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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 Sports, and Liberty Sports Group, our 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 six months ended June 30, 2009 and 2008. 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 six months ended June 30, 2009 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, 2008.

        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

 
  June 30,
2009
  December 31,
2008
 
 
  amounts in millions
 

Summary balance sheet data:

             

Current assets

  $ 2,998     3,282  

Cost investments

  $ 718     739  

Equity investments

  $ 816     901  

Total assets

  $ 16,967     17,487  

Long-term debt, including current portion

  $ 6,968     7,131  

Long-term deferred income tax liabilities

  $ 1,889     1,999  

Attributed net assets

  $ 6,416     6,303  

 

 
  Three months ended
June 30,
  Six months ended
June 30,
 
 
  2009   2008   2009   2008  
 
  amounts in millions
 

Summary operations data:

                         

Revenue

  $ 1,936     1,954     3,767     3,904  

Cost of sales

    (1,208 )   (1,228 )   (2,391 )   (2,466 )

Operating expenses

    (175 )   (181 )   (347 )   (361 )

Selling, general and administrative expenses(1)

    (152 )   (147 )   (297 )   (283 )

Depreciation and amortization

    (135 )   (136 )   (282 )   (275 )
                   
 

Operating income

    266     262     450     519  

Interest expense

    (110 )   (122 )   (206 )   (243 )

Other income (expense), net

    75     29     (102 )   11  

Income tax expense

    (95 )   (67 )   (54 )   (53 )
                   
 

Net earnings

    136     102     88     234  

Less net earnings attributable to the noncontrolling interests

    8     10     17     17  
                   

Net earnings attributable to Liberty Media Corporation shareholders

  $ 128     92     71     217  
                   

(1)
Includes stock-based compensation of $11 million and $12 million for the three months ended June 30, 2009 and 2008, respectively; and $21 million and $17 million for the six months ended June 30, 2009 and 2008, respectively.

2



SUMMARY ATTRIBUTED FINANCIAL DATA

Entertainment Group

 
  June 30,
2009
  December 31,
2008
 
 
  amounts in millions
 

Summary balance sheet data:

             

Current assets

  $ 1,425     1,631  

Equity investments

  $ 13,685     13,366  

Total assets

  $ 16,283     16,322  

Long-term debt, including current portion

  $ 2,066     2,033  

Long-term deferred income tax liabilities

  $ 1,742     1,735  

Attributed net assets

  $ 12,415     12,180  

 

 
  Three months ended
June 30,
  Six months ended
June 30,
 
 
  2009   2008   2009   2008  
 
  amounts in millions
 

Summary operations data:

                         

Revenue

  $ 367     359     736     669  

Operating expenses

    (226 )   (239 )   (417 )   (426 )

Selling, general and administrative expenses(1)

    (75 )   (73 )   (138 )   (122 )

Depreciation and amortization

    (9 )   (12 )   (20 )   (24 )
                   
 

Operating income

    57     35     161     97  

Gains (losses) on dispositions, net

    54     (1 )   54     3,666  

Share of earnings of affiliates, net

    155     155     192     198  

Other expense, net

    (120 )   (93 )   (145 )   (102 )

Income tax benefit (expense)

    3     (33 )   (32 )   1,707  
                   
 

Net earnings

  $ 149     63     230     5,566  
                   

(1)
Includes stock-based compensation of $23 million and $15 million for the three months ended June 30, 2009 and 2008, respectively, and $40 million and $22 million for the six months ended June 30, 2009 and 2008, respectively.

3



SUMMARY ATTRIBUTED FINANCIAL DATA

Capital Group

 
  June 30,
2009
  December 31,
2008
 
 
  amounts in millions
 

Summary balance sheet data:

             

Current assets

  $ 4,384     2,973  

Cost investments

  $ 2,830     2,118  

Total assets

  $ 9,847     8,361  

Long-term debt, including current portion

  $ 4,304     3,063  

Long-term deferred income tax liabilities

  $ 555     1,166  

Attributed net assets

  $ 1,174     1,121  

 

 
  Three months ended
June 30,
  Six months ended
June 30,
 
 
  2009   2008   2009   2008  
 
  amounts in millions
 

Summary operations data:

                         

