,989
|
|
|
2,617
|
|
||
Operating income
|
772
|
|
|
726
|
|
||
Interest expense
|
(118
|
)
|
|
(109
|
)
|
||
Interest income
|
17
|
|
|
13
|
|
||
Other items, net
|
(11
|
)
|
|
(21
|
)
|
||
Earnings from continuing operations before income taxes and
equity in loss of investee companies
|
660
|
|
|
609
|
|
||
Provision for income taxes
|
(135
|
)
|
|
(138
|
)
|
||
Equity in loss of investee companies, net of tax
|
(14
|
)
|
|
(17
|
)
|
||
Net earnings from continuing operations
|
511
|
|
|
454
|
|
||
Net loss from discontinued operations, net of tax (Note 3)
|
—
|
|
|
(706
|
)
|
||
Net earnings (loss)
|
$
|
511
|
|
|
$
|
(252
|
)
|
|
|
|
|
||||
Basic net earnings (loss) per common share:
|
|
|
|
|
|
||
Net earnings from continuing operations
|
$
|
1.34
|
|
|
$
|
1.11
|
|
Net loss from discontinued operations
|
$
|
—
|
|
|
$
|
(1.72
|
)
|
Net earnings (loss)
|
$
|
1.34
|
|
|
$
|
(.61
|
)
|
|
|
|
|
||||
Diluted net earnings (loss) per common share:
|
|
|
|
|
|
||
Net earnings from continuing operations
|
$
|
1.32
|
|
|
$
|
1.09
|
|
Net loss from discontinued operations
|
$
|
—
|
|
|
$
|
(1.70
|
)
|
Net earnings (loss)
|
$
|
1.32
|
|
|
$
|
(.61
|
)
|
|
|
|
|
||||
Weighted average number of common shares outstanding:
|
|
|
|
|
|
||
Basic
|
382
|
|
|
410
|
|
||
Diluted
|
386
|
|
|
416
|
|
||
|
|
|
|
||||
Dividends per common share
|
$
|
.18
|
|
|
$
|
.18
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Net earnings (loss)
|
$
|
511
|
|
|
$
|
(252
|
)
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Cumulative translation adjustments
|
(6
|
)
|
|
2
|
|
||
Amortization of net actuarial loss
|
15
|
|
|
12
|
|
||
Total other comprehensive income, net of tax
|
9
|
|
|
14
|
|
||
Total comprehensive income (loss)
|
$
|
520
|
|
|
$
|
(238
|
)
|
|
At
|
|
At
|
||||||||
|
March 31, 2018
|
|
December 31, 2017
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||
Current Assets:
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
147
|
|
|
|
|
$
|
285
|
|
|
Receivables, less allowances of $49 (2018 and 2017)
|
|
3,820
|
|
|
|
|
3,697
|
|
|
||
Programming and other inventory (Note 4)
|
|
1,593
|
|
|
|
|
1,828
|
|
|
||
Prepaid income taxes
|
|
52
|
|
|
|
|
78
|
|
|
||
Prepaid expenses
|
|
164
|
|
|
|
|
194
|
|
|
||
Other current assets
|
|
415
|
|
|
|
|
191
|
|
|
||
Total current assets
|
|
6,191
|
|
|
|
|
6,273
|
|
|
||
Property and equipment
|
|
3,036
|
|
|
|
|
3,051
|
|
|
||
Less accumulated depreciation and amortization
|
|
1,777
|
|
|
|
|
1,771
|
|
|
||
Net property and equipment
|
|
1,259
|
|
|
|
|
1,280
|
|
|
||
Programming and other inventory (Note 4)
|
|
3,252
|
|
|
|
|
2,881
|
|
|
||
Goodwill
|
|
4,891
|
|
|
|
|
4,891
|
|
|
||
Intangible assets
|
|
2,661
|
|
|
|
|
2,666
|
|
|
||
Other assets
|
|
2,337
|
|
|
|
|
2,852
|
|
|
||
Total Assets
|
|
$
|
20,591
|
|
|
|
|
$
|
20,843
|
|
|
|
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS
’
EQUITY
|
|
|
|
|
|
|
|
|
|
||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
230
|
|
|
|
|
$
|
231
|
|
|
Accrued compensation
|
|
198
|
|
|
|
|
343
|
|
|
||
Participants’ share and royalties payable
|
|
1,104
|
|
|
|
|
986
|
|
|
||
Program rights
|
|
631
|
|
|
|
|
373
|
|
|
||
Short-term debt (Note 6)
|
|
217
|
|
|
|
|
679
|
|
|
||
Current portion of long-term debt (Note 6)
|
|
19
|
|
|
|
|
19
|
|
|
||
Accrued expenses and other current liabilities
|
|
1,670
|
|
|
|
|
1,341
|
|
|
||
Total current liabilities
|
|
4,069
|
|
|
|
|
3,972
|
|
|
||
Long-term debt (Note 6)
|
|
9,470
|
|
|
|
|
9,464
|
|
|
||
Pension and postretirement benefit obligations
|
|
1,309
|
|
|
|
|
1,328
|
|
|
||
Deferred income tax liabilities, net
|
|
493
|
|
|
|
|
480
|
|
|
||
Other liabilities
|
|
3,267
|
|
|
|
|
3,621
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Commitments and contingencies (Note 14)
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Stockholders
’
Equity:
|
|
|
|
|
|
|
|
|
|
||
Class A Common Stock, par value $.001 per share; 375 shares authorized;
38 (2018 and 2017) shares issued |
|
—
|
|
|
|
|
—
|
|
|
||
Class B Common Stock, par value $.001 per share; 5,000 shares authorized;
835 (2018) and 834 (2017) shares issued |
|
1
|
|
|
|
|
1
|
|
|
||
Additional paid-in capital
|
|
43,743
|
|
|
|
|
43,797
|
|
|
||
Accumulated deficit
|
|
(18,650
|
)
|
|
|
|
(18,900
|
)
|
|
||
Accumulated other comprehensive loss (Note 8)
|
|
(653
|
)
|
|
|
|
(662
|
)
|
|
||
|
|
24,441
|
|
|
|
|
24,236
|
|
|
||
Less treasury stock, at cost; 492 (2018) and 489 (2017) Class B shares
|
|
22,458
|
|
|
|
|
22,258
|
|
|
||
Total Stockholders
’
Equity
|
|
1,983
|
|
|
|
|
1,978
|
|
|
||
Total Liabilities and Stockholders
’
Equity
|
|
$
|
20,591
|
|
|
|
|
$
|
20,843
|
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Operating Activities:
|
|
|
|
||||
Net earnings (loss)
|
$
|
511
|
|
|
$
|
(252
|
)
|
Less: Net loss from discontinued operations, net of tax
|
—
|
|
|
(706
|
)
|
||
Net earnings from continuing operations
|
511
|
|
|
454
|
|
||
Adjustments to reconcile net earnings from continuing operations to net cash flow
provided by operating activities from continuing operations:
|
|
|
|
|
|
||
Depreciation and amortization
|
56
|
|
|
55
|
|
||
Stock-based compensation
|
44
|
|
|
40
|
|
||
Equity in loss of investee companies, net of tax and distributions
|
14
|
|
|
17
|
|
||
Change in assets and liabilities, net of investing and financing activities
|
92
|
|
|
112
|
|
||
Net cash flow provided by operating activities from continuing operations
|
717
|
|
|
678
|
|
||
Net cash flow provided by operating activities from discontinued operations
|
—
|
|
|
41
|
|
||
Net cash flow provided by operating activities
|
717
|
|
|
719
|
|
||
Investing Activities:
|
|
|
|
|
|
||
Investments in and advances to investee companies
|
(40
|
)
|
|
(49
|
)
|
||
Capital expenditures
|
(30
|
)
|
|
(27
|
)
|
||
Acquisitions
|
—
|
|
|
(21
|
)
|
||
Other investing activities
|
3
|
|
|
15
|
|
||
Net cash flow used for investing activities from continuing operations
|
(67
|
)
|
|
(82
|
)
|
||
Net cash flow used for investing activities from discontinued operations
|
(23
|
)
|
|
(7
|
)
|
||
Net cash flow used for investing activities
|
(90
|
)
|
|
(89
|
)
|
||
Financing Activities:
|
|
|
|
|
|
||
Repayments of short-term debt borrowings, net
|
(462
|
)
|
|
(420
|
)
|
||
Repayment of debt borrowings of CBS Radio
|
—
|
|
|
(3
|
)
|
||
Payment of capital lease obligations
|
(4
|
)
|
|
(4
|
)
|
||
Payment of contingent consideration
|
(5
|
)
|
|
(7
|
)
|
||
Dividends
|
(71
|
)
|
|
(77
|
)
|
||
Purchase of Company common stock
|
(186
|
)
|
|
(531
|
)
|
||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation
|
(52
|
)
|
|
(76
|
)
|
||
Proceeds from exercise of stock options
|
16
|
|
|
36
|
|
||
Other financing activities
|
(1
|
)
|
|
—
|
|
||
Net cash flow used for financing activities
|
(765
|
)
|
|
(1,082
|
)
|
||
