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Exhibit 99.1

Attributed Financial Information for Tracking Stock Groups

        Our Liberty Interactive common stock is intended to reflect the separate performance of our Interactive Group which is comprised of our businesses engaged in video and on-line commerce, including our subsidiaries, QVC, Inc., Provide Commerce, Inc., Backcountry.com, Inc., Bodybuilding.com, LLC and BuySeasons, Inc. and our interests in IAC/InterActiveCorp, Expedia, Inc., HSN, Inc., Interval Leisure Group, Inc. and Tree.com, Inc. Our Liberty Starz common stock is intended to reflect the separate performance of our Starz Group which primarily includes our wholly-owned subsidiary Starz Entertainment, LLC and Starz Media, as of September 30, 2010. Our Liberty Capital common stock is intended to reflect the separate performance of our Capital Group which is comprised of all of our assets and businesses not attributed to the Interactive Group or the Starz Group.

        The following tables present our assets, liabilities, revenue, expenses and cash flows as of and for the periods ended September 30, 2010 and 2009. 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 unaudited condensed consolidated financial statements for the three and nine month periods ended September 30, 2010 included in this Quarterly Report on Form 10-Q.

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

1


SUMMARY ATTRIBUTED FINANCIAL DATA

Interactive Group

 
  September 30,
2010
  December 31,
2009
 
 
  amounts in millions
 

Summary balance sheet data:

             

Current assets

  $ 2,645     3,379  

Cost investments

  $ 336     734  

Equity investments

  $ 933     895  

Total assets

  $ 16,029     17,343  

Long-term debt, including current portion

  $ 5,415     6,073  

Long-term deferred income tax liabilities

  $ 2,726     1,939  

Attributed net assets

  $ 5,952     6,794  

 
  Three months ended
September 30,
  Nine months ended
September 30,
 
 
  2010   2009   2010   2009  
 
  amounts in millions
 

Summary operations data:

                         

Revenue

  $ 1,968     1,827     6,046     5,594  

Cost of sales

    (1,254 )   (1,182 )   (3,832 )   (3,573 )

Operating expenses

    (186 )   (172 )   (562 )   (519 )

Selling, general and administrative expenses(1)

    (167 )   (140 )   (519 )   (437 )

Depreciation and amortization

    (141 )   (139 )   (421 )   (421 )
                   
 

Operating income

    220     194     712     644  

Interest expense

   
(158

)
 
(147

)
 
(468

)
 
(353

)

Share of earnings of affiliates, net

    36         95      

Realized and unrealized losses on financial instruments

    (68 )       (36 )    

Gains on disposition, net

    30         394      

Other income (expense), net

    5     (57 )   (41 )   (159 )

Income tax (expense) benefit

    55     13     (151 )   (41 )
                   
 

Net earnings

    120     3     505     91  

Less net earnings attributable to the noncontrolling interests

    15     9     32     26  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 105     (6 )   473     65  
                   

(1)
Includes stock-based compensation of $12 million and $12 million for the three months ended September 30, 2010 and 2009, respectively, and $49 million and $33 million for the nine months ended September 30, 2010 and 2009, respectively.

2


SUMMARY ATTRIBUTED FINANCIAL DATA

Starz Group

 
  September 30,
2010
  December 31,
2009
 
 
  amounts in millions
 

Summary balance sheet data:

             

Current assets

  $ 1,999     1,544  

Total assets

  $ 2,736     2,198  

Long-term debt, including current portion

  $ 99     48  

Attributed net assets

  $ 2,179     2,040  

 

 
  Three months ended
September 30,
  Nine months ended
September 30,
 
 
  2010   2009   2010   2009  
 
  amounts in millions
 

Summary operations data:

                         

Revenue

  $ 319     304     937     900  

Operating expenses

    (192 )   (174 )   (529 )   (496 )

Selling, general and administrative expenses(1)

    (43 )   (58 )   (127 )   (164 )

Depreciation and amortization

    (7 )   (5 )   (16 )   (17 )
                   
 

Operating income

    77     67     265     223  

Other income (expense), net

   
1
   
(3

)
 
1
   
(3

)

Income tax expense

    (30 )   (36 )   (100 )   (73 )
                   
 

Earnings from continuing operations

    48     28     166     147  

Loss from discontinued operations, net of taxes

   
   
(26

)
 
   
85
 
                   
 

Net earnings

  $ 48     2     166     232  
                   

(1)
Includes stock-based compensation of $5 million and $20 million for the three months ended September 30, 2010 and 2009, respectively, and $14 million and $60 million for the nine months ended September 30, 2010 and 2009, respectively.

