Exhibit 99.1
Unaudited Attributed Financial Information for Tracking Stock Groups
On May 9, 2006, we completed a restructuring and recapitalization pursuant to which we issued two new tracking stocks, one ("Liberty Interactive Stock") intended to reflect the separate performance of our businesses engaged in video and on-line commerce, the second ("Old Liberty Capital Stock") intended to reflect the separate performance of all of our assets and businesses not attributed to the Interactive Group. Each share of our existing Series A and Series B common stock was exchanged for .25 of a share of the same series of Liberty Interactive Stock and .05 of a share of the same series of Liberty Capital Stock.
On March 3, 2008, we completed a reclassification of our Old Liberty Capital Stock, whereby each share of Old Liberty Capital Stock was reclassified into four shares of the same series of Liberty Entertainment Stock and one share of the same series of Liberty Capital Stock. Our Liberty Entertainment Stock was intended to reflect the separate performance of our Entertainment Group, which was comprised of certain of our businesses previously attributed to the Capital Group and which are engaged in video programming, direct-to-home satellite distribution and communications. Our Capital Group is comprised of our assets and businesses not attributed to either the Interactive Group or the Entertainment Group.
On November 19, 2009, we completed the redemption of a portion of the outstanding shares of Liberty Entertainment Stock for all of the outstanding shares of a newly formed, wholly owned subsidiary, Liberty Entertainment, Inc. ("LEI") (the "Redemption"). The Redemption and the resulting separation of LEI from us pursuant to the Redemption are referred to herein as the Split Off.
In connection with the Redemption, we redeemed 90% of the outstanding shares of each series of Liberty Entertainment common stock for 100% of the outstanding shares of the same series of LEI, with cash in lieu of fractional shares. Immediately following the Split-Off, LEI and The DIRECTV Group, Inc. completed the DTV Business Combination and each of LEI and DIRECTV have become wholly owned subsidiaries of a new public holding company named DIRECTV ("Holdings"). We have included the results of operations of LEI, along with the gain recognized on the DTV Business combination, in earnings from discontinued operations in our and the Starz Group's statement of operations.
Subsequent to the Split Off, the Liberty Entertainment group was renamed the Liberty Starz group.
The following tables present our assets, liabilities, revenue, expenses and cash flows as of and for the years ended December 31, 2009, 2008 and 2007. The tables further present our assets, liabilities, revenue, expenses and cash flows that are attributed to the Interactive Group, the Starz Group and the Capital Group, respectively. The financial information should be read in conjunction with our audited financial statements for the years ended December 31, 2009, 2008 and 2007 included in this Annual Report on Form 10-K. The attributed financial information presented in the tables has been prepared assuming the restructuring and the reclassification had been completed as of January 1, 2007 and does not reflect the impacts of the Reattribution described in note 2 to our consolidated financial statements included in this Annual Report on Form 10-K.
Notwithstanding the following attribution of assets, liabilities, revenue, expenses and cash flows to the Interactive Group, the Starz Group and the Capital Group, our tracking stock capital structure does not affect the ownership or the respective legal title to our assets or responsibility for our liabilities. We and our subsidiaries each continue to be responsible for our respective liabilities. Holders of Liberty Interactive Stock, Liberty Starz Stock and Liberty Capital Stock are holders of our common stock and continue to be subject to risks associated with an investment in our company and all of our businesses, assets and liabilities. The issuance of Liberty Interactive Stock, Liberty Starz Stock and Liberty Capital Stock does not affect the rights of our creditors.
1
SUMMARY ATTRIBUTED FINANCIAL DATA
Interactive Group
|
December 31, | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | |||||||
|
amounts in millions |
|||||||||
Summary Balance Sheet Data: |
||||||||||
Current assets |
$ | 3,379 | 3,282 | 2,921 | ||||||
Cost investments |
$ | 734 | 739 | 2,044 | ||||||
Equity investments |
$ | 895 | 901 | 1,311 | ||||||
Total assets |
$ | 17,343 | 17,487 | 19,326 | ||||||
Long-term debt, including current portion |
$ | 6,073 | 7,131 | 7,177 | ||||||
Deferred income tax liabilities, noncurrent |
$ | 1,939 | 1,999 | 2,670 | ||||||
Attributed net assts |
$ | 6,794 | 6,303 | 7,530 |
|
Years ended December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | |||||||||
|
amounts in millions |
|||||||||||
Summary Operations Data: |
||||||||||||
Revenue |
$ | 8,305 | 8,079 | 7,802 | ||||||||
Cost of goods sold |
(5,332 | ) | (5,224 | ) | (4,925 | ) | ||||||
Operating expenses |
(752 | ) | (748 | ) | (712 | ) | ||||||
Selling, general and administrative expenses(1) |
(614 | ) | (584 | ) | (516 | ) | ||||||
Depreciation and amortization |
(566 | ) | (561 | ) | (536 | ) | ||||||
Impairment of long-lived assets |
| (56 | ) | | ||||||||
Operating income |
1,041 | 906 | 1,113 | |||||||||
Interest expense |
(496 |
) |
(473 |
) |
(465 |
) |
||||||
Share of earnings (losses) of affiliates |
(14 | ) | (1,192 | ) | 77 | |||||||
Other than temporary declines in fair value of investments |
| (440 | ) | | ||||||||
Other income (expense), net |
(80 | ) | (39 | ) | 51 | |||||||
Income tax benefit (expense) |
(154 | ) | 493 | (306 | ) | |||||||
Net earnings (loss) |
297 | (745 | ) | 470 | ||||||||
Less net earnings attributable to the noncontrolling interests |
39 | 36 | 29 | |||||||||
Net earnings (loss) attributable to Liberty Media Corporation stockholders |
$ | 258 | (781 | ) | 441 | |||||||
2
SUMMARY ATTRIBUTED FINANCIAL DATA
Starz Group
|
December 31, | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | |||||||
|
amounts in millions |
|||||||||
Summary Balance Sheet Data: |
||||||||||
Current assets |
$ | 1,544 | 1,476 | 793 | ||||||
Assets of discontinued operations |
$ | | 14,211 | 11,050 | ||||||
Total assets |
$ | 2,198 | 16,352 | 13,808 | ||||||
Long-term debt, including current portion |
$ | 48 | 52 | 473 | ||||||
Attributed net assts |
