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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  
               

(1)
Includes stock-based compensation of $47 million, $32 million and $35 million for the years ended December 31, 2009, 2008 and 2007, respectively.

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  
               

(1)
Includes stock-based compensation of $76 million, $15 million and $42 million for the years ended December 31, 2009, 2008 and 2007, respectively.

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  
               

(1)
Includes stock-based compensation of $5 million, $2 million and $12 million for the years ended December 31, 2009, 2008 and 2007, respectively.

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 operations—current

        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 operations—current

        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)

(1)
The assets attributed to our Interactive Group as of December 31, 2009 include our consolidated subsidiaries QVC, Inc., Provide Commerce, Inc., Backcountry.com, Inc., Bodybuilding.com, LLC and BuySeasons, Inc., and our interests in IAC/InterActiveCorp, Expedia, Inc., GSI Commerce, Inc., HSN, Inc., Interval Leisure Group, Inc., Ticketmaster Entertainment, Inc. and Tree.com, Inc. Accordingly, the accompanying attributed financial information for the Interactive Group includes the foregoing investments, 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 Starz 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 Starz Group and the Capital Group as described in note 5 below.

13



Notes to Attributed Financial Information (Continued)

(unaudited)

(2)
Investments in AFS securities, which are recorded at their respective fair market values, and other cost investments are summarized as follows:

 
  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  
           

(a)
Includes shares pledged as collateral for share borrowing arrangements.
(3)
The following table presents information regarding certain equity method investments attributed to each of the Interactive Group and the Capital Group:

 
   
   
   
  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 )        

(a)
Our share of losses of Expedia for the year ended December 31, 2008 includes the write off of our excess basis in the amount of $119 million.

(b)
As of December 31, 2009, the Sirius Preferred Stock had a market value of $1,552 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 Capital Group and the Starz Group is comprised of the following:

 
  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  
           
(5)
Cash compensation expense for our corporate employees has been allocated among the Interactive Group, the Starz Group and the Capital Group based on the estimated percentage of time spent providing services for each group. Stock-based compensation expense for our corporate employees has been allocated among the Interactive Group, the Starz Group and the Capital Group based on the compensation derived from the equity awards for the respective tracking stock. 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 Starz Group, including stock-based compensation, are as follows:

 
  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)

(6)
We have accounted for income taxes for the Interactive Group, the Starz 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.

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 )
               

 
  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)

 
  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)

 
  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 )
               

 
  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  
               

 
  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)

 
  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  
           
(7)
The Liberty Interactive Stock, the Liberty Starz Stock and the Liberty Capital 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 the holders of only Series A and Series B Liberty Interactive Stock, the approval of the holders of only Series A and Series B Liberty Starz Stock or the approval of the holders of only Series A and Series B Liberty Capital Stock.

20




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Unaudited Attributed Financial Information for Tracking Stock Groups
Notes to Attributed Financial Information (unaudited)