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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 nine months ended September 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 nine months ended September 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

 
  September 30,
2009
  December 31,
2008
 
 
  amounts in millions
 

Summary balance sheet data:

             

Current assets

  $ 3,047     3,282  

Cost investments

  $ 903     739  

Equity investments

  $ 860     901  

Total assets

  $ 17,217     17,487  

Long-term debt, including current portion

  $ 6,295     7,131  

Long-term deferred income tax liabilities

  $ 1,952     1,999  

Attributed net assets

  $ 6,589     6,303  

 

 
  Three months ended
September 30,
  Nine months ended
September 30,
 
 
  2009   2008   2009   2008  
 
  amounts in millions
 

Summary operations data:

                         

Revenue

  $ 1,827     1,798     5,594     5,702  

Cost of sales

    (1,182 )   (1,179 )   (3,573 )   (3,645 )

Operating expenses

    (172 )   (173 )   (519 )   (534 )

Selling, general and administrative expenses(1)

    (140 )   (142 )   (437 )   (425 )

Depreciation and amortization

    (139 )   (143 )   (421 )   (418 )
                   
 

Operating income

    194     161     644     680  

Interest expense

    (147 )   (122 )   (353 )   (365 )

Other than temporary declines in fair value of investments

        (440 )       (440 )

Other expense, net

    (57 )   (38 )   (159 )   (27 )

Income tax benefit (expense)

    13     164     (41 )   111  
                   
 

Net earnings (loss)

    3     (275 )   91     (41 )

Less net earnings attributable to the noncontrolling interests

    9     8     26     25  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ (6 )   (283 )   65     (66 )
                   

(1)
Includes stock-based compensation of $12 million and $8 million for the three months ended September 30, 2009 and 2008, respectively; and $33 million and $25 million for the nine months ended September 30, 2009 and 2008, respectively.

2



SUMMARY ATTRIBUTED FINANCIAL DATA

Entertainment Group

 
  September 30,
2009
  December 31,
2008
 
 
  amounts in millions
 

Summary balance sheet data:

             

Current assets

  $ 1,416     1,631  

Equity investments

  $ 13,840     13,366  

Total assets

  $ 16,314     16,322  

Long-term debt, including current portion

  $ 1,937     2,033  

Long-term deferred income tax liabilities

  $ 1,737     1,735  

Attributed net assets

  $ 12,507     12,180  

 

 
  Three months
ended
September 30,
  Nine months
ended
September 30,
 
 
  2009   2008   2009   2008  
 
  amounts in millions
 

Summary operations data:

                         

Revenue

  $ 369     362     1,105     1,031  

Operating expenses

    (234 )   (238 )   (651 )   (664 )

Selling, general and administrative expenses(1)

    (69 )   (65 )   (207 )   (187 )

Depreciation and amortization

    (7 )   (12 )   (27 )   (36 )
                   
 

Operating income

    59     47     220     144  

Gains (losses) on dispositions, net

        (2 )   (54 )   3,664  

Share of earnings of affiliates, net

    124     116     316     314  

Other income (expense), net

    (180 )   82     (217 )   (20 )

Income tax benefit (expense)

    (1 )   (96 )   (33 )   1,611  
                   
 

Net earnings

  $ 2     147     232     5,713  
                   

(1)
Includes stock-based compensation of $20 million and $15 million for the three months ended September 30, 2009 and 2008, respectively, and $60 million and $37 million for the nine months ended September 30, 2009 and 2008, respectively.

3



SUMMARY ATTRIBUTED FINANCIAL DATA

Capital Group

 
  September 30, 2009   December 31, 2008  
 
  amounts in millions
 

Summary balance sheet data:

             

Current assets

  $ 4,134     2,973  

Cost investments

  $ 3,283     2,118  

Total assets

  $ 9,548     8,361  

Long-term debt, including current portion

  $ 3,852     3,063  

Long-term deferred income tax liabilities

  $ 560     1,166  

Attributed net assets

  $ 1,069     1,121  

 

 
  Three months
ended
September 30,
  Nine months
ended
September 30,
 
 
  2009   2008   2009   2008  
 
  amounts in millions
 

Summary operations data:

                         

Revenue

  $ 171     218     495     483  

Operating expenses

    (146 )   (171 )   (381 )   (383 )

Selling, general and administrative expenses(1)

    (99 )   (140 )   (218 )   (296 )