3


SUMMARY ATTRIBUTED FINANCIAL DATA

Capital Group

 
  September 30,
2010
  December 31,
2009
 
 
  amounts in millions
 

Summary balance sheet data:

             

Current assets

  $ 2,094     4,087  

Cost investments

  $ 4,193     3,355  

Total assets

  $ 7,881     9,373  

Long-term debt, including current portion

  $ 2,005     3,653  

Deferred income tax liabilities, including current portion

  $ 1,211     2,260  

Attributed net assets

  $ 2,016     1,275  

 

 
  Three months ended
September 30,
  Nine months ended
September 30,
 
 
  2010   2009   2010   2009  
 
  amounts in millions
 

Summary operations data:

                         

Revenue

  $ 251     171     617     495  

Operating expenses

    (157 )   (146 )   (458 )   (381 )

Selling, general and administrative expenses (1)

    (77 )   (99 )   (258 )   (218 )

Depreciation and amortization

    (20 )   (20 )   (57 )   (62 )
                   
 

Operating loss

    (3 )   (94 )   (156 )   (166 )

Interest expense

   
(12

)
 
(29

)
 
(45

)
 
(102

)

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

    70     (98 )   125     (58 )

Other income (expense), net

    (32 )   3     25     178  

Income tax benefit

    3     86     14     57  
                   
 

Net earnings (loss)

    26     (132 )   (37 )   (91 )

Less net earnings (loss) attributable to the noncontrolling interests

            (3 )    
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 26     (132 )   (34 )   (91 )
                   

(1)
Includes stock-based compensation of $8 million and $3 million for the three months ended September 30, 2010 and 2009, respectively, and $22 million and $5 million for the nine months ended September 30, 2010 and 2009, respectively.

4



BALANCE SHEET INFORMATION
September 30, 2010
(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

  $ 935     1,015     1,581         3,531  
 

Trade and other receivables, net

    517     230     51         798  
 

Inventory, net

    1,109                 1,109  
 

Program rights

        504             504  
 

Current deferred tax assets

        61         (61 )    
 

Other current assets

    84     189     462         735  
                       
   

Total current assets

    2,645     1,999     2,094     (61 )   6,677  
                       

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

    336     1     4,193         4,530  

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

    933         94         1,027  

Property and equipment, net

    1,042     109     144         1,295  

Goodwill

    5,901     132     200         6,233  

Trademarks

    2,492                 2,492  

Other non-amortizable intangibles

            153         153  

Intangible assets subject to amortization, net

    2,593     21     149         2,763  

Other assets, at cost, net of accumulated amortization

    87     474     854         1,415  
                       
   

Total assets

  $ 16,029     2,736     7,881     (61 )   26,585  
                       

Liabilities and Equity

                               

Current liabilities:

                               
 

Accounts payable

  $ 585     8     9         602  
 

Accrued liabilities

    631     261     51         943  
 

Intergroup payable (receivable)

    (15 )   (34 )   49          
 

Financial instruments

    99     4     1,148         1,251  
 

Current portion of debt (note 4)

    443     34             477  
 

Current deferred tax liabilities

    104         1,189     (61 )   1,232  
 

Other current liabilities

    140     160     249         549  
                       
   

Total current liabilities

    1,987     433     2,695     (61 )   5,054  
                       

Long-term debt (note 4)

    4,972     65     2,005         7,042  

Deferred income tax liabilities

    2,726     9     22         2,757  

Other liabilities

    283     50     1,143         1,476  
                       
   

Total liabilities

    9,968     557     5,865     (61 )   16,329  

Equity/Attributed net assets

    5,952     2,179     2,016         10,147  

Noncontrolling interests in equity of subsidiaries

    109                 109  
                       
   

Total liabilities and equity

  $ 16,029     2,736     7,881     (61 )   26,585  
                       

5


STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Three months ended September 30, 2010
(unaudited)

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

Revenue:

                         
 

Net retail sales

  $ 1,968             1,968  
 

Communications and programming services

        319     251     570  
                   

    1,968     319     251     2,538  
                   

Operating costs and expenses:

                         
 