$ | 2,040 | 12,180 | 9,457 |
|
Years ended December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | |||||||||
|
amounts in millions |
|||||||||||
Summary Operations Data: |
||||||||||||
Revenue |
$ | 1,204 | 1,124 | 1,091 | ||||||||
Operating expenses |
(685 | ) | (682 | ) | (704 | ) | ||||||
Selling, general and administrative expenses(1) |
(221 | ) | (167 | ) | (170 | ) | ||||||
Depreciation and amortization |
(21 | ) | (26 | ) | (25 | ) | ||||||
Impairment of long-lived assets |
(5 | ) | (1,262 | ) | (41 | ) | ||||||
Operating income (loss) |
272 | (1,013 | ) | 151 | ||||||||
Interest expense |
(2 |
) |
(22 |
) |
(25 |
) |
||||||
Share of losses of affiliates |
(10 | ) | (7 | ) | | |||||||
Realized and unrealized gains on financial instruments |
8 | 272 | 14 | |||||||||
Other income, net |
31 | 1 | 3 | |||||||||
Income tax expense |
(86 | ) | (191 | ) | (69 | ) | ||||||
Earnings (loss) from continuing operations |
213 | (960 | ) | 74 | ||||||||
Earnings from discontinued operations |
5,864 | 5,812 | 41 | |||||||||
Net earnings |
6,077 | 4,852 | 115 | |||||||||
Less net loss attributable to the noncontrolling interests |
| | (21 | ) | ||||||||
Net earnings attributable to Liberty Media Corporation stockholders |
$ | 6,077 | 4,852 | 136 | ||||||||
3
SUMMARY ATTRIBUTED FINANCIAL DATA
Capital Group
|
December 31, | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | |||||||
|
amounts in millions |
|||||||||
Summary Balance Sheet Data: |
||||||||||
Current assets |
$ | 4,087 | 2,973 | 2,759 | ||||||
Cost investments |
$ | 3,355 | 2,118 | 4,873 | ||||||
Total assets |
$ | 9,373 | 8,361 | 12,679 | ||||||
Long-term debt, including current portion |
$ | 3,653 | 3,063 | 4,065 | ||||||
Deferred income tax liabilities, noncurrent |
$ | 730 | 1,166 | 2,267 | ||||||
Attributed net assets |
$ | 1,275 | 1,121 | 2,599 |
|
Years ended December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | |||||||||
|
amounts in millions |
|||||||||||
Summary Operations Data: |
||||||||||||
Revenue |
$ | 649 | 614 | 485 | ||||||||
Operating expenses |
(486 | ) | (515 | ) | (480 | ) | ||||||
Selling, general and administrative expenses(1) |
(343 | ) | (398 | ) | (227 | ) | ||||||
Depreciation and amortization |
(79 | ) | (101 | ) | (102 | ) | ||||||
Impairment of long-lived assets |
(4 | ) | (251 | ) | (182 | ) | ||||||
Operating loss |
(263 | ) | (651 | ) | (506 | ) | ||||||
Interest expense |
(130 |
) |
(172 |
) |
(151 |
) |
||||||
Realized and unrealized gains (losses) on derivative instruments, net |
(42 | ) | (292 | ) | 1,261 | |||||||
Gain on dispositions, net |
215 | 16 | 635 | |||||||||
Other income, net |
91 | 75 | 114 | |||||||||
Income tax benefit |
256 | 440 | 62 | |||||||||
Earnings (loss) from continuing operations |
127 | (584 | ) | 1,415 | ||||||||
Earnings from discontinued operations, net of taxes |
| | 149 | |||||||||
Net earnings (loss) |
127 | (584 | ) | 1,564 | ||||||||
Less net earnings attributable to the noncontrolling interests |
| 8 | 27 | |||||||||
Net earnings (loss) attributable to Liberty Media Corporation stockholders |
$ | 127 | (592 | ) | 1,537 | |||||||
4
BALANCE SHEET INFORMATION
December 31, 2009
(unaudited)
|
Attributed (note 1) | |
|
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Interactive Group |
Starz Group |
Capital Group |
Inter-group eliminations |
Consolidated Liberty |
|||||||||||||
|
amounts in millions |
|||||||||||||||||
Assets |
||||||||||||||||||
Current assets: |
||||||||||||||||||
Cash and cash equivalents |
$ | 884 | 794 | 3,157 | | 4,835 | ||||||||||||
Trade and other receivables, net |
1,250 | 191 | 77 | | 1,518 | |||||||||||||
Inventory, net |
985 | | | | 985 | |||||||||||||
Program rights |
| 469 | | | 469 | |||||||||||||
Financial instruments |
| | 752 | | 752 | |||||||||||||
Current deferred tax assets |
195 | 88 | | (283 | ) | | ||||||||||||
Other current assets |
65 | 2 | 101 | | 168 | |||||||||||||
Total current assets |
3,379 | 1,544 | 4,087 | (283 | ) | 8,727 | ||||||||||||
Investments in available-for-sale securities and other cost investments (note 2) |
734 | 31 | 3,355 | | 4,120 | |||||||||||||
Investments in affiliates, accounted for using the equity method (note 3) |
895 | | 135 | | 1,030 | |||||||||||||
Property and equipment, net |
1,030 | 109 | 166 | | 1,305 | |||||||||||||
Goodwill |
5,891 | 133 | 201 | | 6,225 | |||||||||||||
Trademarks |
2,492 | 2 | 14 | | 2,508 | |||||||||||||
Intangible assets subject to amortization, net |
2,840 | 2 | 185 | | 3,027 | |||||||||||||
Other assets, at cost, net of accumulated amortization |
82 | 377 | 1,230 | | 1,689 | |||||||||||||
Total assets |
$ | 17,343 | 2,198 | 9,373 | (283 | ) | 28,631 | |||||||||||
Liabilities and Equity |
||||||||||||||||||
Current liabilities: |
||||||||||||||||||
Accounts payable |
$ | 578 | 7 | 13 | | 598 | ||||||||||||
Accrued liabilities |
768 | 116 | 153 | | 1,037 | |||||||||||||
Intergroup payable (receivable) |
116 | (80 | ) | (36 | ) | | | |||||||||||
Intergroup notes (note 1) |
316 | (158 | ) | (158 | ) | | | |||||||||||
Financial instruments |
143 | | 859 | | 1,002 | |||||||||||||
Current portion of debt (note 4) |
663 | 4 | 1,265 | | 1,932 | |||||||||||||
Current deferred tax liabilities |
| | 1,530 | (283 | ) | 1,247 | ||||||||||||
Other current liabilities |
159 | 165 | 36 | | 360 | |||||||||||||
Total current liabilities |
2,743 | 54 | 3,662 | (283 | ) | 6,176 | ||||||||||||
Long-term debt (note 4) |
5,410 | 44 | 2,388 | | 7,842 | |||||||||||||
Long-term financial instruments |
130 | | 2 | | 132 | |||||||||||||
Deferred income tax liabilities (note 6) |
1,939 | 6 | 730 | | 2,675 | |||||||||||||
Other liabilities |
198 | 54 | 1,316 | | 1,568 | |||||||||||||
Total liabilities |
10,420 | 158 | 8,098 | (283 | ) | 18,393 | ||||||||||||
Equity/Attributed net assets |
6,794 |
2,040 |
1,275 |
|
10,109 |
|||||||||||||
Noncontrolling interests in equity of subsidiaries |
129 | | | | 129 | |||||||||||||
Total liabilities and equity |
$ | 17,343 | 2,198 | 9,373 | (283 | ) | 28,631 | |||||||||||
5
BALANCE SHEET INFORMATION
December 31, 2008
(unaudited)
|
Attributed (note 1) | |
|
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Interactive Group |
Starz Group |
Capital Group |
Inter-group eliminations |
Consolidated Liberty |
|||||||||||||
|
amounts in millions |
|||||||||||||||||
Assets |
||||||||||||||||||
Current assets: |
||||||||||||||||||
Cash and cash equivalents |
$ | 832 | 732 | 1,496 | | 3,060 | ||||||||||||
Trade and other receivables, net |
1,171 | 181 | 156 | | 1,508 | |||||||||||||
