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Exhibit 99.1


Attributed Financial Information for Tracking Stock Groups

        Our Liberty Interactive common stock is intended to reflect the separate performance of our Interactive Group which is comprised of our businesses engaged in video and on-line commerce, including our subsidiaries, QVC, Inc., Provide Commerce, Inc., Backcountry.com, Inc., Bodybuilding.com, LLC and BuySeasons, Inc. and our interests in IAC/InterActiveCorp, Expedia, Inc., HSN, Inc., Interval Leisure Group, Inc., Ticketmaster and Tree.com, Inc. Our Liberty Entertainment common stock is intended to reflect the separate performance of our Entertainment Group which includes our wholly-owned subsidiaries Starz Entertainment, LLC, FUN Technologies, Inc, and Liberty Sports Group, our approximate 51% ownership interest in The DIRECTV Group, Inc., as well as other minority equity interests in GSN, LLC and WildBlue Communications, Inc. Our Liberty Capital common stock is intended to reflect the separate performance of our Capital Group which is comprised of all of our assets and businesses not attributed to the Interactive Group or the Entertainment Group.

        The following tables present our assets, liabilities, revenue, expenses and cash flows as of and for the three and nine months ended September 30, 2008 and 2007. The tables further present our assets, liabilities, revenue, expenses and cash flows that are attributed to the Interactive Group, the Entertainment Group and the Capital Group, respectively. The financial information should be read in conjunction with our unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2008 included in this Quarterly Report on Form 10-Q. The attributed financial information presented in the tables has been prepared assuming the Reclassification had been completed as of January 1, 2007.

        Notwithstanding the following attribution of assets, liabilities, revenue, expenses and cash flows to the Interactive Group, the Entertainment Group and the Capital Group, our tracking stock structure does not affect the ownership or the respective legal title to our assets or responsibility for our liabilities. We and our subsidiaries are each responsible for our respective liabilities. Holders of Liberty Interactive common stock, Liberty Entertainment common stock and Liberty Capital common stock are holders of our common stock and are subject to risks associated with an investment in our company and all of our businesses, assets and liabilities. The issuance of Liberty Interactive common stock, Liberty Entertainment common stock and Liberty Capital common stock does not affect the rights of our creditors or creditors of our subsidiaries.

1


 SUMMARY ATTRIBUTED FINANCIAL DATA

Interactive Group

 
   September 30,
2008 		  December 31,
2007 		 
 
   amounts in millions
  

Summary balance sheet data:

              

Current assets

   $ 3,758     2,921  

Cost investments

   $ 867     2,044  

Equity investments

   $ 2,167     1,311  

Total assets

   $ 19,510     19,326  

Long-term debt, including current portion

   $ 8,365     7,177  

Long-term deferred income tax liabilities

   $ 2,269     2,670  

Attributed net assets

   $ 7,186     7,530  

 

 
   Three months ended September 30,   Nine months ended September 30,  
 
   2008   2007   2008   2007  
 
   amounts in millions
  

Summary operations data:

                          

Revenue

   $ 1,798     1,760     5,702     5,322  

Cost of sales

     (1,179 )   (1,116 )   (3,645 )   (3,338 )

Operating expenses

     (173 )   (166 )   (534 )   (500 )

Selling, general and administrative expenses(1)

     (142 )   (122 )   (425 )   (375 )

Depreciation and amortization

     (143 )   (135 )   (418 )   (397 )
                   
 

Operating income

     161     221     680     712  

Interest expense

    
(122
)		  
(121
)		  
(365
)		  
(340
)

Other than temporary declines in fair value of investments

     (440 )   —     (440 )   —  

Other income (expense), net

     (38 )   39     (27 )   115  

Income tax benefit (expense)

     164     (55 )   111     (196 )

Minority interests in earnings of subsidiaries

     (8 )   (6 )   (25 )   (20 )
                   
 

Net earnings (loss)

   $ (283 )   78     (66 )   271  
                   
(1)
Includes stock-based compensation of $8 million and $7 million for the three months ended September 30, 2008 and 2007, respectively; and $25 million and $29 million for the nine months ended September 30, 2008 and 2007, respectively.