Cost of sales

    1,254             1,254  
 

Operating

    186     192     157     535  
 

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

    167     43     77     287  
 

Depreciation and amortization

    141     7     20     168  
                   

    1,748     242     254     2,244  
                   
   

Operating income (loss)

    220     77     (3 )   294  

Other income (expense):

                         
 

Interest expense

    (158 )       (12 )   (170 )
 

Share of earnings (loss) of affiliates, net (note 3)

    36         (59 )   (23 )
 

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

    (68 )       70     2  
 

Loss on dispositions, net

    30     (2 )       28  
 

Other, net

    5     3     27     35  
                   

    (155 )   1     26     (128 )
                   
   

Earnings before income taxes

    65     78     23     166  

Income tax (expense) benefit

   
55
   
(30

)
 
3
   
28
 
                   
   

Net earnings

    120     48     26     194  

Less net earnings attributable to the noncontrolling interests

    15             15  
                   

Net earnings attributable to Liberty Media Corporation shareholders

  $ 105     48     26     179  
                   

Net earnings

  $ 120     48     26     194  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    74             74  
 

Unrealized holding gains arising during the period

    34         3     37  
 

Share of other comprehensive earnings of equity affiliates

    8             8  
 

Other, net

    21             21  
                   
   

Other comprehensive earnings

    137         3     140  
                   
     

Comprehensive earnings

    257     48     29     334  

Less comprehensive earnings attributable to the noncontrolling interests

    20             20  
                   

Comprehensive earnings attributable to Liberty Media Corporation shareholders

  $ 237     48     29     314  
                   

6


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

(unaudited)

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

Revenue:

                         
 

Net retail sales

  $ 1,827             1,827  
 

Communications and programming services

        304     171     475  
                   

    1,827     304     171     2,302  
                   

Operating costs and expenses:

                         
 

Cost of sales

    1,182             1,182  
 

Operating

    172     174     146     492  
 

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

    140     58     99     297  
 

Depreciation and amortization

    139     5     20     164  
                   

    1,633     237     265     2,135  
                   
   

Operating income (loss)

    194     67     (94 )   167  

Other income (expense):

                         
 

Interest expense

    (147 )   (1 )   (29 )   (177 )
 

Intergroup interest income (expense)

    (8 )   4     4      
 

Share of earnings (losses) of affiliates, net

    36     (4 )   (22 )   10  
 

Realized and unrealized losses on financial instruments, net

    (67 )   (2 )   (98 )   (167 )
 

Gains (losses) on dispositions, net

    3     1     (17 )   (13 )
 

Other, net

    (21 )   (1 )   38     16  
                   

    (204 )   (3 )   (124 )   (331 )
                   
   

Earnings (loss) from continuing operations before income taxes

    (10 )   64     (218 )   (164 )

Income tax benefit (expense) (note 6)

    13     (36 )   86     63  
                   
   

Earnings (loss) from continuing operations

    3     28     (132 )   (101 )

Loss from discontinued operations, net of taxes

        (26 )       (26 )
                   
   

Net earnings (loss)

    3     2     (132 )   (127 )

Less net earnings attributable to the noncontrolling interests

    9             9  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ (6 )   2     (132 )   (136 )
                   
   

Net earnings (loss)

  $ 3     2     (132 )   (127 )
                   

Other comprehensive earnings, net of taxes:

                         
 

Foreign currency translation adjustments

    41     (6 )   1     36  
 

Unrealized holding gains (losses) arising during the period

    143     8     20     171  
 

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

    (1 )       (1 )   (2 )
 

Share of other comprehensive loss of equity affiliates

        (1 )       (1 )
 

Other comprehensive earnings from discontinued operations

        20         20  
   

Other

    (3 )           (3 )
                   
   

Other comprehensive earnings

    180     21     20     221  
                   
     

Comprehensive earnings (loss)

    183     23     (112 )   94  

Less comprehensive earnings attributable to the noncontrolling interests

    17             17  
                   

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 166     23     (112 )   77  
                   

7



STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS INFORMATION
Nine months ended September 30, 2010
(unaudited)

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

Revenue:

                         
 

Net retail sales

  $ 6,046             6,046  
 

Communications and programming services

        937     617     1,554  
                   

    6,046     937     617     7,600  
                   

Operating costs and expenses:

                         
 