Depreciation and amortization

    (20 )   (24 )   (62 )   (78 )

Impairment of long-lived assets

        (34 )       (34 )
                   
 

Operating loss

    (94 )   (151 )   (166 )   (308 )

Interest expense

    (29 )   (43 )   (102 )   (124 )

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

    (98 )   14     (58 )   (188 )

Gains (losses) on dispositions, net

    (17 )       96     15  

Other income, net

    20     29     82     81  

Income tax benefit

    86     39     57     215  
                   
 

Net loss

    (132 )   (112 )   (91 )   (309 )

Less net earnings attributable to the noncontrolling interests

                4  
                   

Net loss attributable to Liberty Media Corporation shareholders

  $ (132 )   (112 )   (91 )   (313 )
                   

(1)
Includes stock-based compensation of $3 million and $1 million for the three months ended September 30, 2009 and 2008, respectively; and $5 million for each of the nine month periods ended September 30, 2009 and 2008.

4


BALANCE SHEET INFORMATION
September 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

  $ 816     577     2,923         4,316  
 

Trade and other receivables, net

    912     247     74         1,233  
 

Inventory, net

    1,106                 1,106  
 

Program rights

        518             518  
 

Financial instruments

            1,036         1,036  
 

Current deferred tax assets

    135     68         (203 )    
 

Other current assets

    78     6     101         185  
                       
   

Total current assets

    3,047     1,416     4,134     (203 )   8,394  
                       

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

    903     2     3,283         4,188  

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

    860     13,840     278         14,978  

Property and equipment, net

    1,013     113     137         1,263  

Goodwill

    5,900     368     201         6,469  

Trademarks

    2,492     2     14         2,508  

Intangible assets subject to amortization, net

    2,923     121     196         3,240  

Other assets, at cost, net of accumulated amortization

    79     452     1,305         1,836  
                       
   

Total assets

  $ 17,217     16,314     9,548     (203 )   42,876  
                       

Liabilities and Equity

                               

Current liabilities:

                               
 

Accounts payable

  $ 584     8     28         620  
 

Accrued interest

    44         16         60  
 

Other accrued liabilities

    535     207     147         889  
 

Intergroup payable (receivable)

    (24 )   (103 )   127          
 

Intergroup notes (note 1)

    510     (255 )   (255 )        
 

Financial instruments

    117     25     865         1,007  
 

Current portion of debt (note 4)

    725     752     1,538         3,015  
 

Accrued stock compensation

    20     205     7         232  
 

Current deferred tax liabilities

            1,618     (203 )   1,415  
 

Other current liabilities

    112     5     31         148  
                       
   

Total current liabilities

    2,623     844     4,122     (203 )   7,386  
                       

Long-term debt (note 4)

    5,570     1,185     2,314         9,069  

Long-term financial instruments

    169     32     9         210  

Deferred income tax liabilities (note 6)

    1,952     1,737     560         4,249  

Other liabilities

    196     9     1,473         1,678  
                       
   

Total liabilities

    10,510     3,807     8,478     (203 )   22,592  

Equity/Attributed net assets

    6,589     12,507     1,069         20,165  

Noncontrolling interests in equity of subsidiaries

    118         1         119  
                       
   

Total liabilities and equity

  $ 17,217     16,314     9,548     (203 )   42,876  
                       

5


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

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

Revenue:

                         
 

Net retail sales

  $ 1,827             1,827  
 

Communications and programming services

        369     171     540  
                   

    1,827     369     171     2,367  
                   

Operating costs and expenses:

                         
 

Cost of sales

    1,182             1,182  
 

Operating

    172     234     146     552  
 

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

    140     69     99     308  
 

Depreciation and amortization

    139     7     20     166  
                   

    1,633     310     265     2,208  
                   
     

Operating income (loss)

    194     59     (94 )   159  

Other income (expense):

                         
 

Interest expense

    (147 )   (18 )   (29 )   (194 )
 

Dividend and interest income

    1     1     23     25  
 

Intergroup interest income (expense)

    (8 )   4     4      
 

Share of earnings (losses) of affiliates, net

    36     124     (22 )   138  
 

Realized and unrealized losses on financial instruments, net

    (67 )   (161 )   (98 )   (326 )
 

Gains (losses) on dispositions, net

    3         (17 )   (14 )
 

Other, net

    (22 )   (6 )   15     (13 )
                   