2


 SUMMARY ATTRIBUTED FINANCIAL DATA

Entertainment Group

 
   September 30,
2008 		  December 31,
2007 		 
 
   amounts in millions
  

Summary balance sheet data:

              

Current assets

   $ 1,945     793  

Cost investments

   $ 3     10,652  

Equity investments

   $ 13,307     249  

Total assets

   $ 17,708     13,808  

Long-term debt, including current portion

   $ 2,290     473  

Long-term deferred income tax liabilities

   $ 1,863     3,521  

Attributed net assets

   $ 13,008     9,457  

 

 
   Three months ended September 30,   Nine months ended September 30,  
 
   2008   2007   2008   2007  
 
   amounts in millions
  

Summary operations data:

                          

Revenue

   $ 362     300     1,031     851  

Operating expenses

     (238 )   (176 )   (664 )   (532 )

Selling, general and administrative expenses(1)

     (65 )   (46 )   (187 )   (134 )

Depreciation and amortization

     (12 )   (9 )   (36 )   (29 )

Impairment of long-lived assets

     —     (41 )   —     (41 )
                   
 

Operating income

     47     28     144     115  

Gain (losses) on dispositions, net

    
(2
)		  
—		    
3,664		    
—		  

Share of earnings of affiliates, net

     116     1     314     12  

Other income (expense), net

     82     39     (20 )   21  

Income tax benefit (expense)

     (96 )   (30 )   1,611     (57 )

Minority interests in losses of subsidiaries

     —     14     —     18  
                   
 

Net earnings

   $ 147     52     5,713     109  
                   
(1)
Includes stock-based compensation of $15 million and $9 million for the three months ended September 30, 2008 and 2007, respectively, and $37 million and $26 million for the nine months ended September 30, 2008 and 2007, respectively.

3


 SUMMARY ATTRIBUTED FINANCIAL DATA

Capital Group

 
   September 30,
2008 		  December 31,
2007 		 
 
   amounts in millions
  

Summary balance sheet data:

              

Current assets

   $ 3,183     2,759  

Cost investments

   $ 3,099     4,873  

Total assets

   $ 9,658     12,679  

Long-term debt, including current portion

   $ 3,610     4,065  

Long-term deferred income tax liabilities

   $ 1,408     2,267  

Attributed net assets

   $ 1,465     2,599  

 

 
   Three months ended September 30,   Nine months ended September 30,  
 
   2008   2007   2008   2007  
 
   amounts in millions
  

Summary operations data:

                          

Revenue

   $ 221     191     486     394  

Operating expenses

     (171 )   (155 )   (383 )   (326 )

Selling, general and administrative expenses(1)

     (140 )   (54 )   (296 )   (147 )

Depreciation and amortization

     (24 )   (32 )   (78 )   (73 )

Impairment of long-lived assets

     (34 )   —     (34 )   —  
                   
 

Operating loss

     (148 )   (50 )   (305 )   (152 )

Interest expense

    
(43
)		  
(44
)		  
(124
)		  
(109
)

Realized and unrealized gains (losses) on financial instruments, net

     14     380     (188 )   511  

Gain on dispositions, net

     —     2     15     625  

Other income, net

     29     41     81     104  

Income tax benefit (expense)

     38     (130 )   214     208  

Minority interests in earnings of subsidiaries

     —     (10 )   (4 )   (19 )
                   
 

Earnings (loss) from continuing operations

     (110 )   189     (311 )   1,168  

Earnings from discontinued operations, net of taxes

     —     —     —     149  
                   
 

Net earnings (loss)

   $ (110 )   189     (311 )   1,317  
                   
(1)
Includes stock-based compensation of $1 million and $1 million for the three months ended September 30, 2008 and 2007, respectively; and $5 million and $2 million for the nine months ended September 30, 2008 and 2007, respectively.

4


 BALANCE SHEET INFORMATION
September 30, 2008
(unaudited)

 
   Attributed (note 1)    
    
  
 
   Interactive
Group 		  Entertainment
Group 		  Capital
Group 		  Inter-group
eliminations 		  Consolidated
Liberty 		 
 
   amounts in millions
  

Assets

                                

Current assets:

                                
 

Cash and cash equivalents

   $ 1,442     1,076     1,356     —     3,874  
 

Trade and other receivables, net

     881     272     200     (3 )   1,350  
 

Inventory, net

     1,157     —     —     —     1,157  
 

Program rights

     —     509     —     (3 )   506  
 

Short-term marketable securities

     —     —     523     —     523  
 

Financial instruments

     —     —     983     —     983  
 

Current deferred tax assets

     195     80     —     (275 )   —  
 

Other current assets

     83     8     121     —     212  
                       
   

Total current assets

     3,758     1,945     3,183     (281 )   8,605  
                       

Investments in available-for-sale securities and other cost investments (note 2)

     867     3     3,099     —     3,969  

Long-term financial instruments

     11     —     959     —     970  

Investments in affiliates, accounted for using the equity method (note 3)