Cost of sales

    3,832             3,832  
 

Operating

    562     529     458     1,549  
 

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

    519     127     258     904  
 

Depreciation and amortization

    421     16     57     494  
                   

    5,334     672     773     6,779  
                   
     

Operating income (loss)

    712     265     (156 )   821  

Other income (expense):

                         
 

Interest expense

    (468 )   (1 )   (45 )   (514 )
 

Intergroup interest income (expense)

    (3 )   2     1      
 

Share of earnings (losses) of affiliates, net

    95         (70 )   25  
 

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

    (36 )   (1 )   125     88  
 

Gains (losses) on dispositions, net

    394     (2 )   24     416  
 

Other, net

    (38 )   3     70     35  
                   

    (56 )   1     105     50  
                   
   

Earnings (loss) before income taxes

    656     266     (51 )   871  

Income tax (expense) benefit (note 6)

    (151 )   (100 )   14     (237 )
                   
   

Net earnings (loss)

    505     166     (37 )   634  

Less net earnings (loss) attributable to the noncontrolling interests

    32         (3 )   29  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 473     166     (34 )   605  
                   
   

Net earnings (loss)

  $ 505     166     (37 )   634  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    (28 )           (28 )
 

Unrealized holding gains (loss) arising during the period

    63         (28 )   35  
 

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

    (113 )       (13 )   (126 )
 

Share of other comprehensive earnings of equity affiliates

    7             7  
 

Reattribution of other comprehensive earnings between tracking stocks

    (30 )       30      
 

Other

    46             46  
                   
       

Other comprehensive loss

    (55 )       (11 )   (66 )
                   
         

Comprehensive earnings (loss)

    450     166     (48 )   568  

Less comprehensive earnings (loss) attributable to the noncontrolling interests

    43         (3 )   40  
                   

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 407     166     (45 )   528  
                   

8



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

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

Revenue:

                         
 

Net retail sales

  $ 5,594             5,594  
 

Communications and programming services

        900     495     1,395  
                   

    5,594     900     495     6,989  
                   

Operating costs and expenses:

                         
 

Cost of sales

    3,573             3,573  
 

Operating

    519     496     381     1,396  
 

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

    437     164     218     819  
 

Depreciation and amortization

    421     17     62     500  
                   

    4,950     677     661     6,288  
                   
   

Operating income (loss)

    644     223     (166 )   701  

Other income (expense):

                         
 

Interest expense

    (353 )   (2 )   (102 )   (457 )
 

Intergroup interest income (expense)

    (10 )   5     5      
 

Share of losses of affiliates, net

    (47 )   (8 )   (26 )   (81 )
 

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

    (114 )   7     (58 )   (165 )
 

Gains on dispositions, net

        2     96     98  
 

Other, net

    12     (7 )   103     108  
                   

    (512 )   (3 )   18     (497 )
                   
   

Earnings (loss) from continuing operations before income taxes

    132     220     (148 )   204  

Income tax benefit (expense) (note 6)

    (41 )   (73 )   57     (57 )
                   
   

Earnings (loss) from continuing operations

    91     147     (91 )   147  

Earnings from discontinued operations, net of taxes

        85         85  
                   
   

Net earnings (loss)

    91     232     (91 )   232  

Less net earnings attributable to the noncontrolling interests

    26             26  
                   

Net earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 65     232     (91 )   206  
                   

Net earnings (loss)

  $ 91     232     (91 )   232  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    21         2     23  
 

Unrealized holding gains arising during the period

    151     6     33     190  
 

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

        1     (1 )    
 

Share of other comprehensive loss of equity affiliates

    (5 )   (6 )       (11 )
 

Other comprehensive earnings from discontinued operations

        14         14  
 

Other

    34             34  
                   
   

Other comprehensive earnings

    201     15     34     250  
                   
     

Comprehensive earnings (loss)

    292     247     (57 )   482  

Less comprehensive earnings attributable to the noncontrolling interests

    24             24  
                   

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders

  $ 268     247     (57 )   458  
                   

9



STATEMENT OF CASH FLOWS INFORMATION
Nine months ended September 30, 2010
(unaudited)

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

Cash flows from operating activities:

                         
 

Net earnings (loss)

  $ 505     166     (37 )   634  
 

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

                         
   

Depreciation and amortization

    421     16     57     494  
   

Stock-based compensation

    49     14     22     85  
   

Cash payments for stock based compensation

    (20 )   (34 )   (3 )   (57 )
   

