10-Q 1 lstza930201110q.htm QUARTERLY REPORT ON FORM 10-Q SEPTEMBER 30, 2011 LSTZA 9.30.2011 10Q
QuickLinks -- Click here to rapidly navigate through this document

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2011
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                to            
Commission File Number 001-35294
LIBERTY MEDIA CORPORATION
(Exact name of Registrant as specified in its charter)
State of Delaware
(State or other jurisdiction of
incorporation or organization)
 
20-8988475
(I.R.S. Employer
Identification No.)
12300 Liberty Boulevard
 
 
Englewood, Colorado
(Address of principal executive offices)
 
80112
(Zip Code)
Registrant's telephone number, including area code: (720) 875-5400
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ý
 
Accelerated filer o
 
Non-accelerated filer o
(do not check if smaller
reporting company)
 
Smaller reporting company o
Indicate by check mark whether the Registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes o    No ý
The number of outstanding shares of Liberty Media Corporation's common stock as of October 31, 2011 was:
 
Series A
 
Series B
Liberty Capital common stock
71,668,160

 
7,342,191

Liberty Starz common stock
48,428,683

 
2,938,005

 



QuickLinks -- Click here to rapidly navigate through this document

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)
 
September 30, 2011
 
December 31, 2010
 
amounts in millions
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
1,937

 
2,090

Trade and other receivables, net
299

 
257

Program rights
476

 
411

Short term marketable securities
275

 
509

Restricted cash (note 9)
695

 
53

Receivable from Liberty Interactive
44

 
85

Other current assets
41

 
137

Total current assets
3,767

 
3,542

Investments in available-for-sale securities and other cost investments, including $1,076 million and $1,219 million pledged as collateral for share borrowing arrangements (note 6)
2,782

 
4,550

Investments in affiliates, accounted for using the equity method (note 7)
507

 
91

Property and equipment, at cost
499

 
520

Accumulated depreciation
(280
)
 
(273
)
 
219

 
247

Intangible assets not subject to amortization
475

 
485

Intangible assets subject to amortization, net
139

 
164

Program rights
325

 
323

Deferred costs
243

 
345

Deferred tax assets
238

 
371

Other assets, at cost, net of accumulated amortization
220

 
674

Total assets
$
8,915

 
10,792


(continued)


See accompanying notes to condensed consolidated financial statements.
I-1

QuickLinks -- Click here to rapidly navigate through this document

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Continued)
(unaudited)
 
September 30, 2011
 
December 31, 2010
 
amounts in millions
Liabilities and Equity
 
 
 
Current liabilities:
 
 
 
    Accounts payable
$
13

 
21

    Accrued liabilities
272

 
243

    Financial instruments (note 8)
1,085

 
1,222

    Current portion of debt (note 9)
754

 
37

    Deferred income tax liabilities
742

 
712

    Deferred revenue
74

 
240

    Other current liabilities
72

 
36

        Total current liabilities
3,012

 
2,511

Long-term debt (note 9)
37

 
2,101

Deferred revenue
531

 
846

Other liabilities
257

 
308

            Total liabilities
3,837

 
5,766

Stockholders' equity:
 
 
 
    Preferred stock, $.01 par value. Authorized 50,000,000 shares; no shares issued

 

    Series A Liberty Capital common stock, $.01 par value. Authorized 2,000,000,000 shares; issued and outstanding 72,429,959 shares at September 30, 2011
1

 

Series B Liberty Capital common stock, $.01 par value. Authorized 75,000,000 shares; issued and outstanding 7,342,191 shares at September 30, 2011

 

Series C Liberty Capital common stock, $.01 par value. Authorized 2,000,000,000 shares; zero issued and outstanding shares at September 30, 2011

 

Series A Liberty Starz common stock, $.01 par value. Authorized 4,000,000,000 shares; issued and outstanding 49,234,478 shares at September 30, 2011

 

Series B Liberty Starz common stock, $.01 par value. Authorized 150,000,000 shares; issued and outstanding 2,938,005 shares at September 30, 2011

 

Series C Liberty Starz common stock, $.01 par value. Authorized 4,000,000,000 shares; zero issued and outstanding shares at September 30, 2011

 

    Additional paid-in capital
3,818

 