    (204 )   (56 )   (124 )   (384 )
                   
   

Earnings (loss) before income taxes

    (10 )   3     (218 )   (225 )

Income tax benefit (expense) (note 6)

   
13
   
(1

)
 
86
   
98
 
                   
   

Net earnings (loss)

    3     2     (132 )   (127 )

Less net earnings attributable to the noncontrolling interests

    9             9  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ (6 )   2     (132 )   (136 )
                   

Net earnings (loss)

  $ 3     2     (132 )   (127 )
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    41         1     42  
 

Unrealized holding gains arising during the period

    143         20     163  
 

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

    (1 )       (1 )   (2 )
 

Share of other comprehensive earnings of equity affiliates

        21         21  
 

Other

    (3 )           (3 )
                   
       

Other comprehensive earnings

    180     21     20     221  
                   
         

Comprehensive earnings (loss)

    183     23     (112 )   94  

Less comprehensive earnings attributable to the noncontrolling interests

    17             17  
                   

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 166     23     (112 )   77  
                   

6


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

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

Revenue:

                         
 

Net retail sales

  $ 1,798             1,798  
 

Communications and programming services

        362     218     580  
                   

    1,798     362     218     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     (151 )   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

    (439 )   243     (151 )   (347 )

Income tax benefit (expense) (note 6)

   
164
   
(96

)
 
39
   
107
 
                   
   

Net earnings (loss)

    (275 )   147     (112 )   (240 )

Less net earnings attributable to the noncontrolling interests

    8             8  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ (283 )   147     (112 )   (248 )
                   

Net earning (loss)

  $ (275 )   147     (112 )   (240 )
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    (114 )       (1 )   (115 )
 

Unrealized holding losses arising during the period

    (42 )           (42 )
 

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

    273             273  
 

Share of other comprehensive loss of equity affiliates

    (2 )   (2 )       (4 )
                   
       

Other comprehensive earnings (loss)

    115     (2 )   (1 )   112  
                   
         

Comprehensive earnings (loss)

    (160 )   145     (113 )   (128 )

Less comprehensive earnings attributable to Liberty Media Corporation shareholder

    8             8  
                   

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders

  $ (168 )   145     (113 )   (136 )
                   

7


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

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

Revenue:

                         
 

Net retail sales

  $ 5,594             5,594  
 

Communications and programming services

        1,105     495     1,600  
                   

    5,594     1,105     495     7,194  
                   

Operating costs and expenses:

                         
 

Cost of sales

    3,573             3,573  
 

Operating

    519     651     381     1,551  
 

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

    437     207     218     862  
 

Depreciation and amortization

    421     27     62     510  
                   

    4,950     885     661     6,496  
                   
     

Operating income (loss)

    644     220     (166 )   698  

Other income (expense):

                         
 

Interest expense

    (353 )   (54 )   (102 )   (509 )
 

Dividend and interest income

    7     2     90     99  
 

Intergroup interest income (expense)

    (10 )   5     5      
 

Share of earnings (losses) of affiliates, net

    (47 )   316     (26 )   243  
 

Realized and unrealized losses on financial instruments, net

    (114 )   (235 )   (58 )   (407 )
 

Gains on dispositions, net

        54     96     150  
 

Other, net

    5     (43 )   13     (25 )
                   

    (512 )   45     18     (449 )
                   
   

Earnings (loss) before income taxes

    132     265     (148 )   249  

Income tax benefit (expense) (note 6)

   
(41

)
 
(33

)
 
57
   
(17

)
                   
   

Net earnings (loss)

    91     232     (91 )   232  

Less net earnings attributable to the noncontrolling interests

    26             26  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 65     232     (91 )   206  
                   

Net earnings (loss)

  $ 91     232     (91 )   232  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    21         2     23  
 

Unrealized holding gains arising during the period

    151         33     184  
 

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

        (1 )   (1 )   (2 )
 

Share of other comprehensive earnings (loss) of equity affiliates

    (5 )   16         11  
 

Other

    34             34  
                   
       

Other comprehensive earnings

    201     15     34     250  
                   
         

Comprehensive earnings (loss)

    292     247     (57 )   482  

Less comprehensive earnings attributable to the noncontrolling interests

   
24
   
   
   
24
 
                   

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 268     247     (57 )   458  
                   

8


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

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

Revenue:

                         
 