Noncash interest expense

    86         1     87  
   

Share of losses (earnings) of affiliates, net

    (95 )       70     (25 )
   

Cash receipts from return on equity investments

    14             14  
   

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

    36     1     (125 )   (88 )
   

(Gains) losses on disposition of assets, net

    (394 )   2     (24 )   (416 )
   

Intergroup tax allocation

    41     89     (130 )    
   

Intergroup tax payments

    (194 )   23     171      
   

Deferred income tax expense

    56     10     39     105  
   

Other noncash charges, net

    23     19     121     163  
   

Changes in operating assets and liabilities

                         
     

Current and other assets

    570     (70 )   (52 )   448  
     

Payables and other current liabilities

    (147 )   (38 )   112     (73 )
                   

Net cash provided by operating activities

    951     198     222     1,371  
                   

Cash flows from investing activities:

                         
 

Cash proceeds from dispositions

    459     30     29     518  
 

Proceeds (payments) related to settlement of financial instruments

    (31 )       750     719  
 

Investments in and loans to cost and equity investees

            (288 )   (288 )
 

Repayment of loan by equity investee

            101     101  
 

Capital expended for property and equipment

    (176 )   (2 )   (8 )   (186 )
 

Net purchases of short term investments

        (149 )   (278 )   (427 )
 

Net (increase) decrease in restricted cash

    1     (20 )   (13 )   (32 )
 

Reattribution of cash

    807     36     (843 )    
 

Other investing activities, net

    (46 )       (7 )   (53 )
                   

Net cash provided (used) by investing activities

    1,014     (105 )   (557 )   352  
                   

Cash flows from financing activities:

                         
 

Borrowings of debt

    2,999         97     3,096  
 

Repayments of debt

    (4,518 )   (3 )   (1,015 )   (5,536 )
 

Intergroup debt borrowings/(repayments)

    (316 )   158     158      
 

Repurchases of Liberty common stock

        (40 )   (587 )   (627 )
 

Other financing activities, net

    (88 )   13     106     31  
                   

Net cash provided (used) by financing activities

    (1,923 )   128     (1,241 )   (3,036 )
                   

Effect of foreign currency rates on cash

    9             9  
                   
 

Net increase (decrease) in cash and cash equivalents

    51     221     (1,576 )   (1,304 )
 

Cash and cash equivalents at beginning of period

    884     794     3,157     4,835  
                   
 

Cash and cash equivalents at end period

  $ 935     1,015     1,581     3,531  
                   

10



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

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

Cash flows from operating activities:

                         
 

Net earnings (loss)

  $ 91     232     (91 )   232  
 

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

                         
   

Earnings from discontinued operations

        (85 )       (85 )
   

Depreciation and amortization

    421     17     62     500  
   

Stock-based compensation

    33     60     5     98  
   

Cash payments for stock based compensation

    (9 )   (2 )       (11 )
   

Noncash interest expense

    63     52         115  
   

Share of losses of affiliates, net

    47     8     26     81  
   

Realized and unrealized losses on financial instruments, net

    114     (7 )   58     165  
   

Gains on disposition of assets, net

        (2 )   (96 )   (98 )
   

Intergroup tax allocation

    116     80     (196 )    
   

Intergroup tax payments

    (168 )   (121 )   289      
   

Other intergroup cash transfers, net

        (53 )   53      
   

Deferred income tax benefit

    (162 )   (10 )   (1 )   (173 )
   

Other noncash charges (credits), net

    (7 )   (44 )   41     (10 )
   

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

                         
     

Current and other assets

    183     (71 )   35     147  
     

Payables and other current liabilities

    (23 )   (78 )   54     (47 )
                   

Net cash provided by operating activities

    699     (24 )   239     914  
                   

Cash flows from investing activities:

                         
 

Cash proceeds from dispositions

    82     2     206     290  
 

Proceeds from settlement of financial instruments

    7     21     1,067     1,095  
 

Investments in and loans to cost and equity investees

    (23 )       (705 )   (728 )
 

Repayment of loan by equity investee

            409     409  
 

Capital expended for property and equipment

    (132 )   (6 )   (10 )   (148 )
 

Net sales of short term investments

            58     58  
 

Net decrease (increase) in restricted cash

    (13 )   1     75     63  
 

Other investing activities, net

    (13 )   (1 )   (26 )   (40 )
                   