    Parent's investment

 
4,117

    Accumulated other comprehensive earnings, net of taxes
32

 
54

    Retained earnings
1,233

 
855

        Total stockholders' equity
5,084

 
5,026

Noncontrolling interests in equity of subsidiaries
(6
)
 

        Total equity
5,078

 
5,026

Commitments and contingencies (note 10)

 

        Total liabilities and equity
$
8,915

 
10,792


See accompanying notes to condensed consolidated financial statements.
I-2

QuickLinks -- Click here to rapidly navigate through this document

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements Of Operations
(unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions,
except per share amounts
Revenue:
 
 
 
 
 
 
 
    Communications and programming services
$
540

 
570

 
2,051

 
1,554

Operating costs and expenses:
 
 
 
 
 
 
 
    Operating
323

 
349

 
1,048

 
987

    Selling, general and administrative, including stock-based compensation (note 3)
91

 
120

 
290

 
385

    Legal settlement

 

 
(7
)
 

    Depreciation and amortization
15

 
27

 
56

 
73

 
429

 
496

 
1,387

 
1,445

        Operating income
111

 
74

 
664

 
109

Other income (expense):
 
 
 
 
 
 
 
    Interest expense
(3
)
 
(12
)
 
(13
)
 
(46
)
    Liberty Interactive interest income (expense)

 

 

 
3

    Share of earnings (losses) of affiliates, net (note 7)
53

 
(59
)
 
3

 
(70
)
  Realized and unrealized gains (losses) on financial instruments, net (note 8)
(257
)
 
70

 
(81
)
 
124

    Gains (losses) on dispositions, net
1

 
(2
)
 
(1
)
 
22

    Other, net
10

 
30

 
61

 
73

 
(196
)
 
27

 
(31
)
 
106

 Earnings (loss) from continuing operations before income taxes
(85
)
 
101

 
633

 
215

Income tax (expense) benefit
42

 
(27
)
 
(256
)
 
(86
)
        Net earnings (loss)
(43
)
 
74

 
377

 
129

Less net earnings (loss) attributable to the noncontrolling interests
(1
)
 

 
(1
)
 
(3
)
Net earnings (loss) attributable to Liberty stockholders
$
(42
)
 
74

 
378

 
132

Net earnings (loss) attributable to Liberty stockholders:
 
 
 
 
 
 
 
Liberty Capital common stock
$
(103
)
 
26

 
198

 
(34
)
Liberty Starz common stock
61

 
48

 
180

 
166

 
$
(42
)
 
74

 
378

 
132


(continued)



See accompanying notes to condensed consolidated financial statements.
I-3

QuickLinks -- Click here to rapidly navigate through this document

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements Of Operations (Continued)
(unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions,
except per share amounts
ProForma basic net earnings (loss) attributable to Liberty stockholders per common share (note 4):
 
 
 
 
 
 
 
Series A and Series B Liberty Capital common stock
(1.27
)
 
0.30

 
2.44

 
(0.37
)
Series A and Series B Liberty Starz common stock
1.20

 
0.96

 
3.53

 
3.32

ProForma diluted net earnings (loss) attributable to Liberty stockholders per common share (note 4):
 
 
 
 
 
 
 
Series A and Series B Liberty Capital common stock
(1.27
)
 
0.29

 
2.39

 
(0.37
)
Series A and Series B Liberty Starz common stock
1.15

 
0.92

 
3.40

 
3.19


See accompanying notes to condensed consolidated financial statements.
I-4

QuickLinks -- Click here to rapidly navigate through this document

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements Of Comprehensive Earnings (Loss)
(unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
Net earnings (loss)
$
(43
)
 
74

 
377

 
129

Other comprehensive earnings (loss), net of taxes:
 
 
 
 
 
 
 
Unrealized holding gains (losses) arising during the period
(1
)
 
3

 
(28
)
 
(28
)
Recognition of previously unrealized (gains) losses on available-for-sale securities, net
(2
)
 

 

 
(13
)
Reattribution of other comprehensive earnings from Liberty Interactive

 

 

 
30

    Other
(1
)
 

 
6

 

        Other comprehensive earnings (loss)
(4
)
 
3

 
(22
)
 
(11
)
Comprehensive earnings (loss)
(47
)
 