Inventory, net |
1,032 | | | | 1,032 | |||||||||||||
Program rights |
| 492 | | (1 | ) | 491 | ||||||||||||
Financial instruments |
| 14 | 1,119 | | 1,133 | |||||||||||||
Current deferred tax assets |
201 | 55 | | (256 | ) | | ||||||||||||
Other current assets |
46 | 2 | 202 | (18 | ) | 232 | ||||||||||||
Assets of discontinued operationscurrent |
| 163 | | | 163 | |||||||||||||
Total current assets |
3,282 | 1,639 | 2,973 | (275 | ) | 7,619 | ||||||||||||
Investments in available-for-sale securities and other cost investments (note 2) |
739 | | 2,118 | | 2,857 | |||||||||||||
Long-term financial instruments |
| | 1,166 | | 1,166 | |||||||||||||
Investments in affiliates, accounted for using the equity method (note 3) |
901 | 12 | 223 | | 1,136 | |||||||||||||
Property and equipment, net |
1,064 | 117 | 147 | | 1,328 | |||||||||||||
Goodwill |
5,859 | 137 | 205 | | 6,201 | |||||||||||||
Trademarks |
2,491 | | 14 | | 2,505 | |||||||||||||
Other non-amortizable intangibles |
| | 158 | | 158 | |||||||||||||
Intangible assets subject to amortization, net |
3,115 | 11 | 230 | | 3,356 | |||||||||||||
Other assets, at cost, net of accumulated amortization |
36 | 388 | 1,127 | (22 | ) | 1,529 | ||||||||||||
Assets of discontinued operations |
| 14,048 | | | 14,048 | |||||||||||||
Total assets |
$ | 17,487 | 16,352 | 8,361 | (297 | ) | 41,903 | |||||||||||
Liabilities and Equity |
||||||||||||||||||
Current liabilities: |
||||||||||||||||||
Accounts payable |
$ | 513 | 1 | 24 | | 538 | ||||||||||||
Accrued liabilities |
741 | 140 | 212 | (1 | ) | 1,092 | ||||||||||||
Intergroup payable/receivable |
71 | 15 | (86 | ) | | | ||||||||||||
Financial instruments |
155 | | 398 | | 553 | |||||||||||||
Current portion of debt (note 4) |
175 | 4 | 437 | | 616 | |||||||||||||
Current deferred tax liabilities |
| | 1,029 | (256 | ) | 773 | ||||||||||||
Other current liabilities |
55 | 180 | 71 | (15 | ) | 291 | ||||||||||||
Liabilities of discontinued operationscurrent |
| 277 | | | 277 | |||||||||||||
Total current liabilities |
1,710 | 617 | 2,085 | (272 | ) | 4,140 | ||||||||||||
Long-term debt (note 4) |
6,956 | 48 | 2,626 | | 9,630 | |||||||||||||
Long-term financial instruments |
178 | | 11 | | 189 | |||||||||||||
Deferred income tax liabilities (note 6) |
1,999 | | 1,166 | (22 | ) | 3,143 | ||||||||||||
Other liabilities |
187 | 9 | 1,351 | (1 | ) | 1,546 | ||||||||||||
Liabilities of discontinued operations |
| 3,498 | | | 3,498 | |||||||||||||
Total liabilities |
11,030 | 4,172 | 7,239 | (295 | ) | 22,146 | ||||||||||||
Equity/Attributed net assets |
6,303 | 12,180 | 1,121 | (2 | ) | 19,602 | ||||||||||||
Noncontrolling interests in equity of subsidiaries |
154 | | 1 | | 155 | |||||||||||||
Total liabilities and equity |
$ | 17,487 | 16,352 | 8,361 | (297 | ) | 41,903 | |||||||||||
6
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Year ended December 31, 2009
(unaudited)
|
Attributed (note 1) | |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Interactive Group |
Starz Group |
Capital Group |
Consolidated Liberty |
||||||||||||
|
amounts in millions |
|||||||||||||||
Revenue: |
||||||||||||||||
Net retail sales |
$ | 8,305 | | | 8,305 | |||||||||||
Communications and programming services |
| 1,204 | 649 | 1,853 | ||||||||||||
|
8,305 | 1,204 | 649 | 10,158 | ||||||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of sales |
5,332 | | | 5,332 | ||||||||||||
Operating |
752 | 685 | 486 | 1,923 | ||||||||||||
Selling, general and administrative, including stock-based compensation (notes 1 and 5) |
614 | 221 | 343 | 1,178 | ||||||||||||
Depreciation and amortization |
566 | 21 | 79 | 666 | ||||||||||||
Impairment of long-lived assets |
| 5 | 4 | 9 | ||||||||||||
|
7,264 | 932 | 912 | 9,108 | ||||||||||||
Operating income (loss) |
1,041 | 272 | (263 | ) | 1,050 | |||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(496 | ) | (2 | ) | (130 | ) | (628 | ) | ||||||||
Dividend and interest income |
8 | 2 | 115 | 125 | ||||||||||||
Intergroup interest income (expense) |
(16 | ) | 8 | 8 | | |||||||||||
Share of losses of affiliates, net |
(14 | ) | (10 | ) | (34 | ) | (58 | ) | ||||||||
Realized and unrealized gains (losses) on financial instruments, net |
(121 | ) | 8 | (42 | ) | (155 | ) | |||||||||
Gains on dispositions, net |
42 | 27 | 215 | 284 | ||||||||||||
Other than temporary declines in fair value of investments |
| | (9 | ) | (9 | ) | ||||||||||
Loss on early extinguishment of debt |
(11 | ) | | | (11 | ) | ||||||||||
Other, net |
18 | (6 | ) | 11 | 23 | |||||||||||
|
(590 | ) | 27 | 134 | (429 | ) | ||||||||||
Earnings (loss) before income taxes |
451 | 299 | (129 | ) | 621 | |||||||||||
Income tax benefit (expense) (note 6) |
(154 |
) |
(86 |
) |
256 |
16 |
||||||||||
Net earnings (loss) from continuing operations |
297 | 213 | 127 | 637 | ||||||||||||
Earnings from discontinued operations, net of taxes |
| 5,864 | | 5,864 | ||||||||||||
Net earnings |
297 | 6,077 | 127 | 6,501 | ||||||||||||
Less net earnings attributable to the noncontrolling interests |
39 | | | 39 | ||||||||||||
Net earnings attributable to Liberty Media Corporation stockholders |
$ | 258 | 6,077 | 127 | 6,462 | |||||||||||
Net earnings |
$ | 297 | 6,077 | 127 | 6,501 | |||||||||||
Other comprehensive earnings (loss), net of taxes: |
||||||||||||||||
Foreign currency translation adjustments |
1 | | 2 | 3 | ||||||||||||
Unrealized holding gains arising during the period |
187 | | 43 | 230 | ||||||||||||
Recognition of previously unrealized gains on available-for-sale securities, net |
(26 | ) | | (1 | ) | (27 | ) | |||||||||
Share of other comprehensive loss of equity affiliates |
(5 | ) | | | (5 | ) | ||||||||||
Other |
47 | | (4 | ) | 43 | |||||||||||
Other comprehensive earnings from discontinued operations |
| 31 | | 31 | ||||||||||||
Other comprehensive earnings |
204 | 31 | 40 | 275 | ||||||||||||
Comprehensive earnings |
501 | 6,108 | 167 | 6,776 | ||||||||||||
Less comprehensive earnings attributable to the noncontrolling interests |
32 | | | 32 | ||||||||||||
Comprehensive earnings attributable to Liberty Media Corporation stockholders |
$ | 469 | 6,108 | 167 | 6,744 | |||||||||||
7
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Year ended December 31, 2008
(unaudited)
|
Attributed (note 1) | |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Interactive Group |
Starz Group |
Capital Group |
Consolidated Liberty |
||||||||||||
|
amounts in millions |
|||||||||||||||
Revenue: |
||||||||||||||||