Net cash provided by (used in) investing activities

    (92 )   17     1,074     999  
                   

Cash flows from financing activities:

                         
 

Borrowings of debt

    1,124         1,970     3,094  
 

Intergroup debt borrowings

    510     (255 )   (255 )    
 

Repayments of debt

    (2,128 )   (2 )   (1,785 )   (3,915 )
 

Repurchases of Liberty common stock

            (3 )   (3 )
 

Other financing activities, net

    (124 )   49     187     112  
                   

Net cash provided by (used in) financing activities

    (618 )   (208 )   114     (712 )
                   

Effect of foreign currency rates on cash

    (5 )   (8 )       (13 )
                   

Net cash provided by discontinued operations

                         
 

Cash provided by operating activities

        156         156  
 

Cash used by investing activities

        (17 )       (17 )
 

Cash used by financing activities

        (146 )       (146 )
 

Change in available cash held by discontinued operations

        38         38  
                   
   

Net cash provided by discontinued operations

        31         31  
                   
 

Net increase (decrease) in cash and cash equivalents

    (16 )   (192 )   1,427     1,219  
 

Cash and cash equivalents at beginning of period

    832     732     1,496     3,060  
                   
 

Cash and cash equivalents at end period

  $ 816     540     2,923     4,279  
                   

11



Notes to Attributed Financial Information

(unaudited)

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

12



Notes to Attributed Financial Information (Continued)

(unaudited)

 
  Interactive
Group
increase
(decrease)
  Capital Group
increase
(decrease)
 
 
  amounts in millions
 

Assets:

             
 

Cash

  $ 807     (807 )
 

Investment in available-for-sale securities

    (307 )   307  
           
     

Net increase (decrease) to assets

    500     (500 )

Liabilities (including accumulated other comprehensive earnings:

             
   

Exchangeable senior debentures (including accrued interest)

    767     (767 )
   

Deferred tax liabilities

    1,048     (1,048 )
   

Accumulated other comprehensive earnings

    (30 )   30  
           
       

Net increase (decrease) to liabilities

    1,785     (1,785 )

Impact to attributed net assets

  $ (1,285 )   1,285  
           

13



Notes to Attributed Financial Information (Continued)

(unaudited)

14



Notes to Attributed Financial Information (Continued)

(unaudited)

15



Notes to Attributed Financial Information (Continued)

(unaudited)

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

 
  September 30,
2010
  December 31,
2009
 
 
  amounts in millions
 

Capital Group

             
 

Time Warner Inc.(a)

  $ 1,049     997  
 

Time Warner Cable Inc.(a)

    464     356  
 

Sprint Nextel Corporation(a)

    329     260  
 

Motorola, Inc.(a)

    443     403  
 

Viacom, Inc. 

    275     226  
 

Live Nation Entertainment, Inc.(b)

    270      
 

CenturyLink, Inc.(a)

    212     195  
 

Other available-for-sale equity securities(a)

    287     220  
 

SIRIUS XM debt securities(c)

    422     300  
 

Other available-for-sale debt securities

    433     376  
 

Other cost investments and related receivables

    9     22  
           
   

Total attributed Capital Group

    4,193     3,355  
           

Interactive Group

             
 

IAC/InterActiveCorp(d)

    336     492  
 

Other(e)

        242  
           
   

Total attributed Interactive Group

    336     734  
           

Starz Group

             
 

Other

    1     31  
           
   

Total attributed Starz Group

    1     31  
           
     

Consolidated Liberty

  $ 4,530     4,120  
           

(a)
Includes shares pledged as collateral for share borrowing arrangements.

(b)
On January 25, 2010, Live Nation, Inc. and Ticketmaster Entertainment, Inc. completed a merger transaction. Liberty owned approximately 29% of the outstanding common stock of Ticketmaster and received 1.474 shares of Live Nation Entertainment, Inc. for each share of Ticketmaster. As a result of the merger Liberty now owns approximately 15% of combined entity and accounts for the new investment as an AFS security. Liberty recorded the transaction at fair value and recorded a $178 million gain. At the time of the merger that investment was attributed to the Interactive Group. As a result of the reattribution the Live Nation investment is attributed to the Capital Group.