     2,167     13,307     268     —     15,742  

Property and equipment, net

     1,042     123     152     —     1,317  

Goodwill

     5,927     1,749     397     —     8,073  

Trademarks

     2,490     6     18     —     2,514  

Intangible assets subject to amortization, net

     3,205     150     257     —     3,612  

Other assets, at cost, net of accumulated amortization

     43     425     1,325     —     1,793  
                       
   

Total assets

   $ 19,510     17,708     9,658     (281 )   46,595  
                       

Liabilities and Equity

                                

Current liabilities:

                                
 

Accounts payable

   $ 584     16     26     —     626  
 

Accrued interest

     65     2     38     —     105  
 

Other accrued liabilities

     516     166     150     —     832  
 

Intergroup payable (receivable)

     (33 )   (13 )   46     —     —  
 

Financial instruments

     40     21     601     —     662  
 

Current portion of debt (note 4)

     926     532     108     —     1,566  
 

Accrued stock compensation

     16     202     7     —     225  
 

Current deferred tax liabilities

     —     —     876     (275 )   601  
 

Other current liabilities

     19     7     36     (3 )   59  
                       
   

Total current liabilities

     2,133     933     1,888     (278 )   4,676  
                       

Long-term debt (note 4)

     7,439     1,758     3,502     —     12,699  

Long-term financial instruments

     84     121     32     —     237  

Deferred income tax liabilities (note 6)

     2,269     1,863     1,408     —     5,540  

Other liabilities

     278     25     1,353     (1 )   1,655  
                       
   

Total liabilities

     12,203     4,700     8,183     (279 )   24,807  

Minority interests in equity of subsidiaries

     121     —     10     —     131  

Equity/Attributed net assets

     7,186     13,008     1,465     (2 )   21,657  
                       
   

Total liabilities and equity

   $ 19,510     17,708     9,658     (281 )   46,595  
                       

5


 STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Three months ended September 30, 2008
(unaudited)

 
   Attributed (note 1)    
    
  
 
   Interactive
Group 		  Entertainment
Group 		  Capital
Group 		  Inter-group
eliminations 		  Consolidated
Liberty 		 
 
   amounts in millions
  

Revenue:

                                
 

Net retail sales

   $ 1,798     —     —     —     1,798  
 

Communications and programming services

     —     362     221     (3 )   580  
                       

    1,798     362     221     (3 )   2,378  
                       

Operating costs and expenses:

                                
 

Cost of sales

     1,179     —     —     —     1,179  
 

Operating

     173     238     171     —     582  
 

Selling, general and administrative, including stock-based compensation (notes 1 and 5)

     142     65     140     —     347  
 

Depreciation and amortization

     143     12     24     —     179  
 

Impairment of long-lived assets

     —     —     34     —     34  
                       

    1,637     315     369     —     2,321  
                       
   

Operating income (loss)

     161     47     (148 )   (3 )   57  

Other income (expense):

                                
 

Interest expense

     (122 )   (25 )   (43 )   —     (190 )
 

Dividend and interest income

     5     5     28     —     38  
 

Share of earnings of affiliates, net

     23     116     2     —     141  
 

Realized and unrealized gains (losses) on financial instruments, net

     (43 )   106     14     —     77  
 

Losses on dispositions, net

     —     (2 )   —     —     (2 )
 

Other than temporary declines in fair value of investments

     (440 )   (4 )   —     —     (444 )
 

Other, net

     (23 )   —     (1 )   —     (24 )
                       

    (600 )   196     —     —     (404 )
                       
   

Earnings (loss) before income taxes and minority interests

     (439 )   243     (148 )   (3 )   (347 )

Income tax benefit (expense) (note 6)

    
164		    
(96
)		  
38		    
1		    
107		  

Minority interests in earnings of subsidiaries

     (8 )   —     —     —     (8 )
                       
   

Net earnings (loss)

   $ (283 )   147     (110 )   (2 )   (248 )
                       

Other comprehensive earnings (loss), net of taxes:

                                
 

Foreign currency translation adjustments

     (116 )   —     (1 )   —     (117 )
 

Unrealized holding losses arising during the period

     (42 )   (2 )   —     —     (44 )
 

Recognition of previously unrealized losses on available-for-sale securities, net

     273     —     —     —     273  
                       
   

Other comprehensive earnings (loss)

     115     (2 )   (1 )   —     112  
                       
     

Comprehensive earnings (loss)

   $ (168 )   145     (111 )   (2 )   (136 )
                       