77

 
355

 
118

Less comprehensive earnings (loss) attributable to the noncontrolling interests
(1
)
 

 
(1
)
 
(3
)
Comprehensive earnings (loss) attributable to Liberty stockholders
$
(46
)
 
77

 
356

 
121

Comprehensive earnings (loss) attributable to Liberty stockholders:
 
 
 
 
 
 
 
Liberty Capital common stock
$
(111
)
 
29

 
178

 
(45
)
Liberty Starz common stock
65

 
48

 
178

 
166

 
$
(46
)
 
77

 
356

 
121


See accompanying notes to condensed consolidated financial statements.
I-5

QuickLinks -- Click here to rapidly navigate through this document

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements Of Cash Flows
(unaudited)
 
Nine Months Ended
 
September 30,
 
2011
 
2010
 
amounts in millions
Cash flows from operating activities:
 
 
 
Net earnings
$
377

 
129

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
Depreciation and amortization
56

 
73

Amortization of program rights
523

 
551

Cash payments for program rights
(599
)
 
(507
)
Stock-based compensation
24

 
36

Cash payments for stock-based compensation
(10
)
 
(37
)
Noncash interest expense

 
1

Share of (earnings) loss of affiliates, net
(3
)
 
70

Realized and unrealized (gains) losses on financial instruments, net
81

 
(124
)
Losses (gains) on disposition of assets, net
1

 
(22
)
Change in tax accounts from Liberty Interactive, net
53

 
153

Deferred income tax expense
125

 
49

Other noncash charges (credits), net
(287
)
 
140

Changes in operating assets and liabilities
 
 
 
Current and other assets
(200
)
 
(166
)
Payables and other liabilities
175

 
74

Net cash provided (used) by operating activities
316

 
420

Cash flows from investing activities:
 
 
 
Cash proceeds from dispositions
17

 
59

Proceeds (payments) from settlement of financial instruments, net

 
750

Investments in and loans to cost and equity investees
(297
)
 
(288
)
Repayment of loan by Liberty Interactive

 
316

Repayment of loans by cost and equity investees
189

 
101

Capital expended for property and equipment
(9
)
 
(10
)
Net sales (purchases) of short term investments
302

 
(427
)
Net (increase) decrease in restricted cash
(139
)
 
(33
)
Reattribution of cash to Liberty Interactive
(264
)
 
(807
)
Other investing activities, net
(4
)
 
(7
)
Net cash provided (used) by investing activities
(205
)
 
(346
)
Cash flows from financing activities:
 
 
 
Borrowings of debt
1

 
97

Repayments of debt
(58
)
 
(1,018
)
Repurchases of Liberty common stock
(213
)
 
(627
)
Other financing activities, net
6

 
119

Net cash provided (used) by financing activities
(264
)
 
(1,429
)
Net increase (decrease) in cash and cash equivalents
(153
)
 
(1,355
)
Cash and cash equivalents at beginning of period
2,090

 
3,951

Cash and cash equivalents at end of period
$
1,937

 
2,596


See accompanying notes to condensed consolidated financial statements.
I-6

QuickLinks -- Click here to rapidly navigate through this document

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement Of Equity
(unaudited)
Nine months ended September 30, 2011
 
Stockholders' equity
 
 
 
 
 
 
 
 
Liberty
Capital
 
Liberty
Starz
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock
 
Series A
 
Series B
 
Series A
 
Series B
 
Additional Paid-in Capital
 
Parent's
Investment
 
Accumulated
other
comprehensive
earnings
 
Retained
earnings
 
Noncontrolling
interest in
equity of
subsidiaries
 
Total equity
 
amounts in millions
Balance at January 1, 2011
 
$

 
$

 
$

 
$

 
$

 
$

 
$
4,117

 
54

 
855

 

 
5,026

Net earnings
 

 

 

 

 

 

 

 

 
378

 
(1
)
 
377

Other comprehensive loss
 

 

 

 

 

 

 

 
(22
)
 

 

 
(22
)
Stock compensation
 

 

 

 

 

 

 
16

 

 

 

 
16

Issuance of common stock upon exercise of stock options
 

 

 

 

 

 

 
6

 

 

 