(c)
During the six months ended June 30, 2010 Liberty acquired $150 million of SIRIUS XM 8.75% bonds due April 15, 2015 at par and SIRIUS XM repurchased and retired certain public bonds of which Liberty owned approximately $55 million of principal amounts. Proceeds from the repurchase were approximately $58 million.

(d)
During the three months ended March 31, 2010, Liberty sold approximately 3.7 million shares of IAC in the open market for cash proceeds of approximately $77 million. Liberty also physically settled a derivative by delivering 7.5 million shares of IAC for proceeds of $153 million. The

16



Notes to Attributed Financial Information (Continued)

(unaudited)

(e)
During the three months ended March 31, 2010, QVC sold its investment in GSI Commerce for aggregate cash proceeds of $220 million. QVC recognized a $132 million gain on the sale.

(3)
The following table presents information regarding certain equity method investments:

 
   
   
   
  Share of
earnings (losses)
nine months
ended
September 30,
 
 
  September 30, 2010  
 
  Percentage
ownership
  Carrying
value
  Market
value
 
 
  2010   2009  
 
  dollar amounts in millions
 

Interactive Group

                               
 

Expedia

    25 % $ 698   $ 1,954   $ 85   $ 47  

Capital Group

                               
 

SIRIUS XM(a)

    40 % $   $ 3,111   $ (51 ) $ (14 )

(a)
When Liberty applied its initial equity method accounting on the SIRIUS XM investment, Liberty's basis in the investment was different than the underlying equity in the net assets of SIRIUS XM. As a result, Liberty established an excess basis account and allocated the differences to certain fair value adjustments to the outstanding debt (at the time of our initial investment) and certain intangible assets. Even though SIRIUS XM had net income during the current year the amortization of the excess basis resulted in Liberty recording share of losses. In the third quarter of 2010 these share of losses were accelerated as SIRIUS XM refinanced certain debt which had an associated discount recorded in Liberty's excess basis account. As SIRIUS XM repays certain debt issuances where Liberty has established debt discounts, the extinguishment typically results in a loss on the retirement of Liberty's excess basis account. Liberty has suspended taking losses of our basis in SIRIUS XM below zero as Liberty does not have any funding commitments.

17



Notes to Attributed Financial Information (Continued)

(unaudited)

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

 
  September 30, 2010  
 
  Outstanding
principal
  Carrying
value
 
 
  amounts in millions
 

Capital Group

             
 

3.125% Exchangeable Senior Debentures due 2023

  $ 1,138     1,255  
 

Liberty bank facility

    750     750  
           
   

Total attributed Capital Group debt

    1,888     2,005  
           

Interactive Group

             
 

5.7% Senior Notes due 2013

    324     323  
 

8.5% Senior Debentures due 2029

    287     284  
 

8.25% Senior Debentures due 2030

    504     501  
 

4% Exchangeable Senior Debentures due 2029

    469     249  
 

3.75% Exchangeable Senior Debentures due 2030

    460     247  
 

3.5% Exchangeable Senior Debentures due 2031

    490     319  
 

3.25% Exchangeable Senior Debentures due 2031

    541     351  
 

QVC 7.125% Senior Secured Notes due 2017

    500     500  
 

QVC 7.5% Senior Secured Notes due 2019

    1,000     984  
 

QVC 7.375% Senior Secured Notes due 2020

    500     500  
 

QVC bank credit facilities

    1,080     1,080  
 

Other subsidiary debt

    77     77  
           
   

Total attributed Interactive Group debt

    6,232     5,415  
           

Starz Group

             
 

Subsidiary debt

    99     99  
           
   

Total attributed Starz Group debt

    99     99  
           

Total debt

  $ 8,219     7,519  
           
(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 compensation is allocated directly to the tracking stock groups based on the underlying stock of the options or other equity awards. 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:

 
  Nine months
ended
September 30,
 
 
  2010   2009  
 
  amounts in millions
 

Interactive Group

  $ 37     18  

Starz Group

  $ 14     49  

18



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.

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

19




QuickLinks

BALANCE SHEET INFORMATION September 30, 2010 (unaudited)
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS INFORMATION Nine months ended September 30, 2010 (unaudited)
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION Nine months ended September 30, 2009 (unaudited)
STATEMENT OF CASH FLOWS INFORMATION Nine months ended September 30, 2010 (unaudited)
STATEMENT OF CASH FLOWS INFORMATION Nine months ended September 30, 2009 (unaudited)
Notes to Attributed Financial Information (unaudited)