Revenue

  $ 199     174     324     265  

Operating expenses

    (142 )   (138 )   (235 )   (212 )

Selling, general and administrative expenses(1)

    (54 )   (76 )   (119 )   (156 )

Depreciation and amortization

    (22 )   (28 )   (42 )   (54 )
                   
 

Operating loss

    (19 )   (68 )   (72 )   (157 )

Interest expense

    (33 )   (43 )   (73 )   (81 )

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

    239     41     40     (202 )

Other income, net

    157     15     175     67  

Income tax benefit (expense)

    (143 )   24     (29 )   176  
                   
 

Net earnings (loss)

    201     (31 )   41     (197 )

Less net earnings (loss) attributable to the noncontrolling interests

        (1 )       4  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 201     (30 )   41     (201 )
                   

(1)
Includes stock-based compensation of $1 million and $0 million for the three months ended June 30, 2009 and 2008, respectively; and $2 million and $4 million for the six months ended June 30, 2009 and 2008, respectively

4


BALANCE SHEET INFORMATION
June 30, 2009
(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

  $ 946     618     2,373         3,937  
 

Trade and other receivables, net

    945     249     105         1,299  
 

Inventory, net

    942                 942  
 

Program rights

        481             481  
 

Financial instruments

    1     7     1,811         1,819  
 

Current deferred tax assets

    101     66         (167 )    
 

Other current assets

    63     4     95     (7 )   155  
                       
   

Total current assets

    2,998     1,425     4,384     (174 )   8,633  
                       

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

    718     2     2,830         3,550  

Long-term financial instruments

        96     212         308  

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

    816     13,685     562         15,063  

Property and equipment, net

    1,021     114     142         1,277  

Goodwill

    5,885     367     191         6,443  

Trademarks

    2,492     2     14         2,508  

Intangible assets subject to amortization, net

    2,959     123     204         3,286  

Other assets, at cost, net of accumulated amortization

    78     469     1,308         1,855  
                       
   

Total assets

  $ 16,967     16,283     9,847     (174 )   42,923  
                       

Liabilities and Equity

                               

Current liabilities:

                               
 

Accounts payable

  $ 421     4     15         440  
 

Accrued interest

    60         32         92  
 

Other accrued liabilities

    543     176     96         815  
 

Intergroup payable (receivable)

    (19 )   (84 )   103          
 

Intergroup notes (1)

    502     (251 )   (251 )        
 

Financial instruments

    145         617         762  
 

Current portion of debt (note 4)

    682     617     2,013         3,312  
 

Accrued stock compensation

    15     201     5         221  
 

Current deferred tax liabilities

            1,662     (167 )   1,495  
 

Other current liabilities

    94     4     69     (7 )   160  
                       
   

Total current liabilities

    2,443     667     4,361     (174 )   7,297  
                       

Long-term debt (note 4)

    5,784     1,449     2,291         9,524  

Long-term financial instruments

    158         9         167  

Deferred income tax liabilities (note 6)

    1,889     1,742     555         4,186  

Other liabilities

    175     10     1,457         1,642  
                       
   

Total liabilities

    10,449     3,868     8,673     (174 )   22,816  

Equity/Attributed net assets

    6,416     12,415     1,174         20,005  

Noncontrolling interests in equity of subsidiaries

    102                 102  
                       
   

Total liabilities and equity

  $ 16,967     16,283     9,847     (174 )   42,923  
                       

5


STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Three months ended June 30, 2009
(unaudited)

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

Revenue:

                         
 

Net retail sales

  $ 1,936             1,936  
 

Communications and programming services

        367     199     566  
                   

    1,936     367     199     2,502  
                   

Operating costs and expenses:

                         
 

Cost of sales

    1,208             1,208  
 

Operating

    175     226     142     543  
 

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

    152     75     54     281  
 

Depreciation and amortization

    135     9     22     166  
                   

    1,670     310     218     2,198  
                   
     

Operating income (loss)

    266     57     (19 )   304  

Other income (expense):

                         
 

Interest expense

    (110 )   (18 )   (33 )   (161 )
 

Dividend and interest income

    2         41     43  
 

Intergroup interest income (expense)

