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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 LEI 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 LEI 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 LEI Split Off, the Liberty Entertainment group was renamed the Liberty Starz group.

        During the second quarter of 2010, Liberty announced that its board of directors had authorized its management to proceed with a plan to separate its Liberty Capital and Liberty Starz tracking stock groups from its Liberty Interactive tracking stock group.

        The proposed split-off will be effected by the redemption of all the outstanding shares of Liberty Capital tracking stock and Liberty Starz tracking stock in exchange for shares in a newly formed company ("Splitco"). Splitco will hold all the assets and be subject to all the liabilities currently attributed to the Liberty Capital and Liberty Starz tracking stock groups, other than approximately $264 million of cash, exchangeable debt in the principal amount of $1.1 billion and the stock into which such debt is exchangeable which were reattributed from Liberty Capital to Liberty Interactive in February of 2011. The common stock of Splitco will be divided into two tracking stock groups, one tracking assets that are currently attributed to the Liberty Capital group ("Splitco Capital") and the other tracking assets that are currently attributed to the Liberty Starz group ("Splitco Starz"). In the redemption, holders of Liberty Capital tracking stock will receive shares of Splitco Capital tracking stock and holders of Liberty Starz tracking stock will receive shares of Splitco Starz tracking stock. After the redemption, Splitco and Liberty will be separate public companies.

1


        The proposed split-off is intended to be tax-free to stockholders of Liberty and its completion will be subject to various conditions including the receipt of IRS private letter rulings, the opinions of tax counsel and required governmental approvals. The redemption that is necessary to effect the proposed split-off will require the affirmative vote of (i) a majority of the voting power of the outstanding shares of Liberty Capital tracking stock and (ii) a majority of the voting power of the outstanding shares of Liberty Starz tracking stock, in each case, present and voting at a meeting called to consider the redemption. On August 6, 2010, Liberty announced that it had filed suit in the Delaware Court of Chancery against the trustee under the indenture governing the public indebtedness issued by the Company's subsidiary, Liberty Media LLC. The lawsuit was filed in response to allegations made by a law firm purporting to represent a holder with a large position in this public indebtedness. The lawsuit seeks a declaratory judgment by the court that the proposed split-off will not constitute a disposition of "all or substantially all" of the assets of Liberty Media LLC, as those terms are used in the indenture, as well as related injunctive relief. Resolution of the subject matter of this lawsuit is a condition to Liberty completing the proposed split-off. Subject to the satisfaction of the conditions described above, Liberty intends to complete the proposed split-off in the first half of 2011.

        The following tables present our assets, liabilities, revenue, expenses and cash flows as of and for the years ended December 31, 2010, 2009 and 2008. 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, 2010, 2009 and 2008 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, 2008 and does not reflect the impacts of the TWX 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.

2



SUMMARY ATTRIBUTED FINANCIAL DATA

Interactive Group

 
  December 31,  
 
  2010   2009   2008  
 
  amounts in millions
 

Summary Balance Sheet Data:

                   

Current assets

  $ 3,128     3,379     3,282  

Cost investments

  $ 1     734     739  

Equity investments

  $ 949     895     901  

Total assets

  $ 16,294     17,343     17,487  

Long-term debt, including current portion

  $ 5,180     6,073     7,131  

Deferred income tax liabilities, noncurrent

  $ 2,582     1,939     1,999  

Attributed net assets

  $ 6,287     6,794     6,303  

 

 
  Years ended December 31,  
 
  2010   2009   2008  
 
  amounts in millions
 

Summary Operations Data:

                   

Revenue

  $ 8,932     8,305     8,079  

Cost of goods sold

    (5,705 )   (5,332 )   (5,224 )

Operating expenses

    (799 )   (752 )   (748 )

Selling, general and administrative expenses(1)

    (749 )   (614 )   (584 )

Depreciation and amortization

    (571 )   (566 )   (561 )

Impairment of long-lived assets

            (56 )
               
   

Operating income

    1,108     1,041     906  

Interest expense

   
(582

)
 
(496

)
 
(473

)

Share of earnings (losses) of affiliates

    114     (14 )   (1,192 )

Other than temporary declines in fair value of investments

            (440 )

Other income (expense), net

    458     (80 )   (39 )

Income tax benefit (expense)

    (179 )   (154 )   493  
               
 

Net earnings (loss)

    919     297     (745 )

Less net earnings attributable to the noncontrolling interests

    48     39     36  
               

Net earnings (loss) attributable to Liberty Media Corporation stockholders

  $ 871     258     (781 )
               

(1)
Includes stock-based compensation of $67 million, $47 million and $32 million for the years ended December 31, 2010, 2009 and 2008, respectively.