Net decrease in cash and cash equivalents
|
(138
|
)
|
|
(452
|
)
|
||
Cash and cash equivalents at beginning of period
(includes $24 (2017) of discontinued operations cash)
|
285
|
|
|
622
|
|
||
Cash and cash equivalents at end of period
(includes $7 (2017) of discontinued operations cash)
|
$
|
147
|
|
|
$
|
170
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
|
||
Cash paid for interest:
|
|
|
|
||||
Continuing operations
|
$
|
182
|
|
|
$
|
162
|
|
Discontinued operations
|
$
|
—
|
|
|
$
|
11
|
|
|
|
|
|
||||
Cash paid for income taxes:
|
|
|
|
||||
Continuing operations
|
$
|
29
|
|
|
$
|
1
|
|
Discontinued operations
|
$
|
—
|
|
|
$
|
12
|
|
|
Three Months Ended
|
||||
|
March 31,
|
||||
(in millions)
|
2018
|
|
2017
|
||
Weighted average shares for basic EPS
|
382
|
|
|
410
|
|
Dilutive effect of shares issuable under stock-based
compensation plans
|
4
|
|
|
6
|
|
Weighted average shares for diluted EPS
|
386
|
|
|
416
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
RSUs and PSUs
|
$
|
38
|
|
|
$
|
33
|
|
Stock options
|
6
|
|
|
7
|
|
||
Stock-based compensation expense, before income taxes
|
44
|
|
|
40
|
|
||
Related tax benefit
|
(11
|
)
|
|
(15
|
)
|
||
Stock-based compensation expense, net of tax benefit
|
$
|
33
|
|
|
$
|
25
|
|
|
Three Months Ended
March 31, 2017
|
||
Revenues
|
$
|
250
|
|
Costs and expenses:
|
|
|
|
Operating
|
89
|
|
|
Selling, general and administrative
|
122
|
|
|
Market value adjustment
(a)
|
715
|
|
|
Total costs and expenses
|
926
|
|
|
Operating loss
|
(676
|
)
|
|
Interest expense
|
(19
|
)
|
|
Loss from discontinued operations
|
(695
|
)
|
|
Income tax provision
|
(11
|
)
|
|
Net loss from discontinued operations, net of tax
|
$
|
(706
|
)
|
|
At
|
|
At
|
||||||||
|
March 31, 2018
|
|
December 31, 2017
|
||||||||
Acquired program rights
|
|
$
|
2,008
|
|
|
|
|
$
|
2,234
|
|
|
Acquired television library
|
|
99
|
|
|
|
|
99
|
|
|
||
Internally produced programming:
|
|
|
|
|
|
|
|
||||
Released
|
|
2,089
|
|
|
|
|
1,780
|
|
|
||
In process and other
|
|
590
|
|
|
|
|
543
|
|
|
||
Publishing, primarily finished goods
|
|
59
|
|
|
|
|
53
|
|
|
||
Total programming and other inventory
|
|
4,845
|
|
|
|
|
4,709
|
|
|
||
Less current portion
|
|
1,593
|
|
|
|
|
1,828
|
|
|
||
Total noncurrent programming and other inventory
|
|
$
|
3,252
|
|
|
|
|
$
|
2,881
|
|
|
|
At
|
|
At
|
||||||||
|
March 31, 2018
|
|
December 31, 2017
|
||||||||
Receivables
|
|
$
|
43
|
|
|
|
|
$
|
93
|
|
|
Other assets (Receivables, noncurrent)
|
|
14
|
|
|
|
|
11
|
|
|
||
Total amounts due from Viacom Inc
.
|
|
$
|
57
|
|
|
|
|
$
|
104
|
|
|
|
At
|
|
At
|
||||||||
|
March 31, 2018
|
|
December 31, 2017
|
||||||||
Commercial paper
|
|
$
|
197
|
|
|
|
|
$
|
679
|
|
|
Short-term bank borrowings
|
|
20
|
|
|
|
|
—
|
|
|
||
Senior debt (2.30% - 7.875% due 2019 - 2045)
(a)
|
|
9,428
|
|
|
|
|
9,426
|
|
|
||
Obligations under capital leases
|
|
61
|
|
|
|
|
57
|
|
|
||
Total debt
|
|
9,706
|
|
|
|
|
10,162
|
|
|
||
Less short-term debt
|
|
217
|
|
|
|
|
679
|
|
|
||
Less current portion of long-term debt
|
|
19
|
|
|
|
|
19
|
|
|
||
Total long-term debt, net of current portion
|
|
$
|
9,470
|
|
|
|
|
$
|
9,464
|
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||
Three Months Ended March 31,
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Components of net periodic cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
37
|
|
|
48
|
|
|
4
|
|
|
4
|
|
||||
Expected return on plan assets
|
(45
|
)
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of actuarial loss (gain)
(a)
|
24
|
|
|
25
|
|
|
(5
|
)
|
|
(5
|
)
|
||||
Net periodic cost
|
$
|
24
|
|
|
$
|
30
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
Cumulative
Translation
Adjustments
|
|
Net Actuarial
Loss and Prior
Service Cost
|
|
Accumulated
Other
Comprehensive Loss
|
||||||||
At December 31, 2017
|
$
|
159
|
|
|
$
|
(821
|
)
|
|
|
$
|
(662
|
)
|
|
Other comprehensive income before reclassifications
|
(6
|
)
|
|
—
|
|
|
|
(6
|
)
|
|
|||
Reclassifications to net earnings
|
—
|
|
|
15
|
|
(a)
|
|
15
|
|
|
|||
Net other comprehensive income (loss)
|
(6
|
)
|
|
15
|
|
|
|
9
|
|
|
|||
At March 31, 2018
|
$
|
153
|
|
|
$
|
(806
|
)
|
|
|
$
|
(653
|
)
|
|
|
Cumulative
Translation
Adjustments
|
|
Net Actuarial
Loss and Prior
Service Cost
|
|
Accumulated
Other
Comprehensive Loss
|
||||||||
At December 31, 2016
|
$
|
151
|
|
|
$
|
(918
|
)
|
|
|
$
|
(767
|
)
|
|
Other comprehensive income before reclassifications
|
2
|
|
|
—
|
|
|
|
2
|
|
|
|||
Reclassifications to net loss
|
—
|
|
|
12
|
|
(a)
|
|
12
|
|
|
|||
Net other comprehensive income
|
2
|
|
|
12
|
|
|
|
14
|
|
|
|||
At March 31, 2017
|
$
|
153
|
|
|
$
|
(906
|
)
|
|
|
$
|
(753
|
)
|
|
(a)
|
Reflects amortization of net actuarial losses. See Note
7
.
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Provision for income taxes, including interest and before other discrete items
(a)
|
$
|
(138
|
)
|
|
$
|
(185
|
)
|
Excess tax benefits from stock-based compensation
(b)
|
—
|
|
|
27
|
|
||
Other discrete items
(c)
|
3
|
|
|
20
|
|
||
Provision for income taxes
|
$
|
(135
|
)
|
|
$
|
(138
|
)
|
Effective income tax rate
|
20.5
|
%
|
|
22.7
|
%
|
|
Balance at
|
|
2018
|
|
Balance at
|
||||||||||||
|
December 31, 2017
|
|
Settlements
|
|
March 31, 2018
|
||||||||||||
Entertainment
|
|
$
|
45
|
|
|
|
|
$
|
(10
|
)
|
|
|
|
$
|
35
|
|
|
Cable Networks
|
|
1
|
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|||
Publishing
|
|
3
|
|
|
|
|
(1
|
)
|
|
|
|
2
|
|
|
|||
Local Media
|
|
14
|
|
|
|
|
(1
|
)
|
|
|
|
13
|
|
|
|||
Corporate
|
|
3
|
|
|
|
|
(1
|
)
|
|
|
|
2
|
|
|
|||
Total
|
|
$
|
66
|
|
|
|
|
$
|
(13
|
)
|
|
|
|
$
|
53
|
|
|
|
Balance at
|
|
2017
|
|
2017
|
|
Balance at
|
||||||||||||||||
|
December 31, 2016
|
|
Charges
|
|
Settlements
|
|
December 31, 2017
|
||||||||||||||||
Entertainment
|
|
$
|
17
|
|
|
|
|
$
|
44
|
|
|
|
|
$
|
(16
|
)
|
|
|
|
$
|
45
|
|
|
Cable Networks
|
|
4
|
|
|
|
|
—
|
|
|
|
|
(3
|
)
|
|
|
|
1
|
|
|
||||
Publishing
|
|
1
|
|
|
|
|
5
|
|
|
|
|
(3
|
)
|
|
|
|
3
|
|
|
||||
Local Media
|
|
6
|
|
|
|
|
12
|
|
|
|
|
(4
|
)
|
|
|
|
14
|
|
|
||||
Corporate
|
|
2
|
|
|
|
|
2
|
|
|
|
|
(1
|
)
|
|
|
|
3
|
|
|
||||
Total
|
|
$
|
30
|
|
|
|
|
$
|
63
|
|
|
|
|
$
|
(27
|
)
|
|
|
|
$
|
66
|
|
|
|
Three Months Ended
|
|
||||||
|
March 31,
|
|
||||||
|
2018
|
|
2017
|
Financial Statement Account
|
||||
Non-designated foreign exchange contracts
|
$
|
(4
|
)
|
|
$
|
(8
|
)
|
Other items, net
|
At March 31, 2018
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency hedges
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Total Assets
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation
|
$
|
—
|
|
|
$
|
354
|
|
|
$
|
—
|
|
|
$
|
354
|
|
Foreign currency hedges
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
365
|
|
|
$
|
—
|
|
|
$
|
365
|
|
At December 31, 2017