    (2 )   1     1      
 

Share of earnings of affiliates, net

    12     155     4     171  
 

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

    25     (101 )   239     163  
 

Gains (losses) on dispositions, net

    (1 )   54     113     166  
 

Other, net

    39     (2 )   (2 )   35  
                   

    (35 )   89     363     417  
                   
   

Earnings before income taxes

    231     146     344     721  

Income tax benefit (expense) (note 6)

   
(95

)
 
3
   
(143

)
 
(235

)
                   
   

Net earnings

    136     149     201     486  

Less net earnings attributable to the noncontrolling interests

    8             8  
                   

Net earnings attributable to Liberty Media Corporation shareholders

  $ 128     149     201     478  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    67         1     68  
 

Unrealized holding gains arising during the period

    12     1     10     23  
 

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

        (1 )       (1 )
 

Share of other comprehensive earnings (losses) of equity affiliates

    10     (5 )       5  
 

Other

    20             20  
                   
       

Other comprehensive earnings (loss)

    109     (5 )   11     115  
                   
         

Comprehensive earnings

    245     144     212     601  

Less comprehensive earnings attributable to the noncontrolling interests

    11             11  
                   

Comprehensive earnings attributable to Liberty Media Corporation shareholders

  $ 234     144     212     590  
                   

6


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

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

Revenue:

                         
 

Net retail sales

  $ 1,954             1,954  
 

Communications and programming services

        359     174     533  
                   

    1,954     359     174     2,487  
                   

Operating costs and expenses:

                         
 

Cost of sales

    1,228             1,228  
 

Operating

    181     239     138     558  
 

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

    147     73     76     296  
 

Depreciation and amortization

    136     12     28     176  
                   

    1,692     324     242     2,258  
                   
     

Operating income (loss)

    262     35     (68 )   229  

Other income (expense):

                         
 

Interest expense

    (122 )   (22 )   (43 )   (187 )
 

Dividend and interest income

    7     6     28     41  
 

Share of earnings (losses) of affiliates, net

    23     155     (13 )   165  
 

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

    (1 )   (77 )   41     (37 )
 

Losses on dispositions, net

        (1 )       (1 )
 

Other, net

                 
                   

    (93 )   61     13     (19 )
                   
   

Earnings (loss) before income taxes

    169     96     (55 )   210  

Income tax benefit (expense) (note 6)

   
(67

)
 
(33

)
 
24
   
(76

)
                   
   

Net earnings (loss)

    102     63     (31 )   134  

Less net earnings (loss) attributable to the noncontrolling interests

    10         (1 )   9  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 92     63     (30 )   125  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    (15 )       1     (14 )
 

Unrealized holding losses arising during the period

    (74 )   1     (2 )   (75 )
 

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

                 
 

Share of other comprehensive earnings (loss) of equity affiliates

    1     (2 )         (1 )
 

Other

    47             47  
                   
       

Other comprehensive loss

    (41 )   (1 )   (1 )   (43 )
                   
         

Comprehensive earnings (loss)

    61     62     (32 )   91  

Less comprehensive earnings (loss) attributable to the noncontrolling interests

    3         (1 )   2  
                   

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 58     62     (31 )   89  
                   

7


STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS INFORMATION
Six months ended June 30, 2009
(unaudited)

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

Revenue:

                         
 

Net retail sales

  $ 3,767             3,767  
 

Communications and programming services

        736     324     1,060  
                   

    3,767     736     324     4,827  
                   

Operating costs and expenses:

                         
 

Cost of sales

    2,391             2,391  
 

Operating

    347     417     235     999  
 

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

    297     138     119     554  
 

Depreciation and amortization

    282     20     42     344  
                   

    3,317     575     396     4,288  
                   
     

Operating income (loss)

    450     161     (72 )   539  

Other income (expense):

                         
 

Interest expense

    (206 )   (36 )   (73 )   (315 )
 

Dividend and interest income

    6     1     67     74  
 

Intergroup interest income (expense)

    (2 )   1     1      
 

Share of earnings (losses) of affiliates, net

    (83 )   192     (4 )   105  
 

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

    (47 )   (74 )   40     (81 )
 

Gains (losses) on dispositions, net

    (3 )   54     113     164  
 

Other, net

    27     (37 )   (2 )   (12 )
                   

    (308 )   101     142     (65 )
                   
   