Net retail sales |
$ | 8,079 | | | 8,079 | |||||||||||
Communications and programming services |
| 1,124 | 614 | 1,738 | ||||||||||||
|
8,079 | 1,124 | 614 | 9,817 | ||||||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of sales |
5,224 | | | 5,224 | ||||||||||||
Operating |
748 | 682 | 515 | 1,945 | ||||||||||||
Selling, general and administrative, including stock-based compensation (notes 1 and 5) |
584 | 167 | 398 | 1,149 | ||||||||||||
Depreciation and amortization |
561 | 26 | 101 | 688 | ||||||||||||
Impairment of long-lived assets |
56 | 1,262 | 251 | 1,569 | ||||||||||||
|
7,173 | 2,137 | 1,265 | 10,575 | ||||||||||||
Operating income (loss) |
906 | (1,013 | ) | (651 | ) | (758 | ) | |||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(473 | ) | (22 | ) | (172 | ) | (667 | ) | ||||||||
Dividend and interest income |
22 | 16 | 136 | 174 | ||||||||||||
Share of losses of affiliates, net |
(1,192 | ) | (7 | ) | (64 | ) | (1,263 | ) | ||||||||
Realized and unrealized gains (losses) on financial instruments, net |
(240 | ) | 272 | (292 | ) | (260 | ) | |||||||||
Gains (losses) on dispositions of assets, net |
2 | (3 | ) | 16 | 15 | |||||||||||
Other than temporary declines in fair value of investments |
(440 | ) | | (1 | ) | (441 | ) | |||||||||
Gain on early extinguishment of debt |
240 | | | 240 | ||||||||||||
Other, net |
(63 | ) | (12 | ) | 4 | (71 | ) | |||||||||
|
(2,144 | ) | 244 | (373 | ) | (2,273 | ) | |||||||||
Loss from continuing operations before income taxes |
(1,238 | ) | (769 | ) | (1,024 | ) | (3,031 | ) | ||||||||
Income tax benefit (expense) (note 6) |
493 | (191 | ) | 440 | 742 | |||||||||||
Loss from continuing operations |
(745 | ) | (960 | ) | (584 | ) | (2,289 | ) | ||||||||
Earnings from discontinued operations, net of taxes |
| 5,812 | | 5,812 | ||||||||||||
Net earnings (loss) |
(745 | ) | 4,852 | (584 | ) | 3,523 | ||||||||||
Less net earnings attributable to the noncontrolling interests |
36 | | 8 | 44 | ||||||||||||
Net earnings (loss) attributable to Liberty Media Corporation stockholders |
$ | (781 | ) | 4,852 | (592 | ) | 3,479 | |||||||||
Net earnings (loss) |
$ | (745 | ) | 4,852 | (584 | ) | 3,523 | |||||||||
Other comprehensive earnings (loss), net of taxes: |
||||||||||||||||
Foreign currency translation adjustments |
(10 | ) | | (9 | ) | (19 | ) | |||||||||
Unrealized holding losses arising during the period |
(498 | ) | | (2 | ) | (500 | ) | |||||||||
Recognition of previously unrealized losses on available-for-sale securities, net |
272 | | 1 | 273 | ||||||||||||
Share of other comprehensive loss of equity affiliates |
(10 | ) | | | (10 | ) | ||||||||||
Other |
(60 | ) | | (2 | ) | (62 | ) | |||||||||
Other comprehensive loss from discontinued operations |
| (2,618 | ) | | (2,618 | ) | ||||||||||
Other comprehensive loss |
(306 | ) | (2,618 | ) | (12 | ) | (2,936 | ) | ||||||||
Comprehensive earnings (loss) |
(1,051 | ) | 2,234 | (596 | ) | 587 | ||||||||||
Less comprehensive earnings attributable to the noncontrolling interests |
63 | | 8 | 71 | ||||||||||||
Comprehensive earnings (loss) attributable to Liberty Media Corporation stockholders |
$ | (1,114 | ) | 2,234 | (604 | ) | 516 | |||||||||
8
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Year ended December 31, 2007
(unaudited)
|
Attributed (note 1) | |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Interactive Group |
Starz Group |
Capital Group |
Consolidated Liberty |
||||||||||||
|
amounts in millions |
|||||||||||||||
Revenue: |
||||||||||||||||
Net retail sales |
$ | 7,802 | | | 7,802 | |||||||||||
Communications and programming services |
| 1,091 | 485 | 1,576 | ||||||||||||
|
7,802 | 1,091 | 485 | 9,378 | ||||||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of sales |
4,925 | | | 4,925 | ||||||||||||
Operating |
712 | 704 | 480 | 1,896 | ||||||||||||
Selling, general and administrative, including stock-based compensation (notes 1 and 5) |
516 | 170 | 227 | 913 | ||||||||||||
Depreciation and amortization |
536 | 25 | 102 | 663 | ||||||||||||
Impairment of long-lived assets |
| 41 | 182 | 223 | ||||||||||||
|
6,689 | 940 | 991 | 8,620 | ||||||||||||
Operating income (loss) |
1,113 | 151 | (506 | ) | 758 | |||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(465 | ) | (25 | ) | (151 | ) | (641 | ) | ||||||||
Dividend and interest income |
44 | 3 | 217 | 264 | ||||||||||||
Share of earnings (losses) of affiliates, net |
77 | | (68 | ) | 9 | |||||||||||
Realized and unrealized gains (losses) on financial instruments, net |
(6 | ) | 14 | 1,261 | 1,269 | |||||||||||
Gains (losses) on dispositions of assets, net |
12 | (1 | ) | 635 | 646 | |||||||||||
Other than temporary declines in fair value of investments |
| | (33 | ) | (33 | ) | ||||||||||
Other, net |
1 | 1 | (2 | ) | | |||||||||||
|
(337 | ) | (8 | ) | 1,859 | 1,514 | ||||||||||
Earnings from continuing operations before income taxes |
776 | 143 | 1,353 | 2,272 | ||||||||||||
Income tax benefit (expense) (note 6) |
(306 | ) | (69 | ) | 62 | (313 | ) | |||||||||
Earnings from continuing operations |
470 | 74 | 1,415 | 1,959 | ||||||||||||
Earnings from discontinued operations, net of taxes |
| 41 | 149 | 190 | ||||||||||||
Net earnings |
470 | 115 | 1,564 | 2,149 | ||||||||||||
Less net earnings (loss) attributable to the noncontrolling interests |
29 | (21 | ) | 27 | 35 | |||||||||||
Net earnings attributable to Liberty Media Corporation stockholders |
$ | 441 | 136 | 1,537 | 2,114 | |||||||||||
Net earnings |
$ | 470 | 115 | 1,564 | 2,149 | |||||||||||
Other comprehensive earnings (loss), net of taxes: |
||||||||||||||||
Foreign currency translation adjustments |
102 | | (1 | ) | 101 | |||||||||||
Unrealized holding losses arising during the period |
(394 | ) | | (845 | ) | (1,239 | ) | |||||||||
Recognition of previously unrealized gains on available-for-sale securities, net |
| | (375 | ) | (375 | ) | ||||||||||
Share of other comprehensive earnings of equity affiliates |
3 | | | 3 | ||||||||||||
Other |
(46 | ) | | | (46 | ) | ||||||||||
Other comprehensive loss from discontinued operations |
| (317 | ) | | (317 | ) | ||||||||||
Other comprehensive loss |
(335 | ) | (317 | ) | (1,221 | ) | (1,873 | ) | ||||||||
Comprehensive earnings (loss) |
135 | (202 | ) | 343 | 276 | |||||||||||
Less comprehensive earnings (loss) attributable to the noncontrolling interests |
35 | (21 | ) | 27 | 41 | |||||||||||
Comprehensive earnings (loss) attributable to Liberty Media Corporation stockholders |
$ | 100 | (181 | ) | 316 | 235 | ||||||||||