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency hedges
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Total Assets
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation
|
$
|
—
|
|
|
$
|
363
|
|
|
$
|
—
|
|
|
$
|
363
|
|
Foreign currency hedges
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
373
|
|
|
$
|
—
|
|
|
$
|
373
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Revenues:
|
|
|
|
|
|
||
Entertainment
|
$
|
2,716
|
|
|
$
|
2,347
|
|
Cable Networks
|
609
|
|
|
543
|
|
||
Publishing
|
160
|
|
|
161
|
|
||
Local Media
|
415
|
|
|
409
|
|
||
Corporate/Eliminations
|
(139
|
)
|
|
(117
|
)
|
||
Total Revenues
|
$
|
3,761
|
|
|
$
|
3,343
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Intercompany Revenues:
|
|
|
|
||||
Entertainment
|
$
|
139
|
|
|
$
|
119
|
|
Local Media
|
5
|
|
|
3
|
|
||
Total Intercompany Revenues
|
$
|
144
|
|
|
$
|
122
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Segment Operating Income (Loss):
|
|
|
|
||||
Entertainment
|
$
|
492
|
|
|
$
|
403
|
|
Cable Networks
|
230
|
|
|
250
|
|
||
Publishing
|
16
|
|
|
15
|
|
||
Local Media
|
118
|
|
|
124
|
|
||
Corporate
|
(75
|
)
|
|
(66
|
)
|
||
Merger and acquisition-related costs
|
(9
|
)
|
|
—
|
|
||
Operating income
|
772
|
|
|
726
|
|
||
Interest expense
|
(118
|
)
|
|
(109
|
)
|
||
Interest income
|
17
|
|
|
13
|
|
||
Other items, net
|
(11
|
)
|
|
(21
|
)
|
||
Earnings from continuing operations before income taxes
and equity in loss of investee companies
|
660
|
|
|
609
|
|
||
Provision for income taxes
|
(135
|
)
|
|
(138
|
)
|
||
Equity in loss of investee companies, net of tax
|
(14
|
)
|
|
(17
|
)
|
||
Net earnings from continuing operations
|
511
|
|
|
454
|
|
||
Net loss from discontinued operations, net of tax
|
—
|
|
|
(706
|
)
|
||
Net earnings (loss)
|
$
|
511
|
|
|
$
|
(252
|
)
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Depreciation and Amortization:
|
|
|
|
||||
Entertainment
|
$
|
30
|
|
|
$
|
29
|
|
Cable Networks
|
6
|
|
|
6
|
|
||
Publishing
|
1
|
|
|
1
|
|
||
Local Media
|
11
|
|
|
11
|
|
||
Corporate
|
8
|
|
|
8
|
|
||
Total Depreciation and Amortization
|
$
|
56
|
|
|
$
|
55
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Stock-based Compensation:
|
|
|
|
||||
Entertainment
|
$
|
15
|
|
|
$
|
15
|
|
Cable Networks
|
3
|
|
|
3
|
|
||
Publishing
|
1
|
|
|
1
|
|
||
Local Media
|
3
|
|
|
3
|
|
||
Corporate
|
22
|
|
|
18
|
|
||
Total Stock-based Compensation
|
$
|
44
|
|
|
$
|
40
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Capital Expenditures:
|
|
|
|
||||
Entertainment
|
$
|
17
|
|
|
$
|
14
|
|
Cable Networks
|
4
|
|
|
3
|
|
||
Publishing
|
1
|
|
|
1
|
|
||
Local Media
|
4
|
|
|
5
|
|
||
Corporate
|
4
|
|
|
4
|
|
||
Total Capital Expenditures
|
$
|
30
|
|
|
$
|
27
|
|
|
At
|
|
At
|
||||||||
|
March 31, 2018
|
|
December 31, 2017
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Entertainment
|
|
$
|
12,430
|
|
|
|
|
$
|
12,626
|
|
|
Cable Networks
|
|
2,920
|
|
|
|
|
2,878
|
|
|
||
Publishing
|
|
929
|
|
|
|
|
906
|
|
|
||
Local Media
|
|
4,010
|
|
|
|
|
4,042
|
|
|
||
Corporate/Eliminations
|
|
289
|
|
|
|
|
378
|
|
|
||
Discontinued operations
|
|
13
|
|
|
|
|
13
|
|
|
||
Total Assets
|
|
$
|
20,591
|
|
|
|
|
$
|
20,843
|
|
|
|
Three Months Ended March 31,
|
||||||
Revenues by Type
|
2018
|
|
2017
|
||||
Advertising
|
$
|
1,733
|
|
|
$
|
1,603
|
|
Content licensing and distribution:
|
|
|
|
||||
Programming
|
835
|
|
|
684
|
|
||
Publishing
|
160
|
|
|
161
|
|
||
Affiliate and subscription fees
|
979
|
|
|
842
|
|
||
Other
|
54
|
|
|
53
|
|
||
Total Revenues
|
$
|
3,761
|
|
|
$
|
3,343
|
|
•
|
Revenues from Distribution Arrangements
|
•
|
Revenues from the Renewal of Licensing Agreements
|
Revenues
|
$
|
112
|
|
Operating expenses
|
49
|
|
|
Operating income
|
63
|
|
|
Provision for income taxes
|
13
|
|
|
Net earnings from continuing operations
|
$
|
50
|
|
Diluted EPS from continuing operations
|
$
|
.13
|
|
Assets
|
|
||
Receivables, net
|
$
|
(97
|
)
|
Programming and other inventory (noncurrent)
|
$
|
(47
|
)
|
Other assets (noncurrent receivables)
|
$
|
458
|
|
|
|
||
Liabilities
|
|
||
Participants’ share and royalties payable (current)
|
$
|
10
|
|
Other current liabilities
|
$
|
(170
|
)
|
Deferred income tax liabilities, net
|
$
|
54
|
|
Participants’ share and royalties payable (noncurrent)
|
$
|
209
|
|
|
|
||
Accumulated deficit
|
$
|
211
|
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Three Months Ended March 31, 2018
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
43
|
|
|
$
|
3
|
|
|
$
|
3,715
|
|
|
$
|
—
|
|
|
$
|
3,761
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
25
|
|
|
1
|
|
|
2,374
|
|
|
—
|
|
|
2,400
|
|
|||||
Selling, general and administrative
|
13
|
|
|
64
|
|
|
447
|
|
|
—
|
|
|
524
|
|
|||||
Depreciation and amortization
|
1
|
|
|
6
|
|
|
49
|
|
|
—
|
|
|
56
|
|
|||||
Merger and acquisition-related costs
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Total costs and expenses
|
39
|
|
|
80
|
|
|
2,870
|
|
|
—
|
|
|
2,989
|
|
|||||
Operating income (loss)
|
4
|
|
|
(77
|
)
|
|
845
|
|
|
—
|
|
|
772
|
|
|||||
Interest (expense) income, net
|
(130
|
)
|
|
(122
|
)
|
|
151
|
|
|
—
|
|
|
(101
|
)
|
|||||
Other items, net
|
(7
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
(11
|
)
|
|||||
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies
|
(133
|
)
|
|
(201
|
)
|
|
994
|
|
|
—
|
|
|
660
|
|
|||||
Benefit (provision) for income taxes
|
27
|
|
|
41
|
|
|
(203
|
)
|
|
—
|
|
|
(135
|
)
|
|||||
Equity in earnings (loss) of investee companies, net of tax
|
617
|
|
|
412
|
|
|
(14
|
)
|
|
(1,029
|
)
|
|
(14
|
)
|
|||||
Net earnings
|
$
|
511
|
|
|
$
|
252
|
|
|
$
|
777
|
|
|
$
|
(1,029
|
)
|
|
$
|
511
|
|
Total comprehensive income
|
$
|
520
|
|
|
$
|
245
|
|
|
$
|
780
|
|
|
$
|
(1,025
|
)
|
|
$
|
520
|
|
|
Statement of Operations
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Three Months Ended March 31, 2017
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
42
|
|
|
$
|
3
|
|
|
$
|
3,298
|
|
|
$
|
—
|
|
|
$
|
3,343
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
24
|
|
|
1
|
|
|
2,049
|
|
|
—
|
|
|
2,074
|
|
|||||
Selling, general and administrative
|
10
|
|
|
61
|
|
|
417
|
|
|
—
|
|
|
488
|
|
|||||
Depreciation and amortization
|
1
|
|
|
6
|
|
|
48
|
|
|
—
|
|
|
55
|
|
|||||
Total costs and expenses
|
35
|
|
|
68
|
|
|
2,514
|
|
|
—
|
|
|
2,617
|
|
|||||
Operating income (loss)
|
7
|
|
|
(65
|
)
|
|
784
|
|
|
—
|
|
|
726
|
|
|||||
Interest (expense) income, net
|
(122
|
)
|
|
(117
|
)
|
|
143
|
|
|
—
|
|
|
(96
|
)
|
|||||
Other items, net
|
(10
|
)
|
|
(16
|
)
|
|
5
|
|
|
—
|
|
|
(21
|
)
|
|||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies
|
(125
|
)
|
|
(198
|
)
|
|
932
|
|
|
—
|
|
|
609
|
|
|||||
Benefit (provision) for income taxes
|
38
|
|
|
60
|
|
|
(236
|
)
|
|
—
|
|
|