 
6

Series A Liberty Capital stock repurchases
 

 

 

 

 

 

 
(213
)
 

 

 

 
(213
)
Impact of reattribution with Liberty Interactive
 

 

 

 

 

 

 
45

 

 

 

 
45

Transfer of tax attributes to Liberty Interactive
 

 

 

 

 

 

 
(44
)
 

 

 

 
(44
)
Change in capitalization in connection with Split-off (note 1)
 

 
1

 

 

 

 
3,818

 
(3,819
)
 

 

 

 

Sale of noncontrolling interest, net of tax impacts
 

 

 

 

 

 

 
(105
)
 

 

 
(5
)
 
(110
)
Other
 

 

 

 

 

 

 
(3
)
 

 

 

 
(3
)
Balance at September 30, 2011
 

 
1

 

 

 

 
3,818

 

 
32

 
1,233

 
(6
)
 
5,078


See accompanying notes to condensed consolidated financial statements.
I-7

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)

(1)   Basis of Presentation
The accompanying consolidated financial statements of Liberty Media Corporation (formerly named Liberty CapStarz, Inc. thereto before known as Liberty Splitco, Inc.) ("Liberty" or the "Company" unless the context otherwise requires) represent a combination of the historical financial information of (1) certain video programming and other media related assets and businesses previously attributed to the Starz tracking stock group and the Capital tracking stock group of Liberty Interactive Corporation ("Liberty Interactive" and formerly named Liberty Media Corporation) further described in note 2 and (2) Liberty Media Corporation and its consolidated subsidiares for the period following the date of the completed Split-Off (defined below). The Split-Off has been accounted for at historical cost due to the pro rata nature of the distribution.
During the second quarter of 2010, Liberty Interactive announced that its board of directors 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 "Split-Off"). The Split-Off was completed on September 23, 2011 following the satisfaction of all conditions to the Split-Off. The Split-Off was effected by means of a redemption of all of the outstanding Liberty Capital common stock and Liberty Starz common stock of Liberty Interactive in exchange for all of the common stock of Liberty, which at the time of the Split-Off held all of the businesses, assets and liabilities previously attributed to the Capital and Starz tracking stock groups of Liberty Interactive pursuant to a Reorganization Agreement (described below). Liberty utilizes a tracking stock capital structure similar to that used by Liberty Interactive prior to the Split-Off, with two tracking stock groups: one tracking the businesses, assets and liabilities previously attributed to Liberty Interactive's Capital group ("Capital Group") and the other tracking the businesses, assets and liabilities that were previously attributed to Liberty Interactive's Starz group ("Starz Group").
Therefore, these financial statements have been presented using the historical presentation of the Liberty Interactive attributed financial information as a basis for the consolidated financial statements. Previous transactions of the Liberty Capital group and Liberty Starz group have been reflected as transactions of Liberty and the historical transactions of the Liberty Interactive group have been treated as transactions of Liberty Interactive for purposes of these financial statements. Previous transactions between either the Liberty Starz group or the Liberty Capital group and the Liberty Interactive group, including all reattributions, have been reflected at historical cost on a prospective basis (i.e., treated as book value transfers rather than retroactive as-if poolings). All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.
Following the Split-Off, Liberty and Liberty Interactive operate as separate publicly traded companies, and neither has any stock ownership, beneficial or otherwise, in the other. In connection with the Split-Off, Liberty and Liberty Interactive entered into certain agreements in order to govern ongoing relationships between the two companies after the Split-Off and to provide for an orderly transition. These agreements include a Reorganization Agreement, a Services Agreement, a Facilities Sharing Agreement and a Tax Sharing Agreement.
The Reorganization Agreement provides for, among other things, the principal corporate transactions required to effect the Split-Off and provisions governing the relationship between Liberty and Liberty Interactive with respect to and resulting from the Split-Off, including cross-indemnities. Pursuant to the Services Agreement, Liberty will provide Liberty Interactive with general and administrative services including legal, tax, accounting, treasury and investor relations support. Liberty Interactive will reimburse Liberty for direct, out-of-pocket expenses incurred by Liberty in providing these services and for Liberty Interactive's allocable portion of costs associated with any shared services or personnel based on an estimated percentage of time spent providing services to Liberty Interactive. Prior to the Split-Off these costs were being allocated between the tracking stock groups and Liberty does not believe these amounts will be significantly different following the completion of the Split-Off. Under the Facilities Sharing Agreement, Liberty Interactive will share office space with Liberty and related amenities at Liberty's corporate headquarters.
The Tax Sharing Agreement provides for the allocation and indemnification of tax liabilities and benefits between Liberty Interactive and Liberty and other agreements related to tax matters. Among other things, pursuant to the Tax Sharing Agreement, Liberty has agreed to indemnify Liberty Interactive, subject to certain limited exceptions, for losses and taxes resulting from the Split-Off to the extent such losses or taxes (i) result primarily from, individually or in the aggregate, the breach of certain restrictive covenants made by Liberty (applicable to actions or failures to act by Liberty and its subsidiaries following the completion of the Split-Off), (ii) result from the Liberty Capital common stock or the Liberty Starz common