3



SUMMARY ATTRIBUTED FINANCIAL DATA

Starz Group

 
  December 31,  
 
  2010   2009   2008  
 
  amounts in millions
 

Summary Balance Sheet Data:

                   

Current assets

  $ 1,746     1,544     1,476  

Assets of discontinued operations

  $         14,211  

Total assets

  $ 2,539     2,198     16,352  

Long-term debt, including current portion

  $ 105     48     52  

Attributed net assets

  $ 2,246     2,040     12,180  

 

 
  Years ended December 31,  
 
  2010   2009   2008  
 
  amounts in millions
 

Summary Operations Data:

                   

Revenue

  $ 1,342     1,204     1,124  

Operating expenses

    (773 )   (685 )   (682 )

Selling, general and administrative expenses(1)

    (220 )   (221 )   (167 )

Depreciation and amortization

    (18 )   (21 )   (26 )

Impairment of long-lived assets

    (4 )   (5 )   (1,262 )
               
   

Operating income (loss)

    327     272     (1,013 )

Interest expense

   
(2

)
 
(2

)
 
(22

)

Share of losses of affiliates

        (10 )   (7 )

Realized and unrealized gains (losses) on financial instruments

    (2 )   8     272  

Other income, net

    4     31     1  

Income tax expense

    (121 )   (86 )   (191 )
               
 

Earnings (loss) from continuing operations

    206     213     (960 )

Earnings from discontinued operations

        5,864     5,812  
               

Net earnings attributable to Liberty Media Corporation stockholders

  $ 206     6,077     4,852  
               

(1)
Includes stock-based compensation of $52 million, $76 million and $15 million for the years ended December 31, 2010, 2009 and 2008, respectively.

4



SUMMARY ATTRIBUTED FINANCIAL DATA

Capital Group

 
  December 31,  
 
  2010   2009   2008  
 
  amounts in millions
 

Summary Balance Sheet Data:

                   

Current assets

  $ 1,721     4,087     2,973  

Cost investments

  $ 4,483     3,355     2,118  

Total assets

  $ 8,189     9,373     8,361  

Long-term debt, including current portion

  $ 2,033     3,653     3,063  

Deferred income tax liabilities, noncurrent

  $     730     1,166  

Attributed net assets

  $ 2,780     1,275     1,121  

 

 
  Years ended
December 31,
 
 
  2010   2009   2008  
 
  amounts in millions
 

Summary Operations Data:

                   

Revenue

  $ 708     649     614  

Operating expenses

    (511 )   (486 )   (515 )

Selling, general and administrative expenses(1)

    (305 )   (343 )   (398 )

Depreciation and amortization

    (72 )   (79 )   (101 )

Legal Settlement

    48          

Impairment of long-lived assets

        (4 )   (251 )
               
   

Operating loss

    (132 )   (263 )   (651 )

Interest expense

    (63 )   (130 )   (172 )

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

    262     (42 )   (292 )

Gain on dispositions, net

    38     215     16  

Other income, net

    28     91     75  

Income tax benefit

    679     256     440  
               
 

Earnings (loss) from continuing operations

    812     127     (584 )

Earnings from discontinued operations, net of taxes

             
               
   

Net earnings (loss)

    812     127     (584 )

Less net earnings attributable to the noncontrolling interests

    (3 )       8  
               

Net earnings (loss) attributable to Liberty Media Corporation stockholders

  $ 815     127     (592 )
               

(1)
Includes stock-based compensation of $31 million, $5 million and $2 million for the years ended December 31, 2010, 2009 and 2008, respectively.