Net retail sales

  $ 5,702             5,702  
 

Communications and programming services

        1,031     483     1,514  
                   

    5,702     1,031     483     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     (308 )   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) before income taxes

    (152 )   4,102     (524 )   3,426  

Income tax benefit (note 6)

   
111
   
1,611
   
215
   
1,937
 
                   
   

Net earnings (loss)

    (41 )   5,713     (309 )   5,363  

Less net earnings attributable to the noncontrolling interests

    25         4     29  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ (66 )   5,713     (313 )   5,334  
                   

Net earnings (loss)

  $ (41 )   5,713     (309 )   5,363  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    (32 )       (3 )   (35 )
 

Unrealized holding losses arising during the period

    (447 )   (312 )   (2 )   (761 )
 

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

    273     (2,273 )       (2,000 )
 

Share of other comprehensive loss of equity affiliates

    (1 )   (5 )       (6 )
 

Other

    (1 )           (1 )
                   
       

Other comprehensive loss

    (208 )   (2,590 )   (5 )   (2,803 )
                   
         

Comprehensive earnings (loss)

    (249 )   3,123     (314 )   2,560  

Less comprehensive earnings attributable to the noncontrolling interests

   
30
   
   
4
   
34
 
                   

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders

  $ (279 )   3,123     (318 )   2,526  
                   

9


STATEMENT OF CASH FLOWS INFORMATION
Nine months ended September 30, 2009
(unaudited)

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

Cash flows from operating activities:

                         
 

Net earnings (loss)

  $ 91     232     (91 )   232  
 

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

                         
   

Depreciation and amortization

    421     27     62     510  
   

Stock-based compensation

    33     60     5     98  
   

Cash payments for stock based compensation

    (9 )   (2 )       (11 )
   

Noncash interest expense

    63     52         115  
   

Share of losses (earnings) of affiliates, net

    47     (316 )   26     (243 )
   

Cash receipts from return on equity investments

        28         28  
   

Realized and unrealized losses on financial instruments, net

    114     235     58     407  
   

Gains on disposition of assets, net

        (54 )   (96 )   (150 )
   

Intergroup tax allocation

    116     80     (196 )    
   

Intergroup tax payments

    (168 )   (121 )   289      
   

Other intergroup cash transfers, net

        (53 )   53      
   

Deferred income tax benefit

    (162 )   (49 )   (1 )   (212 )
   

Other noncash charges (credits), net

    (7 )   45     41     79  
   

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

                         
     

Current and other assets

    183     (94 )   35     124  
     

Payables and other current liabilities

    (23 )   62     54     93  
                   

Net cash provided by operating activities

    699     132     239     1,070  
                   

Cash flows from investing activities:

                         
 

Cash proceeds from dispositions

    82     65     206     353  
 

Proceeds from settlement of financial instruments

    7     21     1,067     1,095  
 

Cash paid for acquisitions, net of cash acquired

    (2 )   (1 )   (1 )   (4 )
 

Investments in and loans to cost and equity investees

    (23 )   (90 )   (705 )   (818 )
 

Repayment of loan by equity investee

            409     409  
 

Capital expended for property and equipment

    (132 )   (10 )   (10 )   (152 )
 

Net sales of short term investments

            58     58  
 

Net decrease (increase) in restricted cash

    (13 )   1     75     63  
 

Other investing activities, net

    (11 )   14     (25 )   (22 )
                   

Net cash provided by (used in) investing activities

    (92 )       1,074     982  
                   

Cash flows from financing activities:

                         
 

Borrowings of debt

    1,124         1,970     3,094  
 

Intergroup debt borrowings

    510     (255 )   (255 )    
 

Repayments of debt

    (2,128 )   (148 )   (1,785 )   (4,061 )
 

Repurchases of Liberty common stock

            (3 )   (3 )
 

Other financing activities, net

    (124 )   49     187     112  
                   

Net cash provided by (used in) financing activities

    (618 )   (354 )   114     (858 )
                   

Effect of foreign currency rates on cash

    (5 )   (8 )       (13 )
                   
 

Net increase (decrease) in cash and cash equivalents

    (16 )   (230 )   1,427     1,181  
 

Cash and cash equivalents at beginning of period

    832     807     1,496     3,135  
                   
 

Cash and cash equivalents at end period

  $ 816     577     2,923     4,316  
                   

10


STATEMENT OF CASH FLOWS INFORMATION
Nine months ended September 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)