I-8

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

stock not being treated as stock of Liberty, or being treated as Section 306 stock within the meaning of Section 306(c) of the Internal Revenue Code of 1986, as amended (the "Code"), for U.S. federal income tax purposes, (iii) result from the Liberty Interactive common stock, the Liberty Capital common stock, or the Liberty Starz common stock not being treated as stock of Liberty Interactive, or being treated as Section 306 stock within the meaning of Section 306(c) of the Code, for U.S. federal income tax purposes, (iv) result from Section 355(e) of the Code applying to the Split-Off as a result of the Split-Off being part of a plan (or series of related transactions) pursuant to which one or more persons acquire a 50-percent or greater interest (measured by vote or value) in the stock of Liberty, or (v) result from deferred intercompany items or excess loss accounts that are triggered by the Split-Off, and that would otherwise be allocated to Liberty. In addition, Liberty will be required to indemnify Liberty Interactive for any losses or taxes resulting from the failure of the LEI split-off (a previously completed spin-off by Liberty Interactive) and related restructuring transactions to be a tax-free transaction described under Sections 355 and 368(a)(1)(D) (including any such losses or taxes arising as a result of the completion of the Split-Off), except to the extent that such losses or taxes result primarily from, individually or in the aggregate, a breach of certain restrictive covenants made by Liberty Interactive (applicable to actions or failures to act by Liberty Interactive and its subsidiaries following the completion of the Split-Off).
Liberty, through its ownership of interests in subsidiaries and other companies, is primarily engaged in the media, communications and entertainment industries primarily in North America.
The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the combined financial statements and notes thereto of Liberty for the year ended December 31, 2010 which are included in Annex B to Amendment No. 5 to Liberty's Registration Statement on Form S-4 filed with the Securities and Exchange Commission on April 18, 2011.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company considers (i) fair value measurement, (ii) accounting for income taxes, (iii) assessments of other-than-temporary declines in fair value of its investments and (iv) amortization of program rights to be its most significant estimates.
Liberty holds investments that are accounted for using the equity method. Liberty does not control the decision making process or business management practices of these affiliates. Accordingly, Liberty relies on management of these affiliates to provide it with accurate financial information prepared in accordance with GAAP that the Company uses in the application of the equity method. In addition, Liberty relies on audit reports that are provided by the affiliates' independent auditors on the financial statements of such affiliates. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliates that would have a material effect on Liberty's condensed consolidated financial statements.
In September 2009, the Financial Accounting Standards Boards amended the Accounting Standards Codification ("ASC") as summarized in Accounting Standards Update ("ASU") 2009-14, Software (Topic 985): Certain Revenue Arrangements That Include Software Elements, and ASU 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. As summarized in ASU 2009-14, ASC Topic 985 has been amended to remove from the scope of industry specific revenue accounting guidance for software and software related transactions, tangible products containing software components and non-software components that function together to deliver the product's essential functionality. As summarized in ASU 2009-13, ASC Topic 605 has been amended (1) to provide updated guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and the consideration allocated; (2) to require an entity to allocate revenue in an arrangement using estimated selling prices of deliverables if a vendor does not have vendor-specific objective evidence or third-party evidence of selling price; and (3) to eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method. The accounting changes summarized in ASU 2009-14 and ASU 2009-13 are effective for fiscal years beginning on or after June 15, 2010, with early adoption permitted. Adoption may either be on a prospective basis or by retrospective application.
The Company adopted the revenue guidance on a prospective basis as of January 1, 2011. There was no financial statement impact on that date as a result of the adoption of the new accounting guidance. In the first quarter of 2011 TruePosition, a consolidated subsidiary of the Company, entered into an amended contract with AT&T (one of TruePosition's