5



BALANCE SHEET INFORMATION

December 31, 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

  $ 1,089     878     1,212         3,179  
 

Trade and other receivables, net

    885     227     30         1,142  
 

Inventory, net

    1,069                 1,069  
 

Program rights

        411             411  
 

Current deferred tax assets

        10         (10 )    
 

Short term marketable securities

        175     334         509  
 

Other current assets

    85     45     145     (30 )   245  
                       
   

Total current assets

    3,128     1,746     1,721     (40 )   6,555  
                       

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

    1     67     4,483         4,551  

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

    949         91         1,040  

Property and equipment, net

    1,038     109     138         1,285  

Goodwill

    5,983     132     200         6,315  

Trademarks

    2,513                 2,513  

Other non-amortizable intangibles

            153         153  

Intangible assets subject to amortization, net

    2,595     20     144         2,759  

Deferred tax assets

            382     (382 )    

Other assets, at cost, net of accumulated amortization

    87     465     877         1,429  
                       
   

Total assets

  $ 16,294     2,539     8,189     (422 )   26,600  
                       

Liabilities and Equity

                               

Current liabilities:

                               
 

Accounts payable

  $ 630     8     13         651  
 

Accrued liabilities

    752     185     58         995  
 

Intergroup payable (receivable)

    85     (93 )   8          
 

Financial instruments

    42     3     1,219         1,264  
 

Current portion of debt (note 4)

    493     37             530  
 

Deferred tax liabilities

    152         722     (10 )   864  
 

Deferred revenue

    107     16     224         347  
 

Other current liabilities

    82     12     24     (30 )   88  
                       
   

Total current liabilities

    2,343     168     2,268     (40 )   4,739  
                       

Long-term debt (note 4)

    4,687     68     2,033         6,788  

Long-term financial instruments

    86         8         94  

Deferred tax liabilities (note 6)

    2,582     11         (382 )   2,211  

Deferred revenue

    14         846         860  

Other liabilities

    166     46     254         466  
                       
   

Total liabilities

    9,878     293     5,409     (422 )   15,158  

Equity/Attributed net assets

    6,287     2,246     2,780         11,313  

Noncontrolling interests in equity of subsidiaries

    129                 129  
                       
   

Total liabilities and equity

  $ 16,294     2,539     8,189     (422 )   26,600  
                       

6



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 )    
 

Short term marketable securities

            35         35  
 

Other current assets

    65     2     66         133  
                       
   

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  

Other non-amortizable intangibles

            153         153  

Intangible assets subject to amortization, net

    2,840     2     185         3,027  

Other assets, at cost, net of accumulated amortization

    82     377     1,077         1,536  
                       
   

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  
 

Deferred tax liabilities

            1,530     (283 )   1,247  
 

Deferred revenue

    100     2     35         137  
 

Other current liabilities

    59     163     1         223  
                       
   

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 tax liabilities (note 6)

    1,939     6     730         2,675  

Deferred revenue

    5     2     1,033         1,040  

Other liabilities

    193     52     283         528  
                       
   

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  
                       

7



STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION

Year ended December 31, 2010

(unaudited)

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

Revenue:

                         
 

Net retail sales

  $ 8,932             8,932  
 

Communications and programming services

        1,342     708     2,050  
                   

    8,932     1,342     708     10,982  
                   

Operating costs and expenses:

                         
 

Cost of sales

    5,705             5,705  
 

Operating

    799     773     511     2,083  
 

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

    749     220     305     1,274  
 

Depreciation and amortization

    571     18     72     661  
 

Legal settlement

            (48 )   (48 )
 

Impairment of long-lived assets

        4         4  
                   

    7,824     1,015     840     9,679  
                   
   

Operating income (loss)

    1,108     327     (132 )   1,303  

Other income (expense):

                         
 

Interest expense

    (582 )   (2 )   (63 )   (647 )
 

Dividend and interest income

    4     2     86     92  
 

Intergroup interest income (expense)

    (3 )   2     1      
 

Share of earnings (losses) of affiliates, net

    114         (64 )   50  
 

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

    (28 )   (2 )   262     232  
 

Gains (losses) on dispositions, net

    533     (2 )   38     569  
 

Loss on early extinguishment of debt

    (39 )           (39 )
 

Other, net

    (9 )   2     5     (2 )
                   

    (10 )       265     255  
                   
   

Earnings before income taxes

    1,098     327     133     1,558  

Income tax benefit (expense) (note 6)

    (179 )   (121 )   679     379  
                   
   

Net earnings from continuing operations

    919     206     812     1,937  

Earnings from discontinued operations, net of taxes

                 
                   
   

