Condensed Consolidating Financial Statements

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Financial Statements

14) CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

CBS Operations Inc. is a wholly owned subsidiary of the Company. CBS Operations Inc. has fully and unconditionally guaranteed CBS Corp.’s senior debt securities. The following condensed consolidating financial statements present the results of operations, financial position and cash flows of CBS Corp., CBS Operations Inc., the direct and indirect Non-Guarantor Affiliates of CBS Corp. and CBS Operations Inc., and the eliminations necessary to arrive at the information for the Company on a consolidated basis. Changes to the entities that comprise the guarantor group are reflected for the prior periods presented.

	Statement of Operations
	For the Three Months Ended June 30, 2019
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Revenues	$	43		$	2		$	3,764		$	—		$	3,809
Costs and expenses:
Operating	24			1			2,484			—			2,509
Selling, general and administrative	12			68			465			—			545
Depreciation and amortization	1			5			47			—			53
Restructuring and other corporate matters	—			7			—			—			7
Total costs and expenses	37			81			2,996			—			3,114
Operating income (loss)	6			(79		)	768			—			695
Interest (expense) income, net	(138		)	(137		)	172			—			(103		)
Other items, net	(10		)	(9		)	(2		)	—			(21		)
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies	(142		)	(225		)	938			—			571
Benefit (provision) for income taxes	32			50			(201		)	—			(119		)
Equity in earnings (loss) of investee companies, net of tax	550			402			(12		)	(952		)	(12		)
Net earnings	$	440		$	227		$	725		$	(952	)	$	440
Total comprehensive income	$	452		$	232		$	720		$	(952	)	$	452

	Statement of Operations
	For the Six Months Ended June 30, 2019
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Revenues	$	89		$	5		$	7,882		$	—		$	7,976
Costs and expenses:
Operating	50			2			5,205			—			5,257
Selling, general and administrative	26			125			967			—			1,118
Depreciation and amortization	2			10			94			—			106
Restructuring and other corporate matters	3			30			88			—			121
Gain on sale of assets	—			—			(549		)	—			(549		)
Total costs and expenses	81			167			5,805			—			6,053
Operating income (loss)	8			(162		)	2,077			—			1,923
Interest (expense) income, net	(275		)	(268		)	337			—			(206		)
Other items, net	(18		)	(20		)	(4		)	—			(42		)
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies	(285		)	(450		)	2,410			—			1,675
Benefit from income taxes	61			96			220			—			377
Equity in earnings (loss) of investee companies, net of tax	2,247			344			(29		)	(2,591		)	(29		)
Net earnings (loss)	$	2,023		$	(10	)	$	2,601		$	(2,591	)	$	2,023
Total comprehensive income (loss)	$	2,052		$	(7	)	$	2,592		$	(2,585	)	$	2,052

	Statement of Operations
	For the Three Months Ended June 30, 2018
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Revenues	$	44		$	2		$	3,420		$	—		$	3,466
Costs and expenses:
Operating	23			1			2,160			—			2,184
Selling, general and administrative	12			68			452			—			532
Depreciation and amortization	1			5			50			—			56
Restructuring and other corporate matters	—			16			19			—			35
Total costs and expenses	36			90			2,681			—			2,807
Operating income (loss)	8			(88		)	739			—			659
Interest (expense) income, net	(133		)	(126		)	157			—			(102		)
Other items, net	(9		)	14			(29		)	—			(24		)
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies	(134		)	(200		)	867			—			533
Benefit (provision) for income taxes	28			42			(183		)	—			(113		)
Equity in earnings (loss) of investee companies, net of tax	506			351			(20		)	(857		)	(20		)
Net earnings	$	400		$	193		$	664		$	(857	)	$	400
Total comprehensive income	$	407		$	202		$	644		$	(846	)	$	407

	Statement of Operations
	For the Six Months Ended June 30, 2018
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Revenues	$	87		$	5		$	7,135		$	—		$	7,227
Costs and expenses:
Operating	48			2			4,534			—			4,584
Selling, general and administrative	25			132			899			—			1,056
Depreciation and amortization	2			11			99			—			112
Restructuring and other corporate matters	—			25			19			—			44
Total costs and expenses	75			170			5,551			—			5,796
Operating income (loss)	12			(165		)	1,584			—			1,431
Interest (expense) income, net	(263		)	(248		)	308			—			(203		)
Other items, net	(16		)	12			(31		)	—			(35		)
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies	(267		)	(401		)	1,861			—			1,193
Benefit (provision) for income taxes	55			83			(386		)	—			(248		)
Equity in earnings (loss) of investee companies, net of tax	1,123			764			(34		)	(1,887		)	(34		)
Net earnings	$	911		$	446		$	1,441		$	(1,887	)	$	911
Total comprehensive income	$	927		$	448		$	1,424		$	(1,872	)	$	927