6


 STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Three months ended September 30, 2007
(unaudited)

 
   Attributed (note 1)    
  
 
   Interactive
Group 		  Entertainment
Group 		  Capital
Group 		  Consolidated
Liberty 		 
 
   amounts in millions
  

Revenue:

                          
 

Net retail sales

   $ 1,760     —     —     1,760  
 

Communications and programming services

     —     300     191     491  
                   

    1,760     300     191     2,251  
                   

Operating costs and expenses:

                          
 

Cost of sales

     1,116     —     —     1,116  
 

Operating

     166     176     155     497  
 

Selling, general and administrative, including stock-based compensation (notes 1 and 5)

     122     46     54     222  
 

Depreciation and amortization

     135     9     32     176  
 

Impairment of long-lived assets

     —     41     —     41  
                   

    1,539     272     241     2,052  
                   
   

Operating income (loss)

     221     28     (50 )   199  

Other income (expense):

                          
 

Interest expense

     (121 )   (8 )   (44 )   (173 )
 

Dividend and interest income

     11     29     67     107  
 

Share of earnings (losses) of affiliates, net

     22     1     (24 )   (1 )
 

Realized and unrealized gains on financial instruments, net

     2     18     380     400  
 

Gains on dispositions, net

     —     —     2     2  
 

Other, net

     4     —     (2 )   2  
                   

    (82 )   40     379     337  
                   
   

Earnings before income taxes and minority interests

     139     68     329     536  

Income tax expense (note 6)

    
(55
)		  
(30
)		  
(130
)		  
(215
)

Minority interests in losses (earnings) of subsidiaries

     (6 )   14     (10 )   (2 )
                   
   

Net earnings

   $ 78     52     189     319  
                   

Other comprehensive earnings (loss), net of taxes:

                          
 

Foreign currency translation adjustments

     61     —     7     68  
 

Unrealized holding losses arising during the period

     (217 )   209     (262 )   (270 )
 

Recognition of previously unrealized gains on available-for-sale securities, net

     —     —     (1 )   (1 )
                   
   

Other comprehensive earnings (loss)

     (156 )   209     (256 )   (203 )
                   
     

Comprehensive earnings (loss)

   $ (78 )   261     (67 )   116  
                   

7


 STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Nine months ended September 30, 2008
(unaudited)

 
   Attributed (note 1)    
    
  
 
   Interactive
Group 		  Entertainment
Group 		  Capital
Group 		  Inter-group
eliminations 		  Consolidated
Liberty 		 
 
   amounts in millions
  

Revenue:

                                
 

Net retail sales

   $ 5,702     —     —     —     5,702  
 

Communications and programming services

     —     1,031     486     (3 )   1,514  
                       

    5,702     1,031     486     (3 )   7,216  
                       

Operating costs and expenses:

                                
 

Cost of sales

     3,645     —     —     —     3,645  
 

Operating

     534     664     383     —     1,581  
 

Selling, general and administrative including stock-based compensation (notes 1 and 5)

     425     187     296     —     908  
 

Depreciation and amortization

     418     36     78     —     532  
 

Impairment of long-lived assets

     —     —     34     —     34  
                       

    5,022     887     791     —     6,700  
                       
   

Operating income (loss)

     680     144     (305 )   (3 )   516  

Other income (expense):

                                
 

Interest expense

     (365 )   (54 )   (124 )   —     (543 )
 

Dividend and interest income

     18     14     106     —     138  
 

Share of earnings (losses) of affiliates, net

     58     314     (21 )   —     351  
 

Realized and unrealized gains (losses) on financial instruments, net

     (81 )   24     (188 )   —     (245 )
 

Gains on dispositions, net

     —     3,664     15     —     3,679  
 

Other than temporary declines in fair value of investments

     (440 )   (4 )   (1 )   —     (445 )
 

Other, net

     (22 )   —     (3 )   —     (25 )
                       

    (832 )   3,958     (216 )   —     2,910  
                       
   

Earnings (loss) from continuing operations before income taxes and minority interests

     (152 )   4,102     (521 )   (3 )   3,426  

Income tax benefit (note 6)

    
111		    
1,611		    
214		    
1		    
1,937		  

Minority interests in earnings of subsidiaries

     (25 )   —     (4 )   —     (29 )
                       
   

Net earnings (loss)

   $ (66 )   5,713     (311 )   (2 )   5,334  
                       

Other comprehensive earnings (loss), net of taxes:

                                
 

Foreign currency translation adjustments

     (38 )   —     (3 )   —     (41 )
 