Net earnings

    919     206     812     1,937  

Less net earnings (loss) attributable to the noncontrolling interests

    48         (3 )   45  
                   

Net earnings attributable to Liberty Media Corporation stockholders

  $ 871     206     815     1,892  
                   

Net earnings

  $ 919     206     812     1,937  
                   

Other comprehensive earnings (loss), net of taxes:

                         
 

Foreign currency translation adjustments

    (37 )           (37 )
 

Unrealized holding gains arising during the period

    70         9     79  
 

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

    (198 )       (21 )   (219 )
 

Share of other comprehensive earnings of equity affiliates

    7             7  
 

Other

    58         1     59  
 

Reattribution of other comprehensive income between tracking stocks

    (30 )       30      
                   
   

Other comprehensive earnings

    (130 )       19     (111 )
                   
     

Comprehensive earnings

    789     206     831     1,826  

Less comprehensive earnings (losses) attributable to the noncontrolling interests

    63         (3 )   60  
                   

Comprehensive earnings attributable to Liberty Media Corporation stockholders

  $ 726     206     834     1,766  
                   

8



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  
                   

9



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  
                   

10



STATEMENT OF CASH FLOWS INFORMATION

Year ended December 31, 2010

(unaudited)

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

Cash flows from operating activities:

                         
 

Net earnings

  $ 919     206     812     1,937  
 

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

                         
   

Depreciation and amortization

    571     18     72     661  
   

Impairment of long-lived assets

        4         4  
   

Stock-based compensation

    67     52     31     150  
   

Cash payments for stock based compensation

    (20 )   (196 )   (8 )   (224 )
   

Noncash interest expense

    90             90  
   

Share of losses (earnings) of affiliates, net

    (114 )       64     (50 )
   

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

    28     2     (262 )   (232 )
   

Losses (gains) on disposition of assets, net

    (533 )   2     (38 )   (569 )
   

Return on investments

    19         2     21  
   

Deferred income tax expense (benefit)

    (38 )   64     (846 )   (820 )
   

Other noncash charges, net

    24     40     147     211  
   

Intergroup tax allocation

    112     54     (166 )    
   

Intergroup tax payments

    (162 )   20     142      
   

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

                         
     

Current and other assets

    247     16     (54 )   209  
     

Payables and other current liabilities

    46     (169 )   112     (11 )
                   

Net cash provided by operating activities

    1,256     113     8     1,377  
                   

Cash flows from investing activities:

                         
 

Cash proceeds from dispositions

    459     30     41     530  
 

Proceeds (payments) on settlement of financial instruments

    (28 )       751     723  
 

Cash paid for acquisitions, net of cash acquired

    (33 )           (33 )
 

Cash received in exchange transaction

    218             218  
 

Investments in and loans to cost and equity investees

    (1 )       (405 )   (406 )
 

Repayment of loan by equity investee

            200     200  
 

Capital expended for property and equipment

    (258 )   (7 )   (9 )   (274 )
 

Net purchases of short term and other marketable securities

        (243 )   (299 )   (542 )
 

Reattribution of cash between tracking stocks

    807     36     (843 )    
 

Net decrease (increase) in restricted cash

    2     (27 )   (12 )   (37 )
 

Other investing activities, net

    (15 )       (13 )   (28 )
                   

Net cash provided (used) by investing activities

    1,151     (211 )   (589 )   351  
                   

Cash flows from financing activities:

                         
 

Borrowings of debt

    2,974     36     96     3,106  
 

Repayments of debt

    (4,791 )   (32 )   (1,015 )   (5,838 )
 

Repurchases of Liberty common stock

        (40 )   (714 )   (754 )
 

Settlement of financial instruments

    (47 )   (3 )   (13 )   (63 )
 

Premium proceeds from financial instruments

    47         114     161  
 

Repayment of intergroup loan

    (316 )   158     158      
 

Distributuion to noncontrolling interests, net

    (66 )           (66 )
 

Other financing activities, net

    (17 )   63     10     56  
                   

Net cash provided (used) by financing activities

    (2,216 )   182     (1,364 )   (3,398 )
                   

Effect of foreign currency rates on cash

    14             14  
                   
 

Net increase (decrease) in cash and cash equivalents

    205     84     (1,945 )   (1,656 )
 