	Balance Sheet
	At June 30, 2019
	CBS Corp.			CBS Operations Inc.		Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Assets
Cash and cash equivalents	$	11		$	—	$	205		$	—		$	216
Receivables, net	21			1		3,773			—			3,795
Programming and other inventory	2			2		1,941			—			1,945
Prepaid expenses and other current assets	6			40		367			(33		)	380
Total current assets	40			43		6,286			(33		)	6,336
Property and equipment	30			227		2,674			—			2,931
Less accumulated depreciation and amortization	14			194		1,546			—			1,754
Net property and equipment	16			33		1,128			—			1,177
Programming and other inventory	4			3		4,262			—			4,269
Goodwill	98			62		4,902			—			5,062
Intangible assets	—			—		2,660			—			2,660
Operating lease assets	5			110		807			—			922
Investments in consolidated subsidiaries	50,017			17,246		—			(67,263		)	—
Deferred income tax assets, net	—			—		785			—			785
Other assets	292			—		2,332			—			2,624
Intercompany	—			104		33,255			(33,359		)	—
Total Assets	$	50,472		$	17,601	$	56,417		$	(100,655	)	$	23,835
Liabilities and Stockholders’ Equity
Accounts payable	$	4		$	9	$	201		$	—		$	214
Participants’ share and royalties payable	—			—		1,188			—			1,188
Accrued programming and production costs	3			2		585			—			590
Accrued expenses and other current liabilities	451			254		1,179			(33		)	1,851
Total current liabilities	458			265		3,153			(33		)	3,843
Long-term debt	9,287			—		72			—			9,359
Noncurrent operating lease liabilities	5			104		749			—			858
Other liabilities	2,610			211		2,201			—			5,022
Intercompany	33,359			—		—			(33,359		)	—
Stockholders’ Equity:
Preferred stock	—			—		126			(126		)	—
Common stock	1			123		590			(713		)	1
Additional paid-in capital	43,534			—		60,894			(60,894		)	43,534
Retained earnings (accumulated deficit)	(15,002		)	17,204		(6,604		)	(10,600		)	(15,002		)
Accumulated other comprehensive income (loss)	(922		)	25		36			(61		)	(922		)
	27,611			17,352		55,042			(72,394		)	27,611
Less treasury stock, at cost	22,858			331		4,800			(5,131		)	22,858
Total Stockholders’ Equity	4,753			17,021		50,242			(67,263		)	4,753
Total Liabilities and Stockholders’ Equity	$	50,472		$	17,601	$	56,417		$	(100,655	)	$	23,835

	Balance Sheet
	At December 31, 2018
	CBS Corp.			CBS Operations Inc.		Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Assets
Cash and cash equivalents	$	148		$	—	$	174		$	—		$	322
Receivables, net	27			1		4,013			—			4,041
Programming and other inventory	2			2		1,984			—			1,988
Prepaid expenses and other current assets	81			46		310			(36		)	401
Total current assets	258			49		6,481			(36		)	6,752
Property and equipment	31			223		2,672			—			2,926
Less accumulated depreciation and amortization	14			184		1,519			—			1,717
Net property and equipment	17			39		1,153			—			1,209
Programming and other inventory	5			4		3,874			—			3,883
Goodwill	98			62		4,760			—			4,920
Intangible assets	—			—		2,638			—			2,638
Investments in consolidated subsidiaries	47,600			16,901		—			(64,501		)	—
Deferred income tax assets, net	—			—		29			—			29
Other assets	281			—		2,114			—			2,395
Assets held for sale	—			—		33			—			33
Intercompany	—			526		31,686			(32,212		)	—
Total Assets	$	48,259		$	17,581	$	52,768		$	(96,749	)	$	21,859
Liabilities and Stockholders’ Equity
Accounts payable	$	5		$	31	$	165		$	—		$	201
Participants’ share and royalties payable	—			—		1,177			—			1,177
Accrued programming and production costs	3			2		699			—			704
Commercial paper	674			—		—			—			674
Accrued expenses and other current liabilities	396			308		1,149			(36		)	1,817
Total current liabilities	1,078			341		3,190			(36		)	4,573
Long-term debt	9,388			—		77			—			9,465
Other liabilities	2,777			212		2,028			—			5,017
Intercompany	32,212			—		—			(32,212		)	—
Stockholders’ Equity:
Preferred stock	—			—		126			(126		)	—
Common stock	1			123		590			(713		)	1
Additional paid-in capital	43,637			—		60,894			(60,894		)	43,637
Retained earnings (accumulated deficit)	(17,201		)	17,214		(9,381		)	(7,833		)	(17,201		)
Accumulated other comprehensive income (loss)	(775		)	22		44			(66		)	(775		)
	25,662			17,359		52,273			(69,632		)	25,662
Less treasury stock, at cost	22,858			331		4,800			(5,131		)	22,858
Total Stockholders’ Equity	2,804			17,028		47,473			(64,501		)	2,804
Total Liabilities and Stockholders’ Equity	$	48,259		$	17,581	$	52,768		$	(96,749	)	$	21,859