(138
|
)
|
|||||
Equity in earnings (loss) of investee companies, net of tax
|
(165
|
)
|
|
354
|
|
|
(17
|
)
|
|
(189
|
)
|
|
(17
|
)
|
|||||
Net earnings (loss) from continuing operations
|
(252
|
)
|
|
216
|
|
|
679
|
|
|
(189
|
)
|
|
454
|
|
|||||
Net loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(706
|
)
|
|
—
|
|
|
(706
|
)
|
|||||
Net earnings (loss)
|
$
|
(252
|
)
|
|
$
|
216
|
|
|
$
|
(27
|
)
|
|
$
|
(189
|
)
|
|
$
|
(252
|
)
|
Total comprehensive income (loss)
|
$
|
(238
|
)
|
|
$
|
214
|
|
|
$
|
(21
|
)
|
|
$
|
(193
|
)
|
|
$
|
(238
|
)
|
|
Statement of Operations
|
|
Balance Sheet
|
||||||||||||||||||
|
At March 31, 2018
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
126
|
|
|
$
|
—
|
|
|
$
|
147
|
|
Receivables, net
|
23
|
|
|
2
|
|
|
3,795
|
|
|
—
|
|
|
3,820
|
|
|||||
Programming and other inventory
|
2
|
|
|
2
|
|
|
1,589
|
|
|
—
|
|
|
1,593
|
|
|||||
Prepaid expenses and other current assets
|
99
|
|
|
25
|
|
|
542
|
|
|
(35
|
)
|
|
631
|
|
|||||
Total current assets
|
145
|
|
|
29
|
|
|
6,052
|
|
|
(35
|
)
|
|
6,191
|
|
|||||
Property and equipment
|
43
|
|
|
217
|
|
|
2,776
|
|
|
—
|
|
|
3,036
|
|
|||||
Less accumulated depreciation and amortization
|
25
|
|
|
169
|
|
|
1,583
|
|
|
—
|
|
|
1,777
|
|
|||||
Net property and equipment
|
18
|
|
|
48
|
|
|
1,193
|
|
|
—
|
|
|
1,259
|
|
|||||
Programming and other inventory
|
3
|
|
|
6
|
|
|
3,243
|
|
|
—
|
|
|
3,252
|
|
|||||
Goodwill
|
98
|
|
|
62
|
|
|
4,731
|
|
|
—
|
|
|
4,891
|
|
|||||
Intangible assets
|
—
|
|
|
—
|
|
|
2,661
|
|
|
—
|
|
|
2,661
|
|
|||||
Investments in consolidated subsidiaries
|
45,858
|
|
|
15,635
|
|
|
—
|
|
|
(61,493
|
)
|
|
—
|
|
|||||
Other assets
|
161
|
|
|
5
|
|
|
2,171
|
|
|
—
|
|
|
2,337
|
|
|||||
Intercompany
|
—
|
|
|
974
|
|
|
30,150
|
|
|
(31,124
|
)
|
|
—
|
|
|||||
Total Assets
|
$
|
46,283
|
|
|
$
|
16,759
|
|
|
$
|
50,201
|
|
|
$
|
(92,652
|
)
|
|
$
|
20,591
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
223
|
|
|
$
|
—
|
|
|
$
|
230
|
|
Participants’ share and royalties payable
|
—
|
|
|
—
|
|
|
1,104
|
|
|
—
|
|
|
1,104
|
|
|||||
Program rights
|
3
|
|
|
2
|
|
|
626
|
|
|
—
|
|
|
631
|
|
|||||
Short-term debt
|
217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
217
|
|
|||||
Current portion of long-term debt
|
2
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
19
|
|
|||||
Accrued expenses and other current liabilities
|
310
|
|
|
212
|
|
|
1,381
|
|
|
(35
|
)
|
|
1,868
|
|
|||||
Total current liabilities
|
538
|
|
|
215
|
|
|
3,351
|
|
|
(35
|
)
|
|
4,069
|
|
|||||
Long-term debt
|
9,380
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
9,470
|
|
|||||
Other liabilities
|
3,258
|
|
|
232
|
|
|
1,579
|
|
|
—
|
|
|
5,069
|
|
|||||
Intercompany
|
31,124
|
|
|
—
|
|
|
—
|
|
|
(31,124
|
)
|
|
—
|
|
|||||
Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
—
|
|
|
—
|
|
|
126
|
|
|
(126
|
)
|
|
—
|
|
|||||
Common stock
|
1
|
|
|
123
|
|
|
590
|
|
|
(713
|
)
|
|
1
|
|
|||||
Additional paid-in capital
|
43,743
|
|
|
—
|
|
|
60,894
|
|
|
(60,894
|
)
|
|
43,743
|
|
|||||
Retained earnings (accumulated deficit)
|
(18,650
|
)
|
|
16,509
|
|
|
(11,708
|
)
|
|
(4,801
|
)
|
|
(18,650
|
)
|
|||||
Accumulated other comprehensive income (loss)
|
(653
|
)
|
|
11
|
|
|
79
|
|
|
(90
|
)
|
|
(653
|
)
|
|||||
|
24,441
|
|
|
16,643
|
|
|
49,981
|
|
|
(66,624
|
)
|
|
24,441
|
|
|||||
Less treasury stock, at cost
|
22,458
|
|
|
331
|
|
|
4,800
|
|
|
(5,131
|
)
|
|
22,458
|
|
|||||
Total Stockholders’ Equity
|
1,983
|
|
|
16,312
|
|
|
45,181
|
|
|
(61,493
|
)
|
|
1,983
|
|
|||||
Total Liabilities and Stockholders’ Equity
|
$
|
46,283
|
|
|
$
|
16,759
|
|
|
$
|
50,201
|
|
|
$
|
(92,652
|
)
|
|
$
|
20,591
|
|
|
Balance Sheet
|
||||||||||||||||||
|
At December 31, 2017
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
173
|
|
|
$
|
—
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
285
|
|
Receivables, net
|
29
|
|
|
2
|
|
|
3,666
|
|
|
—
|
|
|
3,697
|
|
|||||
Programming and other inventory
|
3
|
|
|
3
|
|
|
1,822
|
|
|
—
|
|
|
1,828
|
|
|||||
Prepaid expenses and other current assets
|
130
|
|
|
28
|
|
|
341
|
|
|
(36
|
)
|
|
463
|
|
|||||
Total current assets
|
335
|
|
|
33
|
|
|
5,941
|
|
|
(36
|
)
|
|
6,273
|
|
|||||
Property and equipment
|
49
|
|
|
217
|
|
|
2,785
|
|
|
—
|
|
|
3,051
|
|
|||||
Less accumulated depreciation and amortization
|
27
|
|
|
163
|
|
|
1,581
|
|
|
—
|
|
|
1,771
|
|
|||||
Net property and equipment
|
22
|
|
|
54
|
|
|
1,204
|
|
|
—
|
|
|
1,280
|
|
|||||
Programming and other inventory
|
3
|
|
|
4
|
|
|
2,874
|
|
|
—
|
|
|
2,881
|
|
|||||
Goodwill
|
98
|
|
|
62
|
|
|
4,731
|
|
|
—
|
|
|
4,891
|
|
|||||
Intangible assets
|
—
|
|
|
—
|
|
|
2,666
|
|
|
—
|
|
|
2,666
|
|
|||||
Investments in consolidated subsidiaries
|
45,504
|
|
|
15,225
|
|
|
—
|
|
|
(60,729
|
)
|
|
—
|
|
|||||
Other assets
|
162
|
|
|
5
|
|
|
2,685
|
|
|
—
|
|
|
2,852
|
|
|||||
Intercompany
|
—
|
|
|
1,221
|
|
|
29,562
|
|
|
(30,783
|
)
|
|
—
|
|
|||||
Total Assets
|
$
|
46,124
|
|
|
$
|
16,604
|
|
|
$
|
49,663
|
|
|
$
|
(91,548
|
)
|
|
$
|
20,843
|
|
Liabilities and Stockholders
’
Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
1
|
|
|
$
|
30
|
|
|
$
|
200
|
|
|
$
|
—
|
|
|
$
|
231
|
|
Participants’ share and royalties payable
|
—
|
|
|
—
|
|
|
986
|
|
|
—
|
|
|
986
|
|
|||||
Program rights
|
4
|
|
|
4
|
|
|
365
|
|
|
—
|
|
|
373
|
|
|||||
Short-term debt
|
679
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
679
|
|
|||||
Current portion of long-term debt
|
2
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
19
|
|
|||||
Accrued expenses and other current liabilities
|
352
|
|
|
269
|
|
|
1,099
|
|
|
(36
|
)
|
|
1,684
|
|
|||||
Total current liabilities
|
1,038
|
|
|
303
|
|
|
2,667
|
|
|
(36
|
)
|
|
3,972
|
|
|||||
Long-term debt
|
9,378
|
|
|
—
|
|
|
86
|
|
|
—
|
|
|
9,464
|
|
|||||
Other liabilities
|
2,947
|
|
|
234
|
|
|
2,248
|
|
|
—
|
|
|
5,429
|
|
|||||
Intercompany
|
30,783
|
|
|
—
|
|
|
—
|
|
|
(30,783
|
)
|
|
—
|
|
|||||
Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Preferred stock
|
—
|
|
|
—
|
|
|
126
|
|
|
(126
|
)
|
|
—
|
|
|||||
Common stock
|
1
|
|
|
123
|
|
|
590
|
|
|
(713
|
)
|
|
1
|
|
|||||
Additional paid-in capital
|
43,797
|
|
|
—
|
|
|
60,894
|
|
|
(60,894
|
)
|
|
43,797
|
|
|||||
Retained earnings (accumulated deficit)
|
(18,900
|
)
|
|
16,257
|
|
|
(12,224
|
)
|
|
(4,033
|
)
|
|
(18,900
|
)
|
|||||
Accumulated other comprehensive income (loss)
|
(662
|
)
|
|
18
|
|
|
76
|
|
|
(94
|
)
|
|
(662
|
)
|
|||||
|
24,236
|
|
|
16,398
|
|
|
49,462
|
|
|
(65,860
|
)
|
|
24,236
|
|
|||||
Less treasury stock, at cost
|
22,258
|
|
|
331
|
|
|
4,800
|
|
|
(5,131
|
)
|
|
22,258
|
|
|||||
Total Stockholders’ Equity
|
1,978
|
|
|
16,067
|
|
|
44,662
|
|
|
(60,729
|
)
|
|
1,978
|
|
|||||
Total Liabilities and Stockholders’ Equity
|
$
|
46,124
|
|
|
$
|
16,604
|
|
|