9
STATEMENT OF CASH FLOWS INFORMATION
Year ended December 31, 2009
(unaudited)
|
Attributed (note 1) | |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Interactive Group |
Starz Group |
Capital Group |
Consolidated Liberty |
|||||||||||||
|
amounts in millions |
||||||||||||||||
Cash flows from operating activities: |
|||||||||||||||||
Net earnings |
$ | 297 | 6,077 | 127 | 6,501 | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|||||||||||||||||
Earnings from discontinued operations |
| (5,864 | ) | | (5,864 | ) | |||||||||||
Depreciation and amortization |
566 | 21 | 79 | 666 | |||||||||||||
Impairment of long-lived assets |
| 5 | 4 | 9 | |||||||||||||
Stock-based compensation |
47 | 76 | 5 | 128 | |||||||||||||
Cash payments for stock based compensation |
(9 | ) | (2 | ) | | (11 | ) | ||||||||||
Noncash interest expense |
97 | | | 97 | |||||||||||||
Share of losses of affiliates, net |
14 | 10 | 34 | 58 | |||||||||||||
Realized and unrealized losses (gains) on financial instruments, net |
121 | (8 | ) | 42 | 155 | ||||||||||||
Gains on disposition of assets, net |
(42 | ) | (27 | ) | (215 | ) | (284 | ) | |||||||||
Other than temporary declines in fair value of investments |
| | 9 | 9 | |||||||||||||
Deferred income tax expense (benefit) |
(203 | ) | (8 | ) | 53 | (158 | ) | ||||||||||
Other noncash charges (credits), net |
(6 | ) | 21 | 60 | 75 | ||||||||||||
Intergroup tax allocation |
224 | 97 | (321 | ) | | ||||||||||||
Intergroup tax payments |
(168 | ) | (96 | ) | 264 | | |||||||||||
Other intergroup cash transfers, net |
2 | (10 | ) | 8 | | ||||||||||||
Changes in operating assets and liabilities, net of the effects of acquisitions and dispositions: |
|||||||||||||||||
Current and other assets |
5 | (15 | ) | 29 | 19 | ||||||||||||
Payables and other current liabilities |
142 | (21 | ) | (74 | ) | 47 | |||||||||||
Net cash provided by operating activities |
1,087 | 256 | 104 | 1,447 | |||||||||||||
Cash flows from investing activities: |
|||||||||||||||||
Cash proceeds from dispositions |
306 | | 251 | 557 | |||||||||||||
Proceeds from settlement of financial instruments |
7 | 21 | 1,346 | 1,374 | |||||||||||||
Cash paid for acquisitions, net of cash acquired |
(2 | ) | (1 | ) | (1 | ) | (4 | ) | |||||||||
Investments in and loans to cost and equity investees |
(24 | ) | | (726 | ) | (750 | ) | ||||||||||
Repayment of loan by equity investee |
| | 634 | 634 | |||||||||||||
Capital expended for property and equipment |
(208 | ) | (10 | ) | (46 | ) | (264 | ) | |||||||||
Net decrease (increase) in restricted cash |
(12 | ) | | 66 | 54 | ||||||||||||
Other investing activities, net |
(19 | ) | | 72 | 53 | ||||||||||||
Net cash provided by investing activities |
48 | 10 | 1,596 | 1,654 | |||||||||||||
Cash flows from financing activities: |
|||||||||||||||||
Borrowings of debt |
1,277 | | 2,061 | 3,338 | |||||||||||||
Intergroup debt borrowings |
510 | (255 | ) | (255 | ) | | |||||||||||
Repayments of debt |
(2,538 | ) | (3 | ) | (2,141 | ) | (4,682 | ) | |||||||||
Repurchases of Liberty common stock |
| (13 | ) | (5 | ) | (18 | ) | ||||||||||
Settlement of financial instruments |
(177 | ) | | 28 | (149 | ) | |||||||||||
Premium proceeds from financial instruments |
177 | | 155 | 332 | |||||||||||||
Repayment of intergroup loan |
(194 | ) | 97 | 97 | | ||||||||||||
Other financing activities, net |
(121 | ) | 99 | 21 | (1 | ) | |||||||||||
Net cash used by financing activities |
(1,066 | ) | (75 | ) | (39 | ) | (1,180 | ) | |||||||||
Effect of foreign currency rates on cash |
(17 | ) | (8 | ) | | (25 | ) | ||||||||||
Net cash provided to discontinued operations: |
|||||||||||||||||
Cash used by operating activities |
| (5 | ) | | (5 | ) | |||||||||||
Cash used by investing activities |
| (15 | ) | | (15 | ) | |||||||||||
Cash provided by financing activities |
| | | | |||||||||||||
Change in available cash held by discontinued operations |
| (101 | ) | | (101 | ) | |||||||||||
Net cash provided to discontinued operations |
| (121 | ) | | (121 | ) | |||||||||||
Net increase in cash and cash equivalents |
52 | 62 | 1,661 | 1,775 | |||||||||||||
Cash and cash equivalents at beginning of year |
832 | 732 | 1,496 | 3,060 | |||||||||||||
Cash and cash equivalents at end year |
$ | 884 | 794 | 3,157 | 4,835 | ||||||||||||
10
STATEMENT OF CASH FLOWS INFORMATION
Year ended December 31, 2008
(unaudited)
|
Attributed (note 1) | |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Interactive Group |
Starz Group |
Capital Group |
Consolidated Liberty |
|||||||||||||
|
amounts in millions |
||||||||||||||||
Cash flows from operating activities: |
|||||||||||||||||
Net earnings (loss) |
$ | (745 | ) | 4,852 | (584 | ) | 3,523 | ||||||||||
Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities: |
|||||||||||||||||
Earnings from discontinued operations |
| (5,812 | ) | | (5,812 | ) | |||||||||||
Depreciation and amortization |
561 | 26 | 101 | 688 | |||||||||||||
Impairment of long-lived assets |
56 | 1,262 | 251 | 1,569 | |||||||||||||
Stock-based compensation |
32 | 15 | 2 | 49 | |||||||||||||
Cash payments for stock-based compensation |
(9 | ) | (14 | ) | (1 | ) | (24 | ) | |||||||||
Noncash interest expense |
7 | | 1 | 8 | |||||||||||||
Share of losses of affiliates, net |
1,192 | 7 | 64 | 1,263 | |||||||||||||
Realized and unrealized losses (gains) on financial instruments, net |
240 | (272 | ) | 292 | 260 | ||||||||||||
Losses (gains) on dispositions of assets, net |
(2 | ) | 3 | (16 | ) | (15 | ) | ||||||||||
Other than temporary declines in fair value of investments |
440 | | 1 | 441 | |||||||||||||
Deferred income tax expense (benefit) |
(828 | ) | 131 | (300 | ) | (997 | ) | ||||||||||
Other noncash charges (credits), net |
(178 | ) | | 98 | (80 | ) | |||||||||||
Intergroup tax allocation |
239 | 59 | (298 | ) | | ||||||||||||
Intergroup tax payments |
(190 | ) | (79 | ) | 269 | | |||||||||||
Other intergroup cash transfers, net |
(68 | ) | 9 | 59 | | ||||||||||||
Changes in operating assets and liabilities, net of the effects of acquisitions: |
|||||||||||||||||
Current and other assets |
(74 | ) | 60 | (129 | ) | (143 | ) | ||||||||||
Payables and other current liabilities |
(165 | ) | (23 | ) | 100 | (88 | ) | ||||||||||
Net cash provided (used) by operating activities |
508 | 224 | (90 | ) | 642 | ||||||||||||
Cash flows from investing activities: |
|||||||||||||||||
Cash proceeds from dispositions |
18 | | 17 | 35 | |||||||||||||
Proceeds from settlement of financial instruments |