Unrealized holding losses arising during the period

     (447 )   (317 )   (2 )   —     (766 )
 

Recognition of previously unrealized losses (gains) on available-for-sale securities, net

     273     (2,273 )   —     —     (2,000 )
 

Change in fair value of cash flow hedges

     (1 )   —     —     —     (1 )
                       
   

Other comprehensive loss

     (213 )   (2,590 )   (5 )   —     (2,808 )
                       
     

Comprehensive earnings (loss)

   $ (279 )   3,123     (316 )   (2 )   2,526  
                       

8


 STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS INFORMATION
Nine months ended September 30, 2007
(unaudited)

 
   Attributed (note 1)    
  
 
   Interactive
Group 		  Entertainment
Group 		  Capital
Group 		  Consolidated
Liberty 		 
 
   amounts in millions
  

Revenue:

                          
 

Net retail sales

   $ 5,322     —     —     5,322  
 

Communications and programming services

     —     851     394     1,245  
                   

    5,322     851     394     6,567  
                   

Operating costs and expenses:

                          
 

Cost of sales

     3,338     —     —     3,338  
 

Operating

     500     532     326     1,358  
 

Selling, general and administrative, including stock-based compensation (notes 1 and 5)

     375     134     147     656  
 

Depreciation and amortization

     397     29     73     499  
 

Impairment of long-lived assets

     —     41     —     41  
                   

    4,610     736     546     5,892  
                   
   

Operating income (loss)

     712     115     (152 )   675  

Other income (expense):

                          
 

Interest expense

     (340 )   (19 )   (109 )   (468 )
 

Dividend and interest income

     34     59     153     246  
 

Share of earnings (losses) of affiliates, net

     61     12     (49 )   24  
 

Realized and unrealized gains (losses) on financial instruments, net

     —     (18 )   511     493  
 

Gains on dispositions, net

     12     —     625     637  
 

Other, net

     8     (1 )   —     7  
                   

    (225 )   33     1,131     939  
                   
   

Earnings from continuing operations before income taxes and minority interests

     487     148     979     1,614  

Income tax benefit (expense) (note 6)

    
(196
)		  
(57
)		  
208		    
(45
)

Minority interests in losses (earnings) of subsidiaries

     (20 )   18     (19 )   (21 )
                   
   

Earnings from continuing operations

     271     109     1,168     1,548  

Earnings from discontinued operations, net of taxes

    
—		    
—		    
149		    
149		  
                   
   

Net earnings

   $ 271     109     1,317     1,697  
                   

Other comprehensive earnings (loss), net of taxes:

                          
 

Foreign currency translation adjustments

     82     —     8     90  
 

Unrealized holding losses arising during the period

     (250 )   234     (301 )   (317 )
 

Recognition of previously unrealized gains on available-for-sale securities, net

     —     —     (397 )   (397 )
                   
   

Other comprehensive earnings (loss)

     (168 )   234     (690 )   (624 )
                   
     

Comprehensive earnings

   $ 103     343     627     1,073  
                   

9


 STATEMENT OF CASH FLOWS INFORMATION
Nine months ended September 30, 2008
(unaudited)

 
   Attributed (note 1)    
    
  
 
   Interactive
Group 		  Entertainment
Group 		  Capital
Group 		  Inter-group
eliminations 		  Consolidated
Liberty 		 
 
   amounts in millions
  

Cash flows from operating activities:

                                
 

Net earnings (loss)

   $ (66 )   5,713     (311 )   (2 )   5,334  
 

Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities:

                                
   

Depreciation and amortization

     418     36     78     —     532  
   

Impairment of long-lived assets

     —     —     34     —     34  
   

Stock-based compensation

     25     37     5     —     67  
   

Cash payments for stock-based compensation

     (9 )   (12 )   (1 )   —     (22 )
   

Share of losses (earnings) of affiliates, net

     (58 )   (314 )   21     —     (351 )
   

Realized and unrealized losses (gains) on financial instruments, net

     81     (24 )   188     —     245  
   

Gains on disposition of assets, net

     —     (3,664 )   (15 )   —     (3,679 )
   

Other than temporary declines in fair value of investments

     440     4     1     —     445  
   

Minority interests in earnings of subsidiaries

     25     —     4     —     29  
   

Intergroup tax allocation

     129     44     (173 )   —     —  
   

Intergroup tax payments

     (189 )   (63 )   252     —     —  
   

Other intergroup cash transfers, net

     (68 )   3     65     —     —  
   

Deferred income tax benefit

     (314 )   (1,655 )   (221 )   —     (2,190 )
   