	Statement of Cash Flows
	For the Six Months Ended June 30, 2019
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations		CBS Corp. Consolidated
Net cash flow (used for) provided by operating activities	$	(525	)	$	(223	)	$	1,062		$	—	$	314
Investing Activities:
Investments in and advances to investee companies	—			—			(72		)	—		(72		)
Capital expenditures	—			(4		)	(56		)	—		(60		)
Acquisitions, net of cash acquired	—			—			(39		)	—		(39		)
Proceeds from dispositions	—			—			736			—		736
Proceeds from sale of investments	—			—			15			—		15
Other investing activities	2			—			—			—		2
Net cash flow provided by (used for) investing activities	2			(4		)	584			—		582
Financing Activities:
Repayments of short-term debt borrowings, net	(674		)	—			—			—		(674		)
Proceeds from issuance of senior notes	493			—			—			—		493
Repayment of senior notes	(600		)	—			—			—		(600		)
Payment of finance lease obligations	—			—			(6		)	—		(6		)
Payment of contingent consideration	—			—			(3		)	—		(3		)
Dividends	(138		)	—			—			—		(138		)
Purchase of Company common stock	(14		)	—			—			—		(14		)
Payment of payroll taxes in lieu of issuing shares for stock-based compensation	(43		)	—			—			—		(43		)
Acquisition of noncontrolling interest	—			—			(26		)	—		(26		)
Proceeds from exercise of stock options	11			—			—			—		11
Increase (decrease) in intercompany payables	1,353			227			(1,580		)	—		—
Net cash flow provided by (used for) financing activities	388			227			(1,615		)	—		(1,000		)
Net (decrease) increase in cash, cash equivalents and restricted cash	(135		)	—			31			—		(104		)
Cash, cash equivalents and restricted cash at beginning of period (includes $120 of restricted cash)	268			—			174			—		442
Cash, cash equivalents and restricted cash at end of period (includes $122 of restricted cash)	$	133		$	—		$	205		$	—	$	338

	Statement of Cash Flows
	For the Six Months Ended June 30, 2018
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations		CBS Corp. Consolidated
Net cash flow (used for) provided by operating activities	$	(234	)	$	(130	)	$	1,407		$	—	$	1,043
Investing Activities:
Investments in and advances to investee companies	—			—			(71		)	—		(71		)
Capital expenditures	—			(7		)	(55		)	—		(62		)
Acquisitions, net of cash acquired	—			—			(29		)	—		(29		)
Other investing activities	2			—			—			—		2
Net cash flow provided by (used for) investing activities from continuing operations	2			(7		)	(155		)	—		(160		)
Net cash flow used for investing activities from discontinued operations	(23		)	—			—			—		(23		)
Net cash flow used for investing activities	(21		)	(7		)	(155		)	—		(183		)
Financing Activities:
Repayments of short-term debt borrowings, net	(309		)	—			—			—		(309		)
Payment of finance lease obligations	—			—			(8		)	—		(8		)
Payment of contingent consideration	—			—			(5		)	—		(5		)
Dividends	(140		)	—			—			—		(140		)
Purchase of Company common stock	(394		)	—			—			—		(394		)
Payment of payroll taxes in lieu of issuing shares for stock-based compensation	(58		)	—			—			—		(58		)
Proceeds from exercise of stock options	22			—			—			—		22
Other financing activities	(1		)	—			—			—		(1		)
Increase (decrease) in intercompany payables	1,068			137			(1,205		)	—		—
Net cash flow provided by (used for) financing activities	188			137			(1,218		)	—		(893		)
Net (decrease) increase in cash and cash equivalents	(67		)	—			34			—		(33		)
Cash and cash equivalents at beginning of period	173			—			112			—		285
Cash and cash equivalents at end of period	$	106		$	—		$	146		$	—	$	252