Earnings before income taxes

    142     262     70     474  

Income tax expense (note 6)

   
(54

)
 
(32

)
 
(29

)
 
(115

)
                   
   

Net earnings

    88     230     41     359  

Less net earnings attributable to the noncontrolling interests

    17             17  
                   

Net earnings attributable to Liberty Media Corporation shareholders

  $ 71     230     41     342  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    (20 )       1     (19 )
 

Unrealized holding gains arising during the period

    8         13     21  
 

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

    1     (1 )        
 

Share of other comprehensive loss of equity affiliates

    (5 )   (5 )       (10 )
 

Other

    37             37  
                   
       

Other comprehensive earnings (loss)

    21     (6 )   14     29  
                   
         

Comprehensive earnings

    109     224     55     388  

Less comprehensive earnings attributable to the noncontrolling interests

   
7
   
   
   
7
 
                   

Comprehensive earnings attributable to Liberty Media Corporation shareholders

  $ 102     224     55     381  
                   

8


STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS INFORMATION
Six months ended June 30, 2008
(unaudited)

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

Revenue:

                         
 

Net retail sales

  $ 3,904             3,904  
 

Communications and programming services

        669     265     934  
                   

    3,904     669     265     4,838  
                   

Operating costs and expenses:

                         
 

Cost of sales

    2,466             2,466  
 

Operating

    361     426     212     999  
 

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

    283     122     156     561  
 

Depreciation and amortization

    275     24     54     353  
                   

    3,385     572     422     4,379  
                   
     

Operating income (loss)

    519     97     (157 )   459  

Other income (expense):

                         
 

Interest expense

    (243 )   (29 )   (81 )   (353 )
 

Dividend and interest income

    13     9     78     100  
 

Share of earnings (losses) of affiliates, net

    35     198     (23 )   210  
 

Realized and unrealized losses on financial instruments, net

    (38 )   (82 )   (202 )   (322 )
 

Gains on dispositions, net

        3,666     15     3,681  
 

Other, net

    1         (3 )   (2 )
                   

    (232 )   3,762     (216 )   3,314  
                   
   

Earnings (loss) before income taxes

    287     3,859     (373 )   3,773  

Income tax benefit (expense) (note 6)

   
(53

)
 
1,707
   
176
   
1,830
 
                   
   

Net earnings (loss)

    234     5,566     (197 )   5,603  

Less net earnings attributable to the noncontrolling interests

    17         4     21  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 217     5,566     (201 )   5,582  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    82         (2 )   80  
 

Unrealized holding losses arising during the period

    (405 )   (312 )   (2 )   (719 )
 

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

        (2,273 )       (2,273 )
 

Share of other comprehensive earnings (loss) of equity affiliates

    1     (3 )         (2 )
 

Other

    (1 )           (1 )
                   
       

Other comprehensive loss

    (323 )   (2,588 )   (4 )   (2,915 )
                   
         

Comprehensive earnings (loss)

    (89 )   2,978     (201 )   2,688  

Less comprehensive earnings attributable to the noncontrolling interests

   
22
   
   
4
   
26
 
                   

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders

  $ (111 )   2,978     (205 )   2,662  
                   

9


STATEMENT OF CASH FLOWS INFORMATION
Six months ended June 30, 2009
(unaudited)

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

Cash flows from operating activities:

                         
 

Net earnings

  $ 88     230     41     359  
 

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

                         
   

Depreciation and amortization

    282     20     42     344  
   

Stock-based compensation

    21     40     2     63  
   

Cash payments for stock based compensation

    (9 )   (2 )       (11 )
   

Noncash interest expense

    39     35         74  
   

Share of losses (earnings) of affiliates, net

    83     (192 )   4     (105 )
   

Cash receipts for return on equity investments

        28         28  
   

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

    47     74     (40 )   81  
   

Losses (gains) on disposition of assets, net

    3     (54 )   (113 )   (164 )
   

Intergroup tax allocation

    97     57     (154 )    
   

Intergroup tax payments

    (138 )   (117 )   255      
   

Other intergroup cash transfers, net

    8     (4 )   (4 )    
   

Deferred income tax expense (benefit)

    (96 )   (27 )   59     (64 )
   

Other noncash charges (credits), net

    (22 )   38     35     51  
   

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

                         
     