$
|
49,663
|
|
|
$
|
(91,548
|
)
|
|
$
|
20,843
|
|
|
Statement of Cash Flows
|
||||||||||||||||||
|
For the Three Months Ended March 31, 2018
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Net cash flow (used for) provided by operating activities
|
$
|
(193
|
)
|
|
$
|
(102
|
)
|
|
$
|
1,012
|
|
|
$
|
—
|
|
|
$
|
717
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments in and advances to investee companies
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
(40
|
)
|
|||||
Capital expenditures
|
—
|
|
|
(4
|
)
|
|
(26
|
)
|
|
—
|
|
|
(30
|
)
|
|||||
Other investing activities
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Net cash flow provided by (used for) investing activities from continuing operations
|
3
|
|
|
(4
|
)
|
|
(66
|
)
|
|
—
|
|
|
(67
|
)
|
|||||
Net cash flow used for investing activities from discontinued operations
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|||||
Net cash flow used for investing activities
|
(20
|
)
|
|
(4
|
)
|
|
(66
|
)
|
|
—
|
|
|
(90
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of short-term debt borrowings, net
|
(462
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(462
|
)
|
|||||
Payment of capital lease obligations
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Payment of contingent consideration
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Dividends
|
(71
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71
|
)
|
|||||
Purchase of Company common stock
|
(186
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(186
|
)
|
|||||
Payment of payroll taxes in lieu of issuing
shares for stock-based compensation
|
(52
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|||||
Proceeds from exercise of stock options
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Other financing activities
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Increase (decrease) in intercompany payables
|
817
|
|
|
107
|
|
|
(924
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash flow provided by (used for) financing activities
|
61
|
|
|
106
|
|
|
(932
|
)
|
|
—
|
|
|
(765
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(152
|
)
|
|
—
|
|
|
14
|
|
|
—
|
|
|
(138
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
173
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
285
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
126
|
|
|
$
|
—
|
|
|
$
|
147
|
|
|
Statement of Cash Flows
|
||||||||||||||||||
|
For the Three Months Ended March 31, 2017
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Net cash flow (used for) provided by operating activities
|
$
|
(256
|
)
|
|
$
|
(118
|
)
|
|
$
|
1,093
|
|
|
$
|
—
|
|
|
$
|
719
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investments in and advances to investee companies
|
—
|
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
(49
|
)
|
|||||
Capital expenditures
|
—
|
|
|
(4
|
)
|
|
(23
|
)
|
|
—
|
|
|
(27
|
)
|
|||||
Acquisitions
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|||||
Other investing activities
|
14
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
15
|
|
|||||
Net cash flow provided by (used for) investing activities from continuing operations
|
14
|
|
|
(4
|
)
|
|
(92
|
)
|
|
—
|
|
|
(82
|
)
|
|||||
Net cash flow used for investing activities from discontinued operations
|
—
|
|
|
(1
|
)
|
|
(6
|
)
|
|
—
|
|
|
(7
|
)
|
|||||
Net cash flow provided by (used for) investing activities
|
14
|
|
|
(5
|
)
|
|
(98
|
)
|
|
—
|
|
|
(89
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Repayments of short-term debt borrowings, net
|
(420
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(420
|
)
|
|||||
Repayment of debt borrowings of CBS Radio
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||||
Payment of capital lease obligations
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Payment of contingent consideration
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||||
Dividends
|
(77
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
|||||
Purchase of Company common stock
|
(531
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(531
|
)
|
|||||
Payment of payroll taxes in lieu of issuing
shares for stock-based compensation
|
(76
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|||||
Proceeds from exercise of stock options
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|||||
Increase (decrease) in intercompany payables
|
1,033
|
|
|
123
|
|
|
(1,156
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash flow (used for) provided by financing activities
|
(35
|
)
|
|
123
|
|
|
(1,170
|
)
|
|
—
|
|
|
(1,082
|
)
|
|||||
Net decrease in cash and cash equivalents
|
(277
|
)
|
|
—
|
|
|
(175
|
)
|
|
—
|
|
|
(452
|
)
|
|||||
Cash and cash equivalents at beginning of period
(includes $24 million of discontinued operations cash)
|
321
|
|
|
—
|
|
|
301
|
|
|
—
|
|
|
622
|
|
|||||
Cash and cash equivalents at end of period
(includes $7 million of discontinued operations cash)
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
126
|
|
|
$
|
—
|
|
|
$
|
170
|
|
Item 2.
|
Management’s Discussion and Analysis of Results of Operations and Financial Condition.
|
|
(Tabular dollars in millions, except per share amounts)
|
Consolidated results of operations
|
|
|
|
|
Increase/(Decrease)
|
|
|||||||||
Three Months Ended March 31,
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|||||||
GAAP:
|
|
|
|
|
|
|
|
|
|||||||
Revenues
|
$
|
3,761
|
|
|
$
|
3,343
|
|
|
$
|
418
|
|
|
13
|
%
|
|
Operating income
|
$
|
772
|
|
|
$
|
726
|
|
|
$
|
46
|
|
|
6
|
%
|
|
Net earnings from continuing operations
|
$
|
511
|
|
|
$
|
454
|
|
|
$
|
57
|
|
|
13
|
%
|
|
Net earnings (loss)
|
$
|
511
|
|
|
$
|
(252
|
)
|
|
$
|
763
|
|
|
n/m
|
|
|
Diluted EPS from continuing operations
|
$
|
1.32
|
|
|
$
|
1.09
|
|
|
$
|
.23
|
|
|
21
|
%
|
|
Diluted EPS
|
$
|
1.32
|
|
|
$
|
(.61
|
)
|
|
$
|
1.93
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-GAAP:
(a)
|
|
|
|
|
|
|
|
|
|||||||
Adjusted operating income
|
$
|
781
|
|
|
$
|
726
|
|
|
$
|
55
|
|
|
8
|
%
|
|
Adjusted net earnings from continuing operations
|
$
|
518
|
|
|
$
|
432
|
|
|
$
|
86
|
|
|
20
|
%
|
|
Adjusted net earnings
|
$
|
518
|
|
|
$
|
441
|
|
|
$
|
77
|
|
|
17
|
%
|
|
Adjusted diluted EPS from continuing operations
|
$
|
1.34
|
|
|
$
|
1.04
|
|
|
$
|
.30
|
|
|
29
|
%
|
|
Adjusted diluted EPS
|
$
|
1.34
|
|
|
$
|
1.06
|
|
|
$
|
.28
|
|
|
26
|
%
|
|
|
Three Months Ended March 31, 2018
|
|||||||||||||
|
Reported
|
|
Merger and acquisition-related costs
|
|
Adjusted
|
|
||||||||
Operating income
|
$
|
772
|
|
|
|
$
|
9
|
|
|
|
$
|
781
|
|
|
Interest expense
|
(118
|
)
|
|
|
—
|
|
|
|
(118
|
)
|
|
|||
Interest income
|
17
|
|
|
|
—
|
|
|
|
17
|
|
|
|||
Other items, net
|
(11
|
)
|
|
|
—
|
|
|
|
(11
|
)
|
|
|||
Earnings before income taxes
|
660
|
|
|
|
9
|
|
|
|
669
|
|
|
|||