| | 33 | 33 | |||||||||||||
Cash paid for acquisitions, net of cash acquired |
(69 | ) | (7 | ) | (1 | ) | (77 | ) | |||||||||
Investment in and loans to cost and equity investees |
(340 | ) | (19 | ) | (232 | ) | (591 | ) | |||||||||
Capital expended for property and equipment |
(166 | ) | (7 | ) | (29 | ) | (202 | ) | |||||||||
Net decrease in restricted cash |
| | 383 | 383 | |||||||||||||
Other investing activities, net |
16 | (11 | ) | (88 | ) | (83 | ) | ||||||||||
Net cash provided (used) by investing activities |
(541 | ) | (44 | ) | 83 | (502 | ) | ||||||||||
Cash flows from financing activities: |
|||||||||||||||||
Borrowings of debt |
1,483 | | 1,548 | 3,031 | |||||||||||||
Repayments of debt |
(1,437 | ) | (3 | ) | (1,323 | ) | (2,763 | ) | |||||||||
Repurchases of Liberty common stock |
(75 | ) | | (462 | ) | (537 | ) | ||||||||||
Settlement of financial instruments |
(56 | ) | (13 | ) | (277 | ) | (346 | ) | |||||||||
Intergroup cash transfers, net |
| 450 | (450 | ) | | ||||||||||||
Reattribution of cash |
380 | (380 | ) | | | ||||||||||||
Other financing activities, net |
(17 | ) | 15 | (8 | ) | (10 | ) | ||||||||||
Net cash provided (used) by financing activities |
278 | 69 | (972 | ) | (625 | ) | |||||||||||
Effect of foreign currency rates on cash |
30 | | (13 | ) | 17 | ||||||||||||
Net cash provided by discontinued operations: |
|||||||||||||||||
Cash provided by operating activities |
| 2 | | 2 | |||||||||||||
Cash used by investing activities |
| (1,464 | ) | | (1,464 | ) | |||||||||||
Cash provided by financing activities |
| 1,930 | | 1,930 | |||||||||||||
Change in available cash held by discontinued operations |
| (68 | ) | | (68 | ) | |||||||||||
Net cash provided by discontinued operations |
| 400 | | 400 | |||||||||||||
Net increase (decrease) in cash and cash equivalents |
275 | 649 | (992 | ) | (68 | ) | |||||||||||
Cash and cash equivalents at beginning of year |
557 | 83 | 2,488 | 3,128 | |||||||||||||
Cash and cash equivalents at end of year |
$ | 832 | 732 | 1,496 | 3,060 | ||||||||||||
11
STATEMENT OF CASH FLOWS INFORMATION
Year ended December 31, 2007
(unaudited)
|
Attributed (note 1) | |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Interactive Group |
Starz Group |
Capital Group |
Consolidated Liberty |
|||||||||||||
|
amounts in millions |
||||||||||||||||
Cash flows from operating activities: |
|||||||||||||||||
Net earnings |
$ | 470 | 115 | 1,564 | 2,149 | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|||||||||||||||||
Earnings from discontinued operations |
| (41 | ) | (149 | ) | (190 | ) | ||||||||||
Depreciation and amortization |
536 | 25 | 102 | 663 | |||||||||||||
Impairment of long-lived assets |
| 41 | 182 | 223 | |||||||||||||
Stock-based compensation |
35 | 42 | 12 | 89 | |||||||||||||
Cash payments for stock-based compensation |
(37 | ) | | (3 | ) | (40 | ) | ||||||||||
Noncash interest expense |
4 | | 5 | 9 | |||||||||||||
Share of losses (earnings) of affiliates, net |
(77 | ) | | 68 | (9 | ) | |||||||||||
Realized and unrealized losses (gains) on financial instruments, net |
6 | (14 | ) | (1,261 | ) | (1,269 | ) | ||||||||||
Losses (gains) on dispositions of assets, net |
(12 | ) | 1 | (635 | ) | (646 | ) | ||||||||||
Other than temporary declines in fair value of investments |
| | 33 | 33 | |||||||||||||
Deferred income tax expense (benefit) |
(128 | ) | 48 | 200 | 120 | ||||||||||||
Other noncash charges (credits), net |
(1 | ) | | 142 | 141 | ||||||||||||
Intergroup tax allocation |
278 | 21 | (299 | ) | | ||||||||||||
Intergroup tax payments |
(321 | ) | (50 | ) | 371 | | |||||||||||
Other intergroup cash transfers, net |
54 | | (54 | ) | | ||||||||||||
Changes in operating assets and liabilities, net of the effects of acquisitions: |
|||||||||||||||||
Current and other assets |
(290 | ) | 21 | (165 | ) | (434 | ) | ||||||||||
Payables and other current liabilities |
87 | (41 | ) | 223 | 269 | ||||||||||||
Net cash provided by operating activities |
604 | 168 | 336 | 1,108 | |||||||||||||
Cash flows from investing activities: |
|||||||||||||||||
Cash proceeds from dispositions |
12 | | 483 | 495 | |||||||||||||
Proceeds from settlement of financial instruments |
| | 75 | 75 | |||||||||||||
Cash received in exchange transactions |
| | 1,154 | 1,154 | |||||||||||||
Cash paid for acquisitions, net of cash acquired |
(236 | ) | | (7 | ) | (243 | ) | ||||||||||
Investment in special purpose entity |
| | (750 | ) | (750 | ) | |||||||||||
Capital expended for property and equipment |
(289 | ) | (10 | ) | (16 | ) | (315 | ) | |||||||||
Net increase in restricted stock |
| | (882 | ) | (882 | ) | |||||||||||
Other investing activities, net |
(74 | ) | 3 | (98 | ) | (169 | ) | ||||||||||
Net cash used by investing activities |
(587 | ) | (7 | ) | (41 | ) | (635 | ) | |||||||||
Cash flows from financing activities: |
|||||||||||||||||
Borrowings of debt |
1,112 | | 757 | 1,869 | |||||||||||||
Repayments of debt |
(332 | ) | (3 | ) | (163 | ) | (498 | ) | |||||||||
Repurchases of Liberty common stock |
(1,224 | ) | | (1,305 | ) | (2,529 | ) | ||||||||||
Intergroup cash transfers, net |
| (111 | ) | 111 | | ||||||||||||
Contribution from noncontrolling owner |
| | 751 | 751 | |||||||||||||
Other financing activities, net |
28 | 1 | (27 | ) | 2 | ||||||||||||
Net cash provided (used) by financing activities |
(416 | ) | (113 | ) | 124 | (405 | ) | ||||||||||
Effect of foreign currency rates on cash |
10 | | (2 | ) | 8 | ||||||||||||
Net cash provided by discontinued operations: |
|||||||||||||||||
Cash provided by operating activities |
| 50 | 8 | 58 | |||||||||||||
Cash provided (used) by investing activities |
| 7 | (9 | ) | (2 | ) | |||||||||||
Cash used by financing activities |
| (106 | ) | | (106 | ) | |||||||||||
Change in available cash held by discontinued operations |
| 2 | 2 | 4 | |||||||||||||
Net cash provided (used) by discontinued operations |
| (47 | ) | 1 | (46 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents |
(389 | ) | 1 | 418 | 30 | ||||||||||||
Cash and cash equivalents at beginning of year |
946 | 82 | 2,070 | 3,098 | |||||||||||||
Cash and cash equivalents at end of year |
$ | 557 | 83 | 2,488 | 3,128 | ||||||||||||
12
Notes to Attributed Financial Information
(unaudited)
The Interactive Group focuses on video and on-line commerce businesses. Accordingly, we expect that businesses that we may acquire in the future that we believe are complementary to this strategy will also be attributed to the Interactive Group.
