Supplemental Financial Information

3 Months Ended

Mar. 31, 2020

Additional Financial Information Disclosure [Abstract]

15) SUPPLEMENTAL FINANCIAL INFORMATION

Supplemental Cash Flow Information



	Three Months Ended
	March 31,
	2020		2019
Cash paid for interest	$	322	$	340

Cash paid for income taxes	$	55	$	197

Noncash additions to operating lease assets	$	55	$	179

Variable Interest Entities

In the normal course of business, we enter into joint ventures or make investments with business partners that support our underlying business strategy and provide us the ability to enter new markets to expand the reach of our brands, develop new programming and/or distribute our existing content. In certain instances, an entity in which we make an investment may qualify as a variable interest entity (“VIE”). In determining whether we are the primary beneficiary of a VIE, we assess whether we have the power to direct matters that most significantly impact the activities of the VIE and have the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.

The Consolidated Balance Sheets include assets and liabilities related to consolidated VIEs totaling $137 million and $32 million, respectively, at March 31, 2020, and $141 million and $22 million, respectively, at December 31, 2019. The consolidated VIEs’ revenues, expenses and operating income were not significant for any period presented.

Acquisition of Miramax

In April 2020, we completed the acquisition of a 49% stake in Miramax, a global film and television studio, for $375 million, which included a cash payment at closing of approximately $150 million, along with a commitment to invest $45 million annually over the next five years, or $225 million, to be used for new film and television productions and working capital. In conjunction with this acquisition, we entered into commercial agreements with Miramax under which we have exclusive, long-term distribution rights to Miramax’s catalog, adding more than 700 titles to our existing library. In addition to maximizing library content distribution, we also have certain rights to co-produce, co-finance and/or distribute new film and television projects. The investment will be accounted for as a consolidated VIE beginning in the second quarter of 2020.

Gain on Sale of Assets

During the first quarter of 2019, we completed the sale of CBS Television City for $750 million. We guaranteed a specified level of cash flows to be generated by the business during the first five years following the completion of the sale. This transaction resulted in a gain of $549 million ($386 million, net of tax), which included a reduction for the estimated amount payable under the guarantee obligation.

Lease Income

We enter into operating leases for the use of our owned production facilities and office buildings. Lease payments received under these agreements consist of fixed payments for the rental of space and certain building operating costs, as well as variable payments based on usage of production facilities and services, and escalating costs of building operations. We recorded total lease income, including both fixed and variable amounts, of $34 million and$40 million for the three months ended March 31, 2020 and 2019, respectively.