Provision for income taxes
|
(135
|
)
|
|
|
(2
|
)
|
|
|
(137
|
)
|
|
|||
Equity in loss of investee companies, net of tax
|
(14
|
)
|
|
|
—
|
|
|
|
(14
|
)
|
|
|||
Net earnings
|
$
|
511
|
|
|
|
$
|
7
|
|
|
|
$
|
518
|
|
|
Diluted EPS
|
$
|
1.32
|
|
|
|
$
|
.02
|
|
|
|
$
|
1.34
|
|
|
|
Three Months Ended March 31, 2017
|
|||||||||||||||||||
|
Reported
|
|
Tax Items
(a)
|
|
Market Value Adjustment
(b)
|
|
Adjusted
|
|
||||||||||||
Earnings from continuing operations before income taxes
|
$
|
609
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
$
|
609
|
|
|
Provision for income taxes
|
(138
|
)
|
|
|
(22
|
)
|
|
|
|
—
|
|
|
|
(160
|
)
|
|
||||
Equity in loss of investee companies, net of tax
|
(17
|
)
|
|
|
—
|
|
|
|
|
—
|
|
|
|
(17
|
)
|
|
||||
Net earnings from continuing operations
|
454
|
|
|
|
(22
|
)
|
|
|
|
—
|
|
|
|
432
|
|
|
||||
Net earnings (loss) from discontinued operations, net of tax
|
(706
|
)
|
|
|
—
|
|
|
|
|
715
|
|
|
|
9
|
|
|
||||
Net earnings (loss)
|
$
|
(252
|
)
|
|
|
$
|
(22
|
)
|
|
|
|
$
|
715
|
|
|
|
$
|
441
|
|
|
Diluted EPS from continuing operations
|
$
|
1.09
|
|
|
|
$
|
(.05
|
)
|
|
|
|
$
|
—
|
|
|
|
$
|
1.04
|
|
|
Diluted EPS
|
$
|
(.61
|
)
|
|
|
$
|
(.05
|
)
|
|
|
|
$
|
1.72
|
|
|
|
$
|
1.06
|
|
|
|
Three Months Ended March 31,
|
|
|||||||||||||||||||
|
|
|
% of Total
Revenues
|
|
|
|
% of Total
Revenues
|
|
Increase/(Decrease)
|
|
|||||||||||
Revenues by Type
|
2018
|
|
|
2017
|
|
|
$
|
|
%
|
|
|||||||||||
Advertising
|
$
|
1,733
|
|
|
46
|
%
|
|
$
|
1,603
|
|
|
48
|
%
|
|
$
|
130
|
|
|
8
|
%
|
|
Content licensing and distribution
|
995
|
|
|
27
|
|
|
845
|
|
|
25
|
|
|
150
|
|
|
18
|
|
|
|||
Affiliate and subscription fees
|
979
|
|
|
26
|
|
|
842
|
|
|
25
|
|
|
137
|
|
|
16
|
|
|
|||
Other
|
54
|
|
|
1
|
|
|
53
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
|||
Total Revenues
|
$
|
3,761
|
|
|
100
|
%
|
|
$
|
3,343
|
|
|
100
|
%
|
|
$
|
418
|
|
|
13
|
%
|
|
|
Three Months Ended March 31,
|
|
|||||||||||||||||||
|
|
|
% of Operating Expenses
|
|
|
|
% of Operating Expenses
|
|
Increase/(Decrease)
|
|
|||||||||||
Operating Expenses by Type
|
2018
|
|
|
2017
|
|
|
$
|
|
%
|
|
|||||||||||
Programming
|
$
|
968
|
|
|
40
|
%
|
|
$
|
857
|
|
|
41
|
%
|
|
$
|
111
|
|
|
13
|
%
|
|
Production
|
759
|
|
|
32
|
|
|
657
|
|
|
32
|
|
|
102
|
|
|
16
|
|
|
|||
Participation, distribution and royalty
|
322
|
|
|
13
|
|
|
236
|
|
|
11
|
|
|
86
|
|
|
36
|
|
|
|||
Other
|
351
|
|
|
15
|
|
|
324
|
|
|
16
|
|
|
27
|
|
|
8
|
|
|
|||
Total Operating Expenses
|
$
|
2,400
|
|
|
100
|
%
|
|
$
|
2,074
|
|
|
100
|
%
|
|
$
|
326
|
|
|
16
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
2018
|
|
% of Revenues
|
|
2017
|
|
% of Revenues
|
|
Increase/(Decrease)
|
|
|||||||||||||
Selling, general and administrative expenses
|
$
|
524
|
|
|
|
14
|
%
|
|
|
$
|
488
|
|
|
|
15
|
%
|
|
|
|
7
|
%
|
|
|
|
Three Months Ended March 31,
|
|||||||||||
|
2018
|
|
2017
|
|
Increase/(Decrease)
|
|||||||
Depreciation and amortization
|
$
|
56
|
|
|
$
|
55
|
|
|
|
2
|
%
|
|
|
Three Months Ended March 31,
|
|||||||||||
|
2018
|
|
2017
|
|
Increase/(Decrease)
|
|||||||
Interest expense
|
$
|
(118
|
)
|
|
$
|
(109
|
)
|
|
|
8
|
%
|
|
Interest income
|
$
|
17
|
|
|
$
|
13
|
|
|
|
31
|
%
|
|
|
At March 31,
|
|||||||||||||||||
|
|
|
Weighted Average
|
|
|
|
Weighted Average
|
|
||||||||||
|
2018
|
|
Interest Rate
|
|
2017
|
|
Interest Rate
|
|
||||||||||
Senior debt
|
$
|
9,428
|
|
|
|
4.26
|
%
|
|
|
$
|
8,851
|
|
|
|
4.47
|
%
|
|
|
Commercial paper
|
$
|
197
|
|
|
|
2.34
|
%
|
|
|
$
|
30
|
|
|
|
1.20
|
%
|
|
|
Short-term bank borrowings
|
$
|
20
|
|
|
|
2.31
|
%
|
|
|
$
|
—
|
|
|
|
n/a
|
|
|
|
|
Three Months Ended March 31,
|
|||||||||||
|
2018
|
|
2017
|
|
Increase/(Decrease)
|
|||||||
Pension and postretirement benefit costs
|
$
|
(15
|
)
|
|
$
|
(22
|
)
|
|
|
(32
|
)%
|
|
Foreign exchange gains
|
4
|
|
|
1
|
|
|
|
n/m
|
|
|
||
Other items, net
|
$
|
(11
|
)
|
|
$
|
(21
|
)
|
|
|
(48
|
)%
|
|
|
Three Months Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
Increase/(Decrease)
|
||||||
Provision for income taxes, including interest and before
other discrete items
(a)
|
$
|
(138
|
)
|
|
$
|
(185
|
)
|
|
(25
|
)%
|
|
Excess tax benefits from stock-based compensation
(b)
|
—
|
|
|
27
|
|
|
|
|
|||
Other discrete items
(c)
|
3
|
|
|
20
|
|
|
|
|
|||
Provision for income taxes
|
$
|
(135
|
)
|
|
$
|
(138
|
)
|
|
(2
|
)%
|
|
Effective income tax rate
|
20.5
|
%
|
|
22.7
|
%
|
|
|
|
|
Three Months Ended March 31,
|
|||||||||||
|
2018
|
|
2017
|
|
Increase/(Decrease)
|
|||||||
Equity in loss of investee companies, net of tax
|
$
|
(14
|
)
|
|
$
|
(17
|
)
|
|
|
(18
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||
|
2018
|
|
2017
|
|
Increase/(Decrease)
|
|||||||
Net earnings from continuing operations
|
$
|
511
|
|
|
$
|
454
|
|
|
|
13
|
%
|
|
Diluted EPS from continuing operations
|
$
|
1.32
|
|
|
$
|
1.09
|
|
|
|
21
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
Increase/(Decrease)
|
||||||
Net earnings (loss)
|
$
|
511
|
|
|
$
|
(252
|
)
|
|
|
n/m
|
|
Diluted EPS
|
$
|
1.32
|
|
|
$
|
(.61
|
)
|
|
|
n/m
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||
|
|
% of Total
Revenues
|
|
|
% of Total
Revenues
|
Increase/(Decrease)
|
|
|||||||||||||||
|
2018
|
|
2017
|
$
|
|
%
|
|
|||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Entertainment
|
$
|
2,716
|
|
|
72
|
%
|
|
|
$
|
2,347
|
|
|
70
|
%
|
|
$
|
369
|
|
|
16
|
%
|
|
Cable Networks
|
609
|
|
|
16
|
|
|
|
543
|
|
|
16
|
|
|
66
|
|
|
12
|
|
|
|||
Publishing
|
160
|
|
|
4
|
|
|
|
161
|
|
|
5
|
|
|
(1
|
)
|
|
(1
|
)
|
|
|||
Local Media
|
415
|
|
|
11
|
|
|
|
409
|
|
|
12
|
|
|
6
|
|
|
1
|
|
|
|||
Corporate/Eliminations
|
(139
|
)
|
|
(3
|
)
|
|
|
(117
|
)
|
|
(3
|
)
|
|
(22
|
)
|
|
(19
|
)
|
|
|||
Total Revenues
|
$
|
3,761
|
|
|
100
|
%
|
|
|
$
|
3,343
|
|
|
100
|
%
|
|
$
|
418
|
|
|
13
|
%
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||
|
|
% of Total
Segment
Operating
Income
|
|
|
% of Total
Segment
Operating
Income
|
|
|
|||||||||||||||
|
|
|
|
Increase/(Decrease)
|
|
|||||||||||||||||
|
2018
|
|
2017
|
$
|
|
%
|
|
|||||||||||||||
Segment Operating Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Entertainment
|
$
|
492
|
|
|
63
|
%
|
|
|
$
|
403
|
|
|
56
|
%
|
|
$
|
89
|
|
|
22
|
%
|
|
Cable Networks
|
230
|
|
|
30
|
|
|
|
250
|
|
|
34
|
|
|
(20
|
)
|
|
(8
|
)
|
|
|||
Publishing
|
16
|
|
|
2
|
|
|
|
15
|
|
|
2
|
|
|
1
|
|
|
7
|
|
|
|||
Local Media
|
118
|
|
|
15
|
|
|
|
124
|
|
|
17
|
|
|
(6
|
)
|
|
(5
|
)
|
|
|||
Corporate
|
(75
|
)
|
|
(10
|
)
|
|
|
(66
|
)
|
|
(9
|
)
|
|
(9
|
)
|
|
(14
|
)
|
|
|||
Total Segment Operating Income
|
781
|
|
|
100
|
%
|
|
|
726
|
|
|
100
|
%
|
|
55
|
|
|
8
|
|
|
|||
Merger and acquisition-related costs
|
(9
|
)
|
|
|
|
|
—
|
|
|
|
|
(9
|
)
|
|
n/m
|
|
|
|||||
Total Operating Income
|
$
|
772
|
|
|
|
|
|
|
$