Current assets

    350     (36 )   34     348  
     

Payables and other current liabilities

    (234 )   12     64     (158 )
                   

Net cash provided by operating activities

    519     102     225     846  
                   

Cash flows from investing activities:

                         
 

Cash proceeds from dispositions

    72     65     346     483  
 

Proceeds from settlement of financial instruments

        21     40     61  
 

Cash paid for acquisitions, net of cash acquired

    (2 )       (1 )   (3 )
 

Investments in and loans to cost and equity investees

    (23 )   (90 )   (586 )   (699 )
 

Capital expenditures

    (84 )   (6 )   (7 )   (97 )
 

Net sales of short term investments

            59     59  
 

Net decrease (increase) in restricted cash

    (13 )   1     36     24  
 

Other investing activities, net

    1     (21 )   (3 )   (23 )
                   

Net cash used by investing activities

    (49 )   (30 )   (116 )   (195 )
                   

Cash flows from financing activities:

                         
 

Borrowings of debt

    15         1,964     1,979  
 

Intergroup debt borrowings

    502     (251 )   (251 )    
 

Repayments of debt

    (760 )   (2 )   (973 )   (1,735 )
 

Repurchases of Liberty common stock

            (3 )   (3 )
 

Other financing activities, net

    (97 )       31     (66 )
                   

Net cash provided (used) by financing activities

    (340 )   (253 )   768     175  
                   

Effect of foreign currency rates on cash

    (16 )   (8 )       (24 )
                   
 

Net increase (decrease) in cash and cash equivalents

    114     (189 )   877     802  
 

Cash and cash equivalents at beginning of period

    832     807     1,496     3,135  
                   
 

Cash and cash equivalents at end period

  $ 946     618     2,373     3,937  
                   

10


STATEMENT OF CASH FLOWS INFORMATION
Six months ended June 30, 2008
(unaudited)

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

Cash flows from operating activities:

                         
 

Net earnings (loss)

  $ 234     5,566     (197 )   5,603  
 

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

                         
   

Depreciation and amortization

    275     24     54     353  
   

Stock-based compensation

    17     22     4     43  
   

Cash payments for stock-based compensation

    (9 )   (10 )       (19 )
   

Share of losses (earnings) of affiliates, net

    (35 )   (198 )   23     (210 )
   

Realized and unrealized losses on financial instruments, net

    38     82     202     322  
   

Gains on disposition of assets, net

        (3,666 )   (15 )   (3,681 )
   

Intergroup tax allocation

    109     31     (140 )    
   

Intergroup tax payments

    (118 )   (49 )   167      
   

Other intergroup cash transfers, net

    (63 )   3     60      
   

Deferred income tax benefit

    (109 )   (1,739 )   (253 )   (2,101 )
   

Other noncash charges, net

    3     16     19     38  
   

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

                         
     

Current assets

    170     (58 )   (138 )   (26 )
     

Payables and other current liabilities

    (247 )   13     112     (122 )
                   

Net cash provided (used) by operating activities

    265     37     (102 )   200  
                   

Cash flows from investing activities:

                         
 

Cash proceeds from dispositions

        8     16     24  
 

Net proceeds from settlement of financial instruments

            12     12  
 

Cash paid for acquisitions, net of cash acquired

    (40 )       (6 )   (46 )
 

Cash received in exchange transactions

        465         465  
 

Capital expended for property and equipment

    (67 )   (3 )   (22 )   (92 )
 

Net sales of short term investments

            67     67  
 

Investments in and loans to cost and equity investees

    (340 )   (1,977 )   (200 )   (2,517 )
 

Net decrease in restricted cash

            340     340  
 

Other investing activities, net

    (2 )   (12 )   (10 )   (24 )
                   

Net cash provided (used) by investing activities

    (449 )   (1,519 )   197     (1,771 )
                   

Cash flows from financing activities:

                         
 

Borrowings of debt

    618     1,977     1,189     3,784  
 

Repayments of debt

    (156 )   (2 )   (1,007 )   (1,165 )
 

Repurchases of Liberty common stock

    (75 )       (177 )   (252 )
 

Intergroup cash transfers, net

        450     (450 )    
 

Other financing activities, net

    (42 )   (4 )   (22 )   (68 )
                   

