猫咪社区

(1)听听Basis of Presentation

The accompanying consolidated financial statements of 猫咪社区 (formerly named 猫咪社区 Spinco,听Inc.; see discussion below pertaining to the Starz Spin-Off (defined below)) (鈥溍ㄟ渖缜�,鈥� 鈥渨e,鈥� 鈥渙ur,鈥� 鈥渦s鈥� or the 鈥淐ompany鈥� unless the context otherwise requires) represent a consolidation of certain media and entertainment related assets and businesses. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

猫咪社区, through its ownership of interests in subsidiaries and other companies, is primarily engaged in the media and entertainment industries primarily in North America and the United Kingdom. Our significant subsidiaries include Sirius听XM Holdings Inc. (鈥淪IRIUS听XM鈥�), Formula听1 and Braves Holdings, LLC (鈥淏raves Holdings鈥�). Our significant investment accounted for under the equity method of accounting is Live Nation Entertainment, Inc. (鈥淟ive Nation鈥�). As discussed in notes听2 and 7, 猫咪社区 obtained a nearly 20% interest in Delta Topco Limited (鈥淒elta Topco鈥�), the parent company of Formula听1, a global motorsports business, during 2016 and acquired the remaining interests, other than a nominal number of shares held by certain Formula听1 teams, during January 2017.

In September 2011, 猫咪社区 Interactive Corporation (鈥溍ㄟ渖缜� Interactive鈥� and formerly named 猫咪社区) completed the split-off of its former wholly-owned subsidiary (then known as 猫咪社区) from its 猫咪社区 Interactive tracking stock group (the 鈥淪plit-Off鈥�).

In January 2013, Starz (which was renamed Starz Acquisition, LLC in connection with its acquisition by Lions Gate Entertainment Corp. and was formerly known as 猫咪社区) spun-off (the 鈥淪tarz Spin-Off鈥�) its then-former wholly-owned subsidiary, which, at the time of the Starz Spin-Off, held all of the businesses, assets and liabilities of Starz not associated with Starz, LLC (with the exception of the Starz, LLC office building). The transaction was effected as a pro-rata dividend of shares of 猫咪社区 to the stockholders of Starz.

Also in January 2013, 猫咪社区 obtained a controlling interest and began consolidating SIRIUS听XM. SIRIUS听XM, since the date of our investment, has repurchased approximately 2.5 billion SIRIUS听XM shares for approximately $9.4 billion. 猫咪社区 continues to maintain a controlling interest in SIRIUS听XM following the completion of the share repurchases. As of December听31, 2018, we owned approximately 73% of the outstanding equity interest in SIRIUS听XM. On February 1, 2019, SIRIUS XM issued shares of SIRIUS XM Common Stock in conjunction with its acquisition of Pandora Media, Inc. (鈥淧andora鈥�), which reduced our economic ownership in SIRIUS XM to approximately 67% as of such date. See note 7 for more information regarding the acquisition of Pandora.

During 2014, 猫咪社区鈥檚 board of directors approved the issuance of shares of its Series听C 猫咪社区 common stock to holders of its Series听A and Series听B 猫咪社区 common stock, effected by means of a dividend. On July听23, 2014, holders of Series听A and Series听B 猫咪社区 common stock received a dividend of two shares of Series听C 猫咪社区 common stock for each share of Series听A or Series听B 猫咪社区 common stock held by them as of July听7, 2014. Additionally, in connection with the Series听C 猫咪社区 common stock issuance and the Broadband Spin-Off (defined below), outstanding Series听A 猫咪社区 common stock warrants have been adjusted, as well as the number of shares covered by outstanding cash convertible note hedges and purchased call options (the 鈥淏ond Hedge Transaction鈥�). See note听10 for further discussion regarding the warrants and Bond Hedge Transaction.

On November听4, 2014, 猫咪社区 completed the spin-off to its stockholders common stock of a newly formed company called 猫咪社区 Broadband Corporation (鈥溍ㄟ渖缜� Broadband鈥�) (the 鈥淏roadband Spin-Off鈥�). In the Broadband Spin-Off, record holders of Series听A, Series听B and Series听C 猫咪社区 common stock received one share of the corresponding series of 猫咪社区 Broadband common stock for every four shares of common stock held by them as of the record date for the Broadband Spin-Off, with cash paid in lieu of fractional shares.

During August 2014, 猫咪社区 Interactive completed the distribution of 猫咪社区 TripAdvisor Holdings, Inc. (鈥溍ㄟ渖缜� TripAdvisor鈥�) (the 鈥淭ripAdvisor Spin-Off鈥�). During July 2016, 猫咪社区 Interactive completed the spin-off of CommerceHub, Inc. (鈥淐ommerceHub鈥�) (the 鈥淐ommerceHub Spin-Off鈥�). During November 2016, 猫咪社区 Interactive completed the split-off of 猫咪社区 Expedia Holdings, Inc. (鈥淓xpedia Holdings鈥�) (the 鈥淓xpedia Holdings Split-Off鈥�). During March 2018, 猫咪社区 Interactive completed the split-off of GCI 猫咪社区, Inc. (鈥淕CI 猫咪社区鈥�) (the 鈥淕CI 猫咪社区 Split-Off鈥�) and 猫咪社区 Interactive was subsequently renamed Qurate Retail, Inc. (鈥淨urate Retail鈥�). Following these transactions, each of these companies operates (or in the case of Starz and CommerceHub, prior to their respective acquisitions, operated) as separate publicly traded companies, none of which has (or, in the case of Starz and CommerceH