Cash and cash equivalents at beginning of year

    884     794     3,157     4,835  
                   
 

Cash and cash equivalents at end year

  $ 1,089     878     1,212     3,179  
                   

11



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      
 

Distribution to noncontrolling interests, net

    (57 )           (57 )
 

Other financing activities, net

    (64 )   99     21     56  
                   

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  
                   

12



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 )        
 

Distribution of noncontrolling interests, net

    (17 )           (17 )
 

Other financing activities, net

        15     (8 )   7  
                   
       

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  
                   

13


\


Notes to Attributed Financial Information

(unaudited)

(1)
The assets attributed to our Interactive Group as of December 31, 2010 include our consolidated subsidiaries QVC, Inc., Provide Commerce, Inc., Backcountry.com, Inc., Bodybuilding.com, LLC and Celebrate Interactive Holdings, Inc., and our interests in Expedia, Inc., HSN, Inc., Interval Leisure Group, 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 Celebrate. 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.

14



Notes to Attributed Financial Information

(unaudited)

15



Notes to Attributed Financial Information

(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  
           

16



Notes to Attributed Financial Information

(unaudited)

17



Notes to Attributed Financial Information

(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,  
 
  2010   2009  
 
  amounts
in millions

 

Capital Group

             
 

Time Warner Inc.(a)

  $ 1,101     997  
 

Time Warner Cable Inc.(a)

    567     356  
 

Sprint Nextel Corporation(a)

    301     260  
 

Motorola, Inc.(a)

    471     403  
 

Live Nation(b)

    389      
 

Viacom, Inc. 

    301     226  
 

CenturyTel, Inc./Embarq Corporation(a)

    248     195  
 

Other available-for-sale equity securities(a)

    308     220  
 

SIRIUS XM debt securities(c)

    384     300  
 

Other available-for-sale debt securities

    404     376  
 

Other cost investments and related receivables

    9     22  
           
   

Total attributed Capital Group

    4,483     3,355  
           

Interactive Group

             
 

IAC/InterActiveCorp(d)

        492  
 

Other(e)

    1     242  
           
   

Total attributed Interactive Group

    1     734  
           

Starz Group

             
 

Other

    67     31  
           
   

Total attributed Starz Group

    67     31  
           
     

Consolidated Liberty

  $ 4,551     4,120  
           

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

(b)
On January 25, 2010, Live Nation and Ticketmaster Entertainment, Inc. ("Ticketmaster") completed a merger transaction. Liberty owned approximately 29% of the outstanding common stock of Ticketmaster and received 1.474 shares of Live Nation for each share of

18



Notes to Attributed Financial Information

(unaudited)

(c)
During the first quarter of 2010, Liberty purchased an additional $150 million of SIRIUS XM 8.75% debt securities due April 15, 2015 at par. During the second quarter of 2010 SIRIUS XM repurchased and retired certain public bonds of which Liberty owned approximately $55 million of the principal amounts. During the fourth quarter SIRIUS XM repurchased and retired additional outstanding public bonds of which Liberty owned approximately $87 million in principal. Additionally, Liberty purchased $50 million of SIRIUS XM 7.625% debt securities due November 1, 2018 at par.

(d)
During the year ended December 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 combined gain on the disposition of IAC shares recorded in gains (losses) on dispositions, net was $53 million. Additionally, Liberty exchanged its remaining ownership interest in IAC for a subsidiary of IAC that owns Evite and Gifts.com along with $218 million in cash. The exchange resulted in the recognition of $165 million of gain on disposition.

(e)
During the year ended December 31, 2010, QVC sold its investment in GSI Commerce for aggregate cash proceeds of $220 million. QVC recognized a $105 million gain on the sale.
(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, 2010  
 
  Percentage
ownership
  Carrying
value
  Market
value
 
 
  2010   2009   2008  
 
  dollar amounts in millions
 

Interactive Group

                                     
 

Expedia(a)

    25 % $ 710     1,737     103     72     (726 )

Capital Group

                                     
 

Sirius(b)

    40 % $ 5     4,266     (41 )   (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)
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

19



Notes to Attributed Financial Information

(unaudited)