Net cash provided (used) by financing activities

    345     2,421     (467 )   2,299  
                   

Effect of foreign currency rates on cash

    13             13  
                   
 

Net increase (decrease) in cash and cash equivalents

    174     939     (372 )   741  
 

Cash and cash equivalents at beginning of period

    557     90     2,488     3,135  
                   
 

Cash and cash equivalents at end period

  $ 731   $ 1,029     2,116     3,876  
                   

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:
 
  June 30,
2009
  December 31,
2008
 
 
  amounts in millions
 

Capital Group

             
 

Time Warner Inc. ("Time Warner")(a)

  $ 862     1,033  
 

Time Warner Cable Inc.(a)

    272      
 

Sprint Nextel Corporation(a)

    410     160  
 

Motorola, Inc.(a)

    344     328  
 

Viacom, Inc. 

    172     145  
 

Embarq Corporation(a)

    195     157  
 

Other available-for-sale equity securities(a)

    62     40  
 

Other available-for-sale debt securities

    481     224  
 

Other cost investments and related receivables

    32     31  
           
   

Total attributed Capital Group

    2,830     2,118  
           

Interactive Group

             
 

IAC/InterActiveCorp

    578     638  
 

Other

    140     101  
           
   

Total attributed Interactive Group

    718     739  
           

Entertainment Group

             
 

Other

    2     2  
           
   

Total attributed Entertainment Group

    2     2  
           
     

Consolidated Liberty

  $ 3,550     2,859  
           

13



Notes to Attributed Financial Information (Continued)

(unaudited)

(3)
The following table presents information regarding certain equity method investments:
 
  June 30, 2009   Share of earnings six months ended June 30,  
 
  Percentage
ownership
  Carrying
value
  Market
value
 
 
  2009   2008  
 
  dollar amounts in millions
 

Interactive Group

                               
 

Expedia

    24 % $ 575   $ 1,046   $ 19   $ 35  

Entertainment Group

                               
 

DIRECTV

    55 % $ 13,225   $ 13,559   $ 179   $ 190  

Capital Group

                               
 

Sirius

    40 % $ 344   $ (a ) $ 4   $  

14



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:
 
  June 30, 2009  
 
  Outstanding
principal
  Carrying
value
 
 
  amounts in millions
 

Capital Group

             
 

3.125% Exchangeable Senior Debentures due 2023

  $ 1,147     966  
 

4% Exchangeable Senior Debentures due 2029

    469     171  
 

3.75% Exchangeable Senior Debentures due 2030

    460     163  
 

3.5% Exchangeable Senior Debentures due 2031

    495     222  
 

Liberty bank facility

    750     750  
 

Liberty derivative loan

    1,930     1,930  
 

Subsidiary debt

    102     102  
           
   

Total Capital Group debt

    5,353     4,304  
           

Interactive Group

             
 

7.875% Senior Notes due 2009

    104     104  
 

7.75% Senior Notes due 2009

    13     13  
 

5.7% Senior Notes due 2013

    803     801  
 

8.5% Senior Debentures due 2029

    287     285  
 

8.25% Senior Debentures due 2030

    504     501  
 

3.25% Exchangeable Senior Debentures due 2031

    541     217  
 

QVC bank credit facilities

    4,477     4,477  
 

Other subsidiary debt

    68     68  
           
   

Total Interactive Group debt

    6,797     6,466  
           

Entertainment Group

             
 

DIRECTV Collar Loan

    2,016     2,016  
 

Subsidiary debt

    50     50  
           
   

Total Entertainment Group debt

    2,066     2,066  
           

Total debt

  $ 14,216     12,836  
           
(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 allocated from the Capital Group to the Interactive Group and the Entertainment Group, including stock-based compensation, are as follows:
 
  Six months ended June 30,  
 
  2009   2008  
 
  amounts in millions
 

Interactive Group

  $ 12     10  

Entertainment Group

  $ 40     6  

15



Notes to Attributed Financial Information (Continued)

(unaudited)

(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.

16




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SUMMARY ATTRIBUTED FINANCIAL DATA
SUMMARY ATTRIBUTED FINANCIAL DATA
SUMMARY ATTRIBUTED FINANCIAL DATA
Notes to Attributed Financial Information (unaudited)