Other noncash charges, net

     26     34     54     —     114  
   

Changes in operating assets and liabilities, net of the effects of acquisitions:

                                
     

Current assets

     116     (46 )   (157 )   3     (84 )
     

Payables and other current liabilities

     (214 )   15     51     (1 )   (149 )
                       
       

Net cash provided (used) by operating activities

     342     108     (125 )   —     325  
                       

Cash flows from investing activities:

                                
 

Cash proceeds from dispositions

     —     6     18     —     24  
 

Net proceeds from settlement of financial instruments

     —     —     12     —     12  
 

Cash paid for acquisitions, net of cash acquired

     (69 )   (7 )   (1 )   —     (77 )
 

Cash received in exchange transactions

     —     465     —     —     465  
 

Capital expended for property and equipment

     (100 )   (6 )   (25 )   —     (131 )
 

Net sales of short term investments

     —     —     79     —     79  
 

Investments in and loans to cost and equity investees

     (340 )   (1,996 )   (213 )   —     (2,549 )
 

Reclass of cash to short-term marketable securities

     —     —     (523 )   —     (523 )
 

Net decrease in restricted cash

     —     —     367     —     367  
 

Other investing activities, net

     15     (11 )   (64 )   —     (60 )
                       
       

Net cash used by investing activities

     (494 )   (1,549 )   (350 )   —     (2,393 )
                       

Cash flows from financing activities:

                                
 

Borrowings of debt

     1,455     1,977     1,226     —     4,658  
 

Repayments of debt

     (274 )   (2 )   (1,008 )   —     (1,284 )
 

Repurchases of Liberty common stock

     (75 )   —     (407 )   —     (482 )
 

Intergroup cash transfers, net

     —     450     (450 )   —     —  
 

Other financing activities, net

     (70 )   2     (18 )   —     (86 )
                       
       

Net cash provided (used) by financing activities

     1,036     2,427     (657 )   —     2,806  
                       

Effect of foreign currency rates on cash

     1     —     —     —     1  
                       
       

Net increase (decrease) in cash and cash equivalents

     885     986     (1,132 )   —     739  
       

Cash and cash equivalents at beginning of period

     557     90     2,488     —     3,135  
                       
       

Cash and cash equivalents at end period

   $ 1,442     1,076     1,356     —     3,874  
                       

10


 STATEMENT OF CASH FLOWS INFORMATION
Nine months ended September 30, 2007
(unaudited)

 
   Attributed (note 1)    
  
 
   Interactive
Group 		  Entertainment
Group 		  Capital
Group 		  Consolidated
Liberty 		 
 
   amounts in millions
  

Cash flows from operating activities:

                          
 

Net earnings

   $ 271     109     1,317     1,697  
 

Adjustments to reconcile net earnings to net cash provided by operating activities:

                          
   

Earnings from discontinued operations

     —     —     (149 )   (149 )
   

Depreciation and amortization

     397     29     73     499  
   

Impairment of long-lived assets

     —     41     —     41  
   

Stock-based compensation

     29     26     2     57  
   

Payments of stock-based compensation

     (35 )   —     (3 )   (38 )
   

Share of losses (earnings) of affiliates, net

     (61 )   (12 )   49     (24 )
   

Realized and unrealized losses (gains) on financial instruments, net

     —     18     (511 )   (493 )
   

Gains on disposition of assets, net

     (12 )   —     (625 )   (637 )
   

Minority interests in earnings (losses) of subsidiaries

     20     (18 )   19     21  
   

Intergroup tax allocation

     194     30     (224 )   —  
   

Intergroup tax payments

     (248 )   (35 )   283     —  
   

Other intergroup cash transfers, net

     (15 )   —     15     —  
   

Deferred income tax expense (benefit)

     (104 )   28     2     (74 )
   

Other noncash charges (credits), net

     (4 )   2     49     47  
   

Changes in operating assets and liabilities, net of the effects of acquisitions:

                          
     

Current assets

     (23 )   (118 )   (104 )   (245 )
     

Payables and other current liabilities

     (115 )   (4 )   108     (11 )
                   
       

Net cash provided by operating activities

     294     96     301     691  
                   

Cash flows from investing activities:

                          
 

Cash proceeds from dispositions

     12     —     465     477  
 

Net payments for settlement of financial instruments

     —     —     (66 )   (66 )
 

Cash paid for acquisitions, net of cash acquired

     (120 )   —     (6 )   (126 )
 