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

 
  December 31, 2010  
 
  Outstanding
principal
  Carrying
value
 
 
  amounts in millions
 

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     265  
 

3.75% Exchangeable Senior Debentures due 2030

    460     253  
 

3.25% Exchangeable Senior Debentures due 2031

    541     376  
 

3.5% Exchangeable Senior Debentures due 2031

    490     329  
 

QVC 7.125% Senior Secured Notes due 2017

    500     500  
 

QVC 7.5% Senior Secured Notes due 2019

    1,000     985  
 

QVC 7.375% Senior Secured Notes due 2020

    500     500  
 

QVC bank credit facilities

    785     785  
 

Other debt

    79     79  
           
   

Total Interactive Group debt

    5,939     5,180  
           

Capital Group

             
 

3.125% Exchangeable Senior Debentures due 2023

    1,138     1,283  
 

Liberty bank facility

    750     750  
           
   

Total Capital Group debt

    1,888     2,033  
           

Starz Group

             
 

Subsidiary debt

    105     105  
           

Total debt

  $ 7,932     7,318  
           

20



Notes to Attributed Financial Information

(unaudited)

(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,
 
 
  2010   2009   2008  
 
  amounts in millions
 

Interactive Group

  $ 61     26     19  

Starz Group

  $ 21     46     11  
(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,
 
 
  2010   2009   2008  
 
  amounts in millions
 

Current:

                   
 

Federal

  $ (112 )   (223 )   (220 )
 

State and local

    6     (49 )   (19 )
 

Foreign

    (111 )   (85 )   (96 )
               

    (217 )   (357 )   (335 )
               

Deferred:

                   
 

Federal

    8     173     708  
 

State and local

    16     27     110  
 

Foreign

    14     3     10  
               

    38     203     828  
               

Income tax benefit (expense)

  $ (179 )   (154 )   493  
               

21



Notes to Attributed Financial Information

(unaudited)

 
  Years ended
December 31,
 
 
  2010   2009   2008  
 
  amounts in millions
 

Computed expected tax benefit (expense)

  $ (385 )   (158 )   433  

Nontaxable exchange of investments for a subsidiary

    112          

State and local income taxes, net of federal income taxes

    14     (20 )   57  

Foreign taxes, net of foreign tax credits

    48     (4 )   28  

Change in valuation allowance affecting tax expense

            15  

Nontaxable gains (losses) related to the company's common stock

    27     20     (57 )

Recognition of tax benefits (expense) not previously recognized, net

            19  

Other, net

    5     8     (2 )
               
 

Income tax benefit (expense)

  $ (179 )   (154 )   493  
               

 
  December 31,  
 
  2010   2009  
 
  amounts
in millions

 

Deferred tax assets:

             
 

Net operating and capital loss carryforwards

  $ 40     36  
 

Accrued stock compensation

    33     17  
 

Other accrued liabilities

    154     169  
 

Deferred revenue

    9     16  
 

Investments

    47     124  
 

Other future deductible amounts

    105     90  
           
   

Deferred tax assets

    388     452  
 

Valuation allowance

    (1 )   (1 )
           
   

Net deferred tax assets

    387     451  
           

Deferred tax liabilities:

             
 

Intangible assets

    1,718     1,881  
 

Discount on exchangeable debentures

    995     225  
 

Deferred tax gain on debt retirements

    313      
 

Other

    95     89  
           
   

Deferred tax liabilities

    3,121     2,195  
           

Net deferred tax liabilities

  $ 2,734     1,744  
           

22



Notes to Attributed Financial Information

(unaudited)

Starz Group

        The Starz Group's income tax benefit (expense) consists of:

 
  Years ended
December 31,
 
 
  2010   2009   2008  
 
  amounts in millions
 

Current:

                   
 

Federal

  $ (53 )   (83 )   (50 )
 

State and local

    (1 )   (9 )   (9 )
 

Foreign

    (3 )   (2 )   (1 )
               

    (57 )   (94 )   (60 )
               

Deferred:

                   
 

Federal

    (56 )   4     (116 )
 

State and local

    (8 )   4     (15 )
 

Foreign

             
               

    (64 )   8     (131 )
               

Income tax expense

  $ (121 )   (86 )   (191 )
               

 
  Years ended
December 31,
 
 
  2010   2009   2008  
 
  amounts in millions
 

Computed expected tax benefit (expense)

  $ (114 )   (104 )   270  

State and local income taxes, net of federal income taxes

    (6 )   (4 )   (16 )