The Starz Group consists primarily of our subsidiary Starz Entertainment, LLC, and approximately $542 million of corporate cash. Accordingly, the accompanying attributed financial information for the Starz Group includes the assets, liabilities, revenue, expenses and cash flows of Starz Entertainment.
The Starz Group focuses primarily on programming businesses. Accordingly, we expect that businesses that we may acquire in the future that we believe are complementary to Starz Entertainment will also be attributed to the Starz Group.
The Capital Group consists of all of our businesses not included in the Interactive Group or the Starz Group, including our consolidated subsidiaries Starz Media, LLC, Atlanta National League Baseball Club, Inc. and TruePosition, Inc., and certain cost and equity investments. Accordingly, the accompanying attributed financial information for the Capital Group includes these investments and the assets, liabilities, revenue, expenses and cash flows of these consolidated subsidiaries. In addition, we have attributed to the Capital Group all of our notes and debentures (and related interest expense) that have not been attributed to the Interactive Group or the Starz Group. See note 4 below for the debt obligations attributed to the Capital Group.
Any businesses that we may acquire in the future that we do not attribute to the Interactive Group or the Starz Group will be attributed to the Capital Group.
While we believe the allocation methodology described above is reasonable and fair to each group, we may elect to change the allocation methodology in the future. In the event we elect to transfer assets or businesses from one group to the other, such transfer would be made on a fair value basis and would be accounted for as a short-term loan unless our board of directors determines to account for it as a long-term loan or through an inter-group interest.
13
Notes to Attributed Financial Information (Continued)
(unaudited)
|
December 31, | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | ||||||||
|
amounts in millions |
|||||||||
Capital Group |
||||||||||
Time Warner Inc.(a) |
$ | 997 | 1,033 | |||||||
Time Warner Cable Inc.(a) |
356 | | ||||||||
Sprint Nextel Corporation(a) |
260 | 160 | ||||||||
Motorola, Inc.(a) |
403 | 328 | ||||||||
Viacom, Inc. |
226 | 145 | ||||||||
CenturyTel, Inc./Embarq Corporation(a) |
195 | 157 | ||||||||
Other available-for-sale equity securities(a) |
220 | 40 | ||||||||
Other available-for-sale debt securities |
676 | 224 | ||||||||
Other cost investments and related receivables |
22 | 31 | ||||||||
Total attributed Capital Group |
3,355 | 2,118 | ||||||||
Interactive Group |
||||||||||
IAC/InterActiveCorp |
492 | 638 | ||||||||
Other |
242 | 101 | ||||||||
Total attributed Interactive Group |
734 | 739 | ||||||||
Starz Group |
||||||||||
Other |
31 | | ||||||||
Total attributed Starz Group |
31 | | ||||||||
Consolidated Liberty |
$ | 4,120 | 2,857 | |||||||
|
|
|
|
Share of earnings (losses) years ended December 31, |
||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
December 31, 2009 | |||||||||||||||||||
|
Percentage ownership |
Carrying value |
Market value |
|||||||||||||||||
|
2009 | 2008 | 2007 | |||||||||||||||||
|
dollar amounts in millions |
|||||||||||||||||||
Interactive Group |
||||||||||||||||||||
Expedia(a) |
24 | % | $ | 631 | 1,781 | 72 | (726 | ) | 68 | |||||||||||
Capital Group |
||||||||||||||||||||
Sirius |
40 | % | $ | 33 | (b | ) | (28 | ) | | |
14
Notes to Attributed Financial Information (Continued)
(unaudited)
|
December 31, 2009 | ||||||||
---|---|---|---|---|---|---|---|---|---|
|
Outstanding principal |
Carrying value |
|||||||
|
amounts in millions |
||||||||
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 | 320 | |||||||
QVC 7.5% Senior Secured Notes due 2019 |
1,000 | 983 | |||||||
QVC bank credit facilities |
2,996 | 2,996 | |||||||
Other debt |
188 | 188 | |||||||
Total Interactive Group debt |
6,319 | 6,073 | |||||||
Capital Group |
|||||||||
3.125% Exchangeable Senior Debentures due 2023 |
1,138 | 1,157 | |||||||
4% Exchangeable Senior Debentures due 2029 |
469 | 243 | |||||||
3.75% Exchangeable Senior Debentures due 2030 |
460 | 237 | |||||||
3.5% Exchangeable Senior Debentures due 2031 |
494 | 297 | |||||||
Liberty bank facility |
750 | 750 | |||||||
Liberty derivative loan |
838 | 838 | |||||||
Subsidiary debt |
131 | 131 | |||||||
Total Capital Group debt |
4,280 | 3,653 | |||||||
Starz Group |
|||||||||
Subsidiary debt |
48 | 48 | |||||||
Total debt |
$ | 10,647 | 9,774 | ||||||
|
Years ended December 31, | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | |||||||
|
amounts in millions |
|||||||||
Interactive Group |
$ | 26 | 19 | 17 | ||||||
Starz Group |
$ | 46 | 11 | 19 |
15
Notes to Attributed Financial Information (Continued)
(unaudited)
While we believe that this allocation method is reasonable and fair to each group, we may elect to change the allocation methodology or percentages used to allocate general and administrative expenses in the future.