Cash received in exchange transactions

     —     —     1,154     1,154  
 

Capital expended for property and equipment

     (236 )   (6 )   (12 )   (254 )
 

Net purchases of short term investments

     —     —     (215 )   (215 )
 

Investments in and loans to cost and equity investees

     (11 )   —     (80 )   (91 )
 

Investment in special purpose entity

     —     —     (750 )   (750 )
 

Net increase in restricted cash

     —     —     (735 )   (735 )
 

Other investing activities, net

     (24 )   9     4     (11 )
                   
       

Net cash provided (used) by investing activities

     (379 )   3     (241 )   (617 )
                   

Cash flows from financing activities:

                          
 

Borrowings of debt

     860     —     752     1,612  
 

Repayments of debt

     (187 )   (2 )   (162 )   (351 )
 

Repurchases of Liberty common stock

     (821 )   —     (1,305 )   (2,126 )
 

Contribution from minority owner

     —     —     751     751  
 

Intergroup cash transfers, net

     —     (118 )   118     —  
 

Other financing activities, net

     (5 )   —     16     11  
                   
       

Net cash provided (used) by financing activities

     (153 )   (120 )   170     (103 )
                   

Effect of foreign currency rates on cash

     10     —     —     10  
                   

Net cash provided to discontinued operations:

                          
 

Cash provided by operating activities

     —     —     8     8  
 

Cash used by investing activities

     —     —     (9 )   (9 )
 

Change in available cash held by discontinued operations

     —     —     2     2  
                   
       

Net cash provided by discontinued operations

     —     —     1     1  
                   
       

Net increase (decrease) in cash and cash equivalents

     (228 )   (21 )   231     (18 )
       

Cash and cash equivalents at beginning of period

     946     91     2,070     3,107  
                   
       

Cash and cash equivalents at end period

   $ 718     70     2,301     3,089  
                   

11


Notes to Attributed Financial Information

(unaudited)

(1)
The assets attributed to our Interactive Group include our consolidated subsidiaries QVC, Inc., Provide Commerce, Inc., Backcountry.com, Inc., Bodybuilding.com, LLC and BuySeasons, Inc., and our interests in IAC/InterActiveCorp, GSI Commerce, Inc., Expedia, Inc., HSN, Inc., Interval Leisure Group, Inc., Ticketmaster and Tree.com, Inc. Accordingly, the accompanying attributed financial information for the Interactive Group includes our investments in IAC/InterActiveCorp, Expedia, GSI, HSN, Interval, Ticketmaster and Lending Tree, as well as the assets, liabilities, revenue, expenses and cash flows of QVC, Provide, Backcountry, Bodybuilding and BuySeasons,. We have also attributed certain of our debt obligations (and related interest expense) to the Interactive Group based upon a number of factors, including the cash flow available to the Interactive Group and its ability to pay debt service and our assessment of the optimal capitalization for the Interactive Group. The specific debt obligations attributed to each of the Interactive Group, the Entertainment Group and the Capital Group are described in note 4 below. In addition, we have allocated certain corporate general and administrative expenses among the Interactive Group, the Entertainment Group and the Capital Group as described in note 5 below.

12


Notes to Attributed Financial Information (Continued)

(unaudited)

(2)
Investments in available-for-sale securities and other cost investments are summarized as follows:

 
   September 30,
2008 		  December 31,
2007 		 
 
   amounts in millions
  

Interactive Group

              
 

IAC/InterActiveCorp

   $ 720     1,863  
 

Other

     147     181  
           
   

Total attributed Interactive Group

     867     2,044  
           

Entertainment Group

              
 

News Corporation

     —     10,647  
 

Other

     3     5  
           
   

Total attributed Entertainment Group

     3     10,652  
           

Capital Group

              
 

Time Warner Inc. ("Time Warner")(a)

     1,346     1,695  
 

Sprint Nextel Corporation(a)

     533     1,150  
 

Motorola, Inc.(a)

     528     1,187  
 

Viacom, Inc. 