Change in valuation allowance affecting tax expense

    1     3     (17 )

Impairment of goodwill not deductible for tax purposes

            (442 )

Excess tax deductions over book expense

        19      

Other, net

    (2 )       14  
               
 

Income tax expense

  $ (121 )   (86 )   (191 )
               

23



Notes to Attributed Financial Information

(unaudited)

 
  December 31,  
 
  2010   2009  
 
  amounts
in millions

 

Deferred tax assets:

             
 

Net operating and capital loss carryforwards

  $ 4     3  
 

Accrued stock compensation

    23     87  
 

Intangible assets

    14     7  
 

Other

    7     8  
           
   

Deferred tax assets

    48     105  
 

Valuation allowance

    (4 )   (5 )
           
   

Net deferred tax assets

    44     100  
           

Deferred tax liabilities:

             
 

Other

    45     18  
           
   

Deferred tax liabilities

    45     18  
           

Net deferred tax liabilities (asset)

  $ 1     (82 )
           

Capital Group

        The Capital Group's income tax benefit (expense) consists of:

 
  Years ended
December 31,
 
 
  2010   2009   2008  
 
  amounts in millions
 

Current:

                   
 

Federal

  $ (158 )   287     128  
 

State and local

    (7 )   22     9  
 

Foreign

    (2 )       3  
               

    (167 )   309     140  
               

Deferred:

                   
 

Federal

    777     (69 )   266  
 

State and local

    69     16     34  
 

Foreign

             
               

    846     (53 )   300  
               

Income tax benefit

  $ 679     256     440  
               

24



Notes to Attributed Financial Information

(unaudited)

 
  Years ended
December 31,
 
 
  2010   2009   2008  
 
  amounts in millions
 

Computed expected tax benefit (expense)

  $ (46 )   45     359  

State and local income taxes, net of federal income taxes

    40     20     28  

Change in valuation allowance affecting tax expense

    6     6     (3 )

Disposition of consolidated subsidiaries

    462          

Settlements with taxing authorities

    211          

Recognition of tax benefits not previously recognized, net

    5     201     56  

Expenses not deductible for income tax purposes

    (6 )   (12 )    

Other, net

    7     (4 )    
               

Income tax benefit

  $ 679     256     440  
               

 
  December 31,  
 
  2010   2009  
 
  amounts
in millions

 

Deferred tax assets:

             
 

Net operating and capital loss carryforwards

  $ 586     135  
 

Accrued liabilities

    58     66  
 

Discount on exchangeable debentures

    48      
 

Deferred revenue

    408     403  
 

Other

    61     62  
           
   

Deferred tax assets

    1,161     666  
 

Valuation allowance

    (5 )   (11 )
           
   

Net deferred tax assets

    1,156     655  
           

Deferred tax liabilities:

             
 

Investments

    1,340     1,660  
 

Intangible assets

    120     147  
 

Discount on exchangeable debentures

        738  
 

Deferred gain on debt retirements

    8     316  
 

Other

    28     54  
           
   

Deferred tax liabilities

    1,496     2,915  
           

Net deferred tax liabilities

  $ 340     2,260  
           
(7)
The Liberty Interactive Stock, the Liberty Starz Stock and the Liberty Capital Stock have voting and conversion rights under our restated 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

25



Notes to Attributed Financial Information

(unaudited)

26




QuickLinks

Unaudited Attributed Financial Information for Tracking Stock Groups
SUMMARY ATTRIBUTED FINANCIAL DATA
SUMMARY ATTRIBUTED FINANCIAL DATA
SUMMARY ATTRIBUTED FINANCIAL DATA
BALANCE SHEET INFORMATION December 31, 2010 (unaudited)
BALANCE SHEET INFORMATION December 31, 2009 (unaudited)
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION Year ended December 31, 2010 (unaudited)
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION Year ended December 31, 2009 (unaudited)
STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION Year ended December 31, 2008 (unaudited)
STATEMENT OF CASH FLOWS INFORMATION Year ended December 31, 2010 (unaudited)
STATEMENT OF CASH FLOWS INFORMATION Year ended December 31, 2009 (unaudited)
STATEMENT OF CASH FLOWS INFORMATION Year ended December 31, 2008 (unaudited)
Notes to Attributed Financial Information (unaudited)