Interactive Group
The Interactive Group's income tax benefit (expense) consists of:
|
Years ended December 31, | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | ||||||||
|
amounts in millions |
||||||||||
Current: |
|||||||||||
Federal |
$ | (223 | ) | (220 | ) | (280 | ) | ||||
State and local |
(49 | ) | (19 | ) | (64 | ) | |||||
Foreign |
(85 | ) | (96 | ) | (90 | ) | |||||
|
(357 | ) | (335 | ) | (434 | ) | |||||
Deferred: |
|||||||||||
Federal |
173 | 708 | 94 | ||||||||
State and local |
27 | 110 | 33 | ||||||||
Foreign |
3 | 10 | 1 | ||||||||
|
203 | 828 | 128 | ||||||||
Income tax benefit (expense) |
$ | (154 | ) | 493 | (306 | ) | |||||
The Interactive Group's income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:
|
Years ended December 31, | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | ||||||||
|
amounts in millions |
||||||||||
Computed expected tax benefit (expense) |
$ | (158 | ) | 433 | (272 | ) | |||||
State and local income taxes, net of federal income taxes |
(20 | ) | 57 | (19 | ) | ||||||
Foreign taxes, net of foreign tax credits |
(4 | ) | 28 | (10 | ) | ||||||
Change in valuation allowance affecting tax expense |
| 15 | 5 | ||||||||
Nondeductible losses related to the Company's common stock |
20 | (57 | ) | | |||||||
Recognition of tax benefits (expense) not previously recognized, net |
| 19 | (5 | ) | |||||||
Expenses not deductible for income tax purposes |
(1 | ) | | (1 | ) | ||||||
Other, net |
9 | (2 | ) | (4 | ) | ||||||
Income tax benefit (expense) |
$ | (154 | ) | 493 | (306 | ) | |||||
16
Notes to Attributed Financial Information (Continued)
(unaudited)
The tax effects of temporary differences that give rise to significant portions of the Interactive Group's deferred tax assets and deferred tax liabilities are presented below:
|
December 31, | ||||||||
---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | |||||||
|
amounts in millions |
||||||||
Deferred tax assets: |
|||||||||
Net operating and capital loss carryforwards |
$ | 36 | 42 | ||||||
Accrued stock compensation |
17 | 11 | |||||||
Other accrued liabilities |
169 | 197 | |||||||
Deferred revenue |
16 | 9 | |||||||
Investments |
124 | 181 | |||||||
Other future deductible amounts |
90 | 121 | |||||||
Deferred tax assets |
452 | 561 | |||||||
Valuation allowance |
(1 | ) | | ||||||
Net deferred tax assets |
451 | 561 | |||||||
Deferred tax liabilities: |
|||||||||
Intangible assets |
1,881 | 1,959 | |||||||
Discount on exchangeable debentures |
225 | 300 | |||||||
Other |
89 | 100 | |||||||
Deferred tax liabilities |
2,195 | 2,359 | |||||||
Net deferred tax liabilities |
$ | 1,744 | 1,798 | ||||||
Starz Group
The Starz Group's income tax benefit (expense) consists of:
|
Years ended December 31, | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | ||||||||
|
amounts in millions |
||||||||||
Current: |
|||||||||||
Federal |
$ | (83 | ) | (50 | ) | (20 | ) | ||||
State and local |
(9 | ) | (9 | ) | 1 | ||||||
Foreign |
(2 | ) | (1 | ) | (2 | ) | |||||
|
(94 | ) | (60 | ) | (21 | ) | |||||
Deferred: |
|||||||||||
Federal |
4 | (116 | ) | (39 | ) | ||||||
State and local |
4 | (15 | ) | (9 | ) | ||||||
Foreign |
| | | ||||||||
|
8 | (131 | ) | (48 | ) | ||||||
Income tax expense |
$ | (86 | ) | (191 | ) | (69 | ) | ||||
17
Notes to Attributed Financial Information (Continued)
(unaudited)
The Starz Group's income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:
|
Years ended December 31, | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | ||||||||
|
amounts in millions |
||||||||||
Computed expected tax benefit (expense) |
$ | (104 | ) | 270 | (50 | ) | |||||
State and local income taxes, net of federal income taxes |
(4 | ) | (16 | ) | (6 | ) | |||||
Change in valuation allowance affecting tax expense |
3 | (17 | ) | | |||||||
Impairment of goodwill not deductible for tax purposes |
| (442 | ) | (11 | ) | ||||||
Expenses not deductible for income tax purposes |
(3 | ) | | | |||||||
Excess tax deductions over book expense |
19 | | | ||||||||
Other, net |
3 | 14 | (2 | ) | |||||||
Income tax expense |
$ | (86 | ) | (191 | ) | (69 | ) | ||||
The tax effects of temporary differences that give rise to significant portions of the Starz Group's deferred tax assets and deferred tax liabilities are presented below:
|
December 31, | ||||||||
---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | |||||||
|
amounts in millions |
||||||||
Deferred tax assets: |
|||||||||
Net operating and capital loss carryforwards |
$ | 3 | 7 | ||||||
Accrued stock compensation |
87 | 69 | |||||||
Intangible assets |
7 | 11 | |||||||
Other future deductible amounts |
8 | 14 | |||||||
Deferred tax assets |
105 | 101 | |||||||
Valuation allowance |
(5 | ) | (6 | ) | |||||
Net deferred tax assets |
100 | 95 | |||||||
Deferred tax liabilities: |
|||||||||
Other |
18 | 18 | |||||||
Deferred tax liabilities |
18 | 18 | |||||||
Net deferred tax assets |
$ | (82 | ) | (77 | ) | ||||
18
Notes to Attributed Financial Information (Continued)
(unaudited)
Capital Group
The Capital Group's income tax benefit (expense) consists of:
|
Years ended December 31, | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | ||||||||
|
amounts in millions |
||||||||||
Current: |
|||||||||||
Federal |
$ | 287 | 128 | 281 | |||||||
State and local |
22 | 9 | (18 | ) | |||||||
Foreign |
| 3 | (1 | ) | |||||||
|
309 | 140 | 262 | ||||||||
Deferred: |
|||||||||||
Federal |
(69 | ) | 266 | (208 | ) | ||||||
State and local |
16 | 34 | 8 | ||||||||
Foreign |
| | | ||||||||
|
(53 | ) | 300 | (200 | ) | ||||||
Income tax benefit |
$ | 256 | 440 | 62 | |||||||
The Capital Group's income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:
|
Years ended December 31, | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | 2007 | |||||||
|
amounts in millions |
|||||||||
Computed expected tax benefit (expense) |
$ | 45 | 359 | (473 | ) | |||||
Nontaxable exchange of investments for subsidiaries and cash |
| (2 | ) | 541 | ||||||
State and local income taxes, net of federal income taxes |
20 | 28 | (10 | ) | ||||||
Change in valuation allowance affecting tax expense |
6 | (3 | ) | (10 | ) | |||||
Recognition of tax benefits not previously recognized, net |
201 | 56 | | |||||||
Expenses not deductible for income tax purposes |
(12 | ) | | (2 | ) | |||||
Other, net |
(4 | ) | 2 | 16 | ||||||
Income tax benefit |
$ | 256 | 440 | 62 | ||||||
19
Notes to Attributed Financial Information (Continued)
(unaudited)
The tax effects of temporary differences that give rise to significant portions of the Capital Group's deferred tax assets and deferred tax liabilities are presented below:
|
December 31, | ||||||||
---|---|---|---|---|---|---|---|---|---|
|
2009 | 2008 | |||||||
|
amounts in millions |
||||||||
Deferred tax assets: |
|||||||||
Net operating and capital loss carryforwards |
$ | 135 | 287 | ||||||
Accrued liabilities |
66 | 70 | |||||||
Deferred revenue |
403 | 359 | |||||||
Other |
62 | 17 | |||||||
Deferred tax assets |
666 | 733 | |||||||
Valuation allowance |
(11 | ) | (17 | ) | |||||
Net deferred tax assets |
655 | 716 | |||||||
Deferred tax liabilities: |
|||||||||
Investments |
1,660 | 1,414 | |||||||
Intangible assets |
147 | 146 | |||||||
Discount on exchangeable debentures |
738 | 1,351 | |||||||
Deferred gain on debt retirements |
316 | | |||||||
Other |
54 | | |||||||
Deferred tax liabilities |
2,915 | 2,911 | |||||||
Net deferred tax liabilities |
$ | 2,260 | 2,195 | ||||||
At the option of the holder, each share of Series B common stock will be convertible into one share of Series A common stock of the same group. At the discretion of our board, the common stock related to one group may be converted into common stock of the same series that is related to one of our other groups.
20