|
726
|
|
|
|
|
|
$
|
46
|
|
|
6
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|||||||
Depreciation and Amortization:
|
|
|
|
|
|
|
|
|
|||||||
Entertainment
|
$
|
30
|
|
|
$
|
29
|
|
|
$
|
1
|
|
|
3
|
%
|
|
Cable Networks
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
|||
Publishing
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
|||
Local Media
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
|||
Corporate
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
|||
Total Depreciation and Amortization
|
$
|
56
|
|
|
$
|
55
|
|
|
$
|
1
|
|
|
2
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
Entertainment
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
2,716
|
|
|
$
|
2,347
|
|
|
$
|
369
|
|
|
16
|
%
|
|
Segment Operating Income
|
$
|
492
|
|
|
$
|
403
|
|
|
$
|
89
|
|
|
22
|
%
|
|
Segment Operating Income as a % of revenues
|
18
|
%
|
|
17
|
%
|
|
|
|
|
|
|||||
Depreciation and amortization
|
$
|
30
|
|
|
$
|
29
|
|
|
$
|
1
|
|
|
3
|
%
|
|
Capital expenditures
|
$
|
17
|
|
|
$
|
14
|
|
|
$
|
3
|
|
|
21
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
Cable Networks
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
609
|
|
|
$
|
543
|
|
|
$
|
66
|
|
|
12
|
%
|
|
Segment Operating Income
|
$
|
230
|
|
|
$
|
250
|
|
|
$
|
(20
|
)
|
|
(8
|
)%
|
|
Segment Operating Income as a % of revenues
|
38
|
%
|
|
46
|
%
|
|
|
|
|
|
|||||
Depreciation and amortization
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Capital expenditures
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
33
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
Publishing
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
160
|
|
|
$
|
161
|
|
|
$
|
(1
|
)
|
|
(1
|
)%
|
|
Segment Operating Income
|
$
|
16
|
|
|
$
|
15
|
|
|
$
|
1
|
|
|
7
|
%
|
|
Segment Operating Income as a % of revenues
|
10
|
%
|
|
9
|
%
|
|
|
|
|
|
|||||
Depreciation and amortization
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Capital expenditures
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
Local Media
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
415
|
|
|
$
|
409
|
|
|
$
|
6
|
|
|
1
|
%
|
|
Segment Operating Income
|
$
|
118
|
|
|
$
|
124
|
|
|
$
|
(6
|
)
|
|
(5
|
)%
|
|
Segment Operating Income as a % of revenues
|
28
|
%
|
|
30
|
%
|
|
|
|
|
|
|||||
Depreciation and amortization
|
$
|
11
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Capital expenditures
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
(1
|
)
|
|
(20
|
)%
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
Corporate
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|||||||
Segment Operating Loss
|
$
|
(75
|
)
|
|
$
|
(66
|
)
|
|
$
|
(9
|
)
|
|
(14
|
)%
|
|
Depreciation and amortization
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Capital expenditures
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
At
|
|
At
|
|
Increase/(Decrease)
|
|
|||||||||||||
|
March 31, 2018
|
|
December 31, 2017
|
|
$
|
|
%
|
|
|||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
|
$
|
147
|
|
|
|
|
$
|
285
|
|
|
|
$
|
(138
|
)
|
|
(48
|
)%
|
|
Receivables, net
(a)
|
|
3,820
|
|
|
|
|
3,697
|
|
|
|
123
|
|
|
3
|
|
|
|||
Programming and other inventory
(b)
|
|
1,593
|
|
|
|
|
1,828
|
|
|
|
(235
|
)
|
|
(13
|
)
|
|
|||
Prepaid expenses
|
|
164
|
|
|
|
|
194
|
|
|
|
(30
|
)
|
|
(15
|
)
|
|
|||
All other current assets
(c)
|
|
467
|
|
|
|
|
269
|
|
|
|
198
|
|
|
74
|
|
|
|||
Total current assets
|
|
$
|
6,191
|
|
|
|
|
$
|
6,273
|
|
|
|
$
|
(82
|
)
|
|
(1
|
)%
|
|
|
At
|
|
At
|
|
Increase/(Decrease)
|
|
|||||||||||||
|
March 31, 2018
|
|
December 31, 2017
|
|
$
|
|
%
|
|
|||||||||||
Other assets
(a)
|
|
$
|
2,337
|
|
|
|
|
$
|
2,852
|
|
|
|
$
|
(515
|
)
|
|
(18
|
)%
|
|
|
At
|
|
At
|
|
Increase/(Decrease)
|
|
|||||||||||||
|
March 31, 2018
|
|
December 31, 2017
|
|
$
|
|
%
|
|
|||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Accounts payable
|
|
$
|
230
|
|
|
|
|
$
|
231
|
|
|
|
$
|
(1
|
)
|
|
—
|
%
|
|
Accrued compensation
(a)
|
|
198
|
|
|
|
|
343
|
|
|
|
(145
|
)
|
|
(42
|
)
|
|
|||
Participants’ share and royalties
payable
(a)
|
|
1,104
|
|
|
|
|
986
|
|
|
|
118
|
|
|
12
|
|
|
|||
Program rights
(b)
|
|
631
|
|
|
|
|
373
|
|
|
|
258
|
|
|
69
|
|
|
|||
Short-term debt
(c)
|
|
217
|
|
|
|
|
679
|
|
|
|
(462
|
)
|
|
(68
|
)
|
|
|||
All other current liabilities
(d)
|
|
1,689
|
|
|
|
|
1,360
|
|
|
|
329
|
|
|
24
|
|
|
|||
Total current liabilities
|
|
$
|
4,069
|
|
|
|
|
$
|
3,972
|
|
|
|
$
|
97
|
|
|
2
|
%
|
|
|
At
|
|
At
|
|
Increase/(Decrease)
|
|
|||||||||||||
|
March 31, 2018
|
|
December 31, 2017
|
|
$
|
|
%
|
|
|||||||||||
Other liabilities
(a)
|
|
$
|
3,267
|
|
|
|
|
$
|
3,621
|
|
|
|
$
|
(354
|
)
|
|
(10
|
)%
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
Increase/(Decrease)
|
||||||||
Net cash flow provided by operating activities from:
|
|
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
717
|
|
|
$
|
678
|
|
|
|
$
|
39
|
|
|
Discontinued operations
|
—
|
|
|
41
|
|
|
|
(41
|
)
|
|
|||
Net cash flow provided by operating activities
|
717
|
|
|
719
|
|
|
|
(2
|
)
|
|
|||
Net cash flow used for investing activities from:
|
|
|
|
|
|
|
|
||||||
Continuing operations
|
(67
|
)
|
|
(82
|
)
|
|
|
15
|
|
|
|||
Discontinued operations
|
(23
|
)
|
|
(7
|
)
|
|
|
(16
|
)
|
|
|||
Net cash flow used for investing activities
|
(90
|
)
|
|
(89
|
)
|
|
|
(1
|
)
|
|
|||
Net cash flow used for financing activities
|
(765
|
)
|
|
(1,082
|
)
|
|
|
317
|
|
|
|||
Net decrease in cash and cash equivalents
|
$
|
(138
|
)
|
|
$
|
(452
|
)
|
|
|
$
|
314
|
|
|
|
Three Months Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
||||||||
Investments in and advances to investee companies
(a)
|
|
$
|
(40
|
)
|
|
|
|
$
|
(49
|
)
|
|
Capital expenditures
|
|
(30
|
)
|
|
|
|
(27
|
)
|
|
||
Acquisitions
|
|
—
|
|
|
|
|
(21
|
)
|
|
||
All other investing activities, net
|
|
3
|
|
|
|
|
15
|
|
|
||
Net cash flow used for investing activities from continuing operations
|
|
(67
|
)
|
|
|
|
(82
|
)
|
|
||
Net cash flow used for investing activities from discontinued operations
|
|
(23
|
)
|
|
|
|
(7
|
)
|
|
||
Net cash flow used for investing activities
|
|
$
|
(90
|
)
|
|
|
|
$
|
(89
|
)
|
|
|
Three Months Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
||||||||
Repayments of short-term debt borrowings, net
|
|
$
|
(462
|
)
|
|
|
|
$
|
(420
|
)
|
|
Repurchase of CBS Corp. Class B Common Stock
|
|
(186
|
)
|
|
|
|
(531
|
)
|
|
||
Dividends
|
|
(71
|
)
|
|
|
|
(77
|
)
|
|
||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation
|
|
(52
|
)
|
|
|
|
(76
|
)
|
|
||
Proceeds from exercise of stock options
|
|
16
|
|
|
|
|
36
|
|
|
||
All other financing activities, net
|
|
(10
|
)
|
|
|
|
(14
|
)
|
|
||
Net cash flow used for financing activities
|
|
$
|
(765
|
)
|
|
|
|
$
|
(1,082
|
)