I-9

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

largest customers) that materially changed the terms of the existing contract. The transition provisions of the new accounting guidance require that when a contract is materially modified it is subject to the new accounting requirements. This resulted in the Company recognizing revenue for all the delivered elements meeting the separation criteria, previously deferred under the previous accounting guidance. TruePosition recognized approximately $538 million of revenue and $167 million of deferred cost associated with the delivered elements as of the modification date. Previously, TruePosition did not have Vendor Specific Objective Evidence for the undelivered specified upgrade, which changed the timing of revenue recognition for the entire arrangement. Under the new guidance TruePosition utilized the estimated selling price to determine what portion of the overall consideration to allocate to the delivered and undelivered elements.
(2)   Tracking Stocks
Tracking stock is a type of common stock that the issuing company intends to reflect or "track" the economic performance of a particular business or "group," rather than the economic performance of the company as a whole. Liberty has two tracking stocks—Liberty Starz common stock and Liberty Capital common stock, which are intended to track and reflect the economic performance of the Starz Group and Capital Group, respectively. While the Starz Group and the Capital Group have separate collections of businesses, assets and liabilities attributed to them, no group is a separate legal entity and therefore cannot own assets, issue securities or enter into legally binding agreements. Holders of tracking stocks have no direct claim to the group's stock or assets and are not represented by separate boards of directors. Instead, holders of tracking stock are stockholders of the parent corporation, with a single board of directors and subject to all of the risks and liabilities of the parent corporation.
On February 25, 2010, Liberty Interactive announced that its board of directors had resolved to effect the following changes in attribution between its Capital Group and its Interactive Group, effective on that date (the "February Reattribution"):
the change in attribution from the Interactive Group to the Capital Group of a 14.6% ownership interest in Live Nation Entertainment, Inc.;
the change in attribution from the Capital Group to the Interactive Group of the following debt securities:
$469 million in principal amount of 4% Exchangeable Senior Debentures due 2029 (the "2029 Exchangeables");
$460 million in principal amount of 3.75% Exchangeable Senior Debentures due 2030 (the "2030 Exchangeables"); and
$492 million in principal amount of 3.5% Exchangeable Senior Debentures due 2031 (the "2031 Exchangeables", and together with the 2029 Exchangeables and the 2030 Exchangeables, the "Exchangeable Notes");
the change in attribution from the Capital Group to the Interactive Group of approximately $830 million in net taxable income to be recognized ratably in tax years 2014 through 2018 as a result of the cancellation in April 2009 of $400 million in principal amount of 2029 Exchangeables and $350 million in principal amount of 2030 Exchangeables; and
the change in attribution from the Capital Group to the Interactive Group of $807 million in cash.
On September 16, 2010, Liberty Interactive's board of directors approved a change in attribution of its interest in Starz Media, LLC along with $15 million in cash from its Capital Group to its Starz Group, effective September 30, 2010 (the "Starz Media Reattribution"). As a result of the Starz Media Reattribution, an intergroup payable of approximately $55 million owed by the Capital Group to the Starz Group was extinguished, and the Starz Group became attributed with approximately $54 million in bank debt, interest rate swaps and any shutdown costs associated with the winding down of the Overture Films business. Notwithstanding the Starz Media Reattribution, certain tax benefits relating to the operation of the Starz Media, LLC business during the time it was attributed to the Capital Group that may be realized from any future sale or other disposition of that business by the Starz Group will be attributed to the Capital Group.
On February 9, 2011, Liberty Interactive's board approved a change in attribution of $1,138 million of the 3.125% Exchangeable Senior Debentures due 2023, the stock into which such debt is exchangeable (approximately 22 million shares of Time Warner, Inc., 5 million shares of Time Warner Cable Inc. and 2 million shares of AOL, Inc. with an aggregate carrying value of $1,215 million at the time of the reattribution) and cash of $264