     189     333  
 

Embarq Corporation(a)

     177     216  
 

Other available-for-sale equity securities(a)

     42     104  
 

Other available-for-sale debt securities

     252     156  
 

Other cost investments and related receivables

     32     32  
           
   

Total attributed Capital Group

     3,099     4,873  
           
     

Consolidated Liberty

   $ 3,969     17,569  
           
(3)
The following table presents information regarding certain equity method investments attributed to each of the Interactive Group and the Entertainment Group:

 
   September 30, 2008   Share of earnings
nine months ended
September 30, 		 
 
   Percentage
ownership 		  Carrying
value 		  Fair
value 		 
 
   2008   2007  
 
   dollar amounts in millions
  

Interactive Group

                                
 

Expedia

     24.1 % $ 1,352   $ 1,046   $ 58   $ 52  

Entertainment Group

                                
 

DIRECTV

     50.5 % $ 13,027   $ 14,366   $ 301   $ —  

13


Notes to Attributed Financial Information (Continued)

(unaudited)

(4)
Debt attributed to the Interactive Group, the Entertainment Group and the Capital Group is comprised of the following:

 
   September 30, 2008  
 
   Outstanding
principal 		  Carrying
value 		 
 
   amounts in millions
  

Interactive Group

              
 

7.875% Senior Notes due 2009

   $ 670     669  
 

7.75% Senior Notes due 2009

     233     234  
 

5.7% Senior Notes due 2013

     803     801  
 

8.5% Senior Debentures due 2029

     500     495  
 

8.25% Senior Debentures due 2030

     902     895  
 

QVC bank credit facilities

     5,200     5,200  
 

Other subsidiary debt

     71     71  
           
   

Total Interactive Group debt

     8,379     8,365  
           

Entertainment Group

              
 

3.25% Exchangeable Senior Debentures due 2031(a)

     551     226  
 

Liberty derivative borrowing

     2,011     2,011  
 

Subsidiary debt

     53     53  
           
   

Total Entertainment Group debt

     2,615     2,290  
           

Capital Group

              
 

3.125% Exchangeable Senior Debentures due 2023

     1,264     1,125  
 

4% Exchangeable Senior Debentures due 2029

     869     391  
 

3.75% Exchangeable Senior Debentures due 2030

     810     369  
 

3.5% Exchangeable Senior Debentures due 2031

     497     222  
 

Liberty bank facility

     750     750  
 

Other parent debt

     625     625  
 

Subsidiary debt

     128     128  
           
   

Total Capital Group debt

     4,943     3,610  
           

Total debt

   $ 15,937     14,265  
           
(a)
Subsequent to September 30, 2008, Liberty changed the attribution of its 3.25% Exchangeable Senior Debentures from the Entertainment Group to the Interactive Group along with $380 million in cash.

(5)
Cash and stock-based compensation expense for our corporate employees has been allocated among the Interactive Group, the Entertainment Group and the Capital Group based on the estimated percentage of time spent providing services for each group. Other general and administrative expenses are charged directly to the groups whenever possible and are otherwise allocated based on estimated usage or some other reasonably determined methodology. Amounts

14


Notes to Attributed Financial Information (Continued)

(unaudited)

 
   Nine months ended
September 30, 		 
 
   2008   2007  
 
   amounts in millions
  

Interactive Group

   $ 16     13  

Entertainment Group

   $ 15     11  
(6)
We have accounted for income taxes for the Interactive Group, the Entertainment Group and the Capital Group in the accompanying attributed financial information in a manner similar to a stand-alone company basis. To the extent this methodology differs from our tax sharing policy, differences have been reflected in the attributed net assets of the groups.

(7)
The Liberty Interactive common stock, the Liberty Entertainment common stock and the Liberty Capital common stock have voting and conversion rights under our amended charter. Following is a summary of those rights. Holders of Series A common stock of each group are entitled to one vote per share and holders of Series B common stock of each group are entitled to ten votes per share. Holders of Series C common stock of each group, if issued, will be entitled to 1/100th of a vote per share in certain limited cases and will otherwise not be entitled to vote. In general, holders of Series A and Series B common stock vote as a single class. In certain limited circumstances, the board may elect to seek the approval of only the holders of common stock related to our Interactive Group, our Entertainment Group or our Capital Group.

15



QuickLinks

Attributed Financial Information for Tracking Stock Groups
SUMMARY ATTRIBUTED FINANCIAL DATA
SUMMARY ATTRIBUTED FINANCIAL DATA
SUMMARY ATTRIBUTED FINANCIAL DATA
BALANCE SHEET INFORMATION September 30, 2008 (unaudited)
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION Three months ended September 30, 2008 (unaudited)
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION Three months ended September 30, 2007 (unaudited)
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION Nine months ended September 30, 2008 (unaudited)
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS INFORMATION Nine months ended September 30, 2007 (unaudited)
STATEMENT OF CASH FLOWS INFORMATION Nine months ended September 30, 2008 (unaudited)
STATEMENT OF CASH FLOWS INFORMATION Nine months ended September 30, 2007 (unaudited)
Notes to Attributed Financial Information (unaudited)