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Net cash flow provided by operating activities
|
$
|
717
|
|
|
$
|
719
|
|
Capital expenditures
|
(30
|
)
|
|
(27
|
)
|
||
Less:
|
|
|
|
||||
Discretionary pension plan contributions
|
—
|
|
|
(100
|
)
|
||
Operating cash flow from discontinued operations
|
—
|
|
|
41
|
|
||
Free cash flow
|
$
|
687
|
|
|
$
|
751
|
|
|
At
|
|
At
|
||||||||
|
March 31, 2018
|
|
December 31, 2017
|
||||||||
Commercial paper
|
|
$
|
197
|
|
|
|
|
$
|
679
|
|
|
Short-term bank borrowings
|
|
20
|
|
|
|
|
—
|
|
|
||
Senior debt (2.30% – 7.875% due 2019 – 2045)
(a)
|
|
9,428
|
|
|
|
|
9,426
|
|
|
||
Obligations under capital leases
|
|
61
|
|
|
|
|
57
|
|
|
||
Total debt
|
|
9,706
|
|
|
|
|
10,162
|
|
|
||
Less short-term debt
|
|
217
|
|
|
|
|
679
|
|
|
||
Less current portion of long-term debt
|
|
19
|
|
|
|
|
19
|
|
|
||
Total long-term debt, net of current portion
|
|
$
|
9,470
|
|
|
|
|
$
|
9,464
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
(in millions, except per share amounts)
|
Total
Number of
Shares
Purchased
|
|
Average
Price Per
Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Programs
|
|
Remaining
Authorization
|
||||||||||||
January 1, 2018 - January 31, 2018
|
|
—
|
|
|
|
$
|
—
|
|
|
|
—
|
|
|
|
|
$
|
3,057
|
|
|
February 1, 2018 - February 28, 2018
|
|
1.0
|
|
|
|
$
|
55.22
|
|
|
|
1.0
|
|
|
|
|
$
|
3,002
|
|
|
March 1, 2018 - March 31, 2018
|
|
2.8
|
|
|
|
$
|
51.76
|
|
|
|
2.8
|
|
|
|
|
$
|
2,857
|
|
|
Total
|
|
3.8
|
|
|
|
$
|
52.67
|
|
|
|
3.8
|
|
|
|
|
$
|
2,857
|
|
|
Item 6.
|
Exhibits.
|
Exhibit No.
|
Description of Document
|
||
(4
|
)
|
|
Instruments defining the rights of security holders, including indentures
|
|
(a)
|
Amended and Restated Senior Indenture dated as of November 3, 2008 (“2008 Indenture”) between CBS Corporation, CBS Operations Inc., and The Bank of New York Mellon, as senior trustee (incorporated by reference to
Exhibit 4.1
to the Registration Statement on Form S-3 of CBS Corporation filed November 3, 2008 (Registration No. 333-154962) (File No. 001-09553)).
|
|
|
(b)
|
First Supplemental Indenture to 2008 Indenture dated as of April 5, 2010 between CBS Corporation, CBS Operations Inc., and Deutsche Bank Trust Company Americas, as senior trustee (incorporated by reference to
Exhibit 4.3
to the Current Report on Form 8-K of CBS Corporation filed April 5, 2010 (File No. 001-09553)).
|
|
|
|
The other instruments defining the rights of holders of the long-term debt securities of CBS Corporation and its subsidiaries are omitted pursuant to section (b)(4)(iii)(A) of Item 601 of Regulation S-K. CBS Corporation hereby agrees to furnish copies of these instruments to the Securities and Exchange Commission upon request.
|
|
(10
|
)
|
|
Material Contracts
|
|
(a)
|
Letter Agreement dated April 25, 2018 amending the Employment Agreement dated as of June 1, 2017 between CBS Corporation and Lawrence P. Tu (
filed herewith
).
|
|
(12
|
)
|
|
Statement Regarding Computation of Ratios
(
filed herewith
)
|
(31
|
)
|
|
Rule 13a-14(a)/15d-14(a) Certifications
|
|
(a)
|
Certification of the Chief Executive Officer of CBS Corporation pursuant to Rule 13a-14(a), or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (
filed herewith
).
|
|
|
(b)
|
Certification of the Chief Operating Officer of CBS Corporation pursuant to Rule 13a-14(a), or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (
filed herewith
).
|
|
(32
|
)
|
|
Section 1350 Certifications
|
|
(a)
|
Certification of the Chief Executive Officer of CBS Corporation furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (
furnished herewith
).
|
|
|
(b)
|
Certification of the Chief Operating Officer of CBS Corporation furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (
furnished herewith
).
|
|
(101
|
)
|
|
Interactive Data File
|
|
|
101. INS XBRL Instance Document.
|
|
|
|
101. SCH XBRL Taxonomy Extension Schema.
|
|
|
|
101. CAL XBRL Taxonomy Extension Calculation Linkbase.
|
|
|
|
101. DEF XBRL Taxonomy Extension Definition Linkbase.
|
|
|
|
101. LAB XBRL Taxonomy Extension Label Linkbase.
|
|
|
|
101. PRE XBRL Taxonomy Extension Presentation Linkbase.
|
|
CBS CORPORATION
(Registrant)
|
|
|
Date: May 4, 2018
|
/s/ Joseph R. Ianniello
|
|
Joseph R. Ianniello
Chief Operating Officer
|
|
|
Date: May 4, 2018
|
/s/ Lawrence Liding
|
|
Lawrence Liding
Executive Vice President, Controller and
Chief Accounting Officer
|
Dear Larry:
|
April 25, 2018
|
|
|
|
Very truly yours,
|
||
|
|
|
CBS CORPORATION
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Anthony Ambrosio
|
|
|
|
|
|
Anthony G. Ambrosio
|
|
ACCEPTED AND AGREED:
|
|
|
Senior Executive Vice President,
|
||
|
|
|
|
Chief Administrative Officer &
|
|
|
|
|
|
Chief Human Resources Officer
|
|
/s/ Lawrence P. Tu
|
|
|
|
|
|
Lawrence P. Tu
|
|
|
|
|
|
|
|
|
|
|
|
Dated:
|
4/25/18
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||||
|
March 31,
|
|
December 31,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
2017
|
2016
|
2015
|
2014
|
2013
|
||||||||||||||
Earnings from continuing operations before
income taxes and equity in loss of investee
companies
|
$
|
660
|
|
|
$
|
609
|
|
|
$
|
1,979
|
|
$
|
2,230
|
|
$
|
2,264
|
|
$
|
1,858
|
|
$
|
2,303
|
|
Add:
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Distributions from investee companies
|
—
|
|
|
—
|
|
|
1
|
|
3
|
|
3
|
|
9
|
|
8
|
|
|||||||
Interest expense, net of capitalized interest
|
118
|
|
|
109
|
|
|
457
|
|
411
|
|
392
|
|
363
|
|
375
|
|
|||||||
1/3 of rental expense
|
16
|
|
|
14
|
|
|
60
|
|
56
|
|
58
|
|
57
|
|
55
|
|
|||||||
Total earnings from continuing operations
|
$
|
794
|
|
|
$
|
732
|
|
|
$
|
2,497
|
|
$
|
2,700
|
|
$
|
2,717
|
|
$
|
2,287
|
|
$
|
2,741
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest expense, net of capitalized interest
|
$
|
118
|
|
|
$
|
109
|
|
|
$
|
457
|
|
$
|
411
|
|
$
|
392
|
|
$
|
363
|
|
$
|
375
|
|
1/3 of rental expense
|
16
|
|
|
14
|
|
|
60
|
|
56
|
|
58
|
|
57
|
|
55
|
|
|||||||
Total fixed charges
|
$
|
134
|
|
|
$
|
123
|
|
|
$
|
517
|
|
$
|
467
|
|
$
|
450
|
|
$
|
420
|
|
$
|
430
|
|
Ratio of earnings to fixed charges
|
5.9
|
x
|
|
6.0
|
x
|
|
4.8
|
x
|
5.8
|
x
|
6.0
|
x
|
5.4
|
x
|
6.4
|
x
|
1.
|
I have reviewed this quarterly report on Form 10-Q of CBS Corporation;
|
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 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/ Leslie Moonves
|
|
Leslie Moonves
|
|
Chairman of the Board, President and Chief Executive Officer
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of CBS Corporation;
|
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 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/ Joseph R. Ianniello
|
|
Joseph R. Ianniello
|
|
Chief Operating Officer
|
/s/ Leslie Moonves
|
|
Leslie Moonves
|
|
May 4, 2018
|
|
/s/ Joseph R. Ianniello
|
|
Joseph R. Ianniello
|
|
May 4, 2018
|
|