  $ (41 )   5,713     (309 )   5,363  
 

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 )
   

Noncash interest expense

    2     34     1     37  
   

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  
   

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

    24         53     77  
   

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

                         
     

Current and other assets

    116     (46 )   (154 )   (84 )
     

Payables and other current liabilities

    (214 )   15     50     (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 received in exchange transactions

        465         465  
 

Cash paid for acquisitions, net of cash acquired

    (69 )   (7 )   (1 )   (77 )
 

Investments in and loans to cost and equity investees

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

Capital expended for property and equipment

    (100 )   (6 )   (25 )   (131 )
 

Net sales of short term investments

            79     79  
 

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  
                   

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)

13



Notes to Attributed Financial Information (Continued)

(unaudited)

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

 
  September 30,
2009
  December 31,
2008
 
 
  amounts in millions
 

Capital Group

             
 

Time Warner Inc.(a)

  $ 985     1,033  
 

Time Warner Cable Inc.(a)

    370      
 

Sprint Nextel Corporation(a)

    307     160  
 

Motorola, Inc.(a)

    446     328  
 

Viacom, Inc. 

    213     145  
 

CenturyTel, Inc./Embarq Corporation(a)

    196     157  
 

Other available-for-sale equity securities(a)

    92     40  
 

Other available-for-sale debt securities

    643     224  
 

Other cost investments and related receivables

    31     31  
           
   

Total attributed Capital Group

    3,283     2,118  
           

Interactive Group

             
 

IAC/InterActiveCorp

    717     638  
 

Other

    186     101  
           
   

Total attributed Interactive Group

    903     739  
           

Entertainment Group

             
 

Other

    2     2  
           
   

Total attributed Entertainment Group

    2     2  
           
     

Consolidated Liberty

  $ 4,188     2,859  
           

(a)
Includes shares pledged as collateral for share borrowing arrangements.
(3)
The following table presents information regarding certain equity method investments:

 
   
   
   
  Share of
earnings (losses)
nine months
ended
September 30,
 
 
  September 30, 2009  
 
  Percentage
ownership
  Carrying
value
  Market
value
 
 
  2009   2008  
 
  dollar amounts in millions
 

Interactive Group

                               
 

Expedia

    24 % $ 606   $ 1,658   $ 47   $ 58  

Entertainment Group

                               
 

DIRECTV

    57 % $ 13,382   $ 15,134   $ 304   $ 301  

Capital Group

                               
 

Sirius

    40 % $ 63   $ (a ) $ (14 ) $  

(a)
As of September 30, 2009, the Sirius Preferred Stock had a market value of $1,656 million based on the value of the common stock into which it is convertible.

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:

 
  September 30, 2009  
 
  Outstanding
principal
  Carrying
value
 
 
  amounts in millions
 

Capital Group

             
 

3.125% Exchangeable Senior Debentures due 2023

  $ 1,138     1,104  
 

4% Exchangeable Senior Debentures due 2029

    469     241  
 

3.75% Exchangeable Senior Debentures due 2030

    460     216  
 

3.5% Exchangeable Senior Debentures due 2031

    494     306  
 

Liberty bank facility

    750     750  
 

Liberty derivative loan

    1,155     1,155  
 

Subsidiary debt

    80     80  
           
   

Total attributed Capital Group debt

    4,546     3,852  
           

Interactive Group

             
 

5.7% Senior Notes due 2013

    803     801  
 

8.5% Senior Debentures due 2029

    287     284  
 

8.25% Senior Debentures due 2030

    504     501  
 

3.25% Exchangeable Senior Debentures due 2031

    541     301  
 

QVC 7.5% Senior Secured Notes due 2019

    1,000     983  
 

QVC bank credit facilities

    3,235     3,235  
 

Other subsidiary debt

    190     190  
           
   

Total attributed Interactive Group debt

    6,560     6,295  
           

Entertainment Group

             
 

DIRECTV Collar Loan

    1,888     1,888  
 

Subsidiary debt

    49     49  
           
   

Total attributed Entertainment Group debt

    1,937     1,937  
           

Total debt

  $ 13,043     12,084  
           
(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:

 
  Nine months ended
September 30,
 
 
  2009   2008  
 
  amounts in millions
 

Interactive Group

  $ 18     16  

Entertainment Group

  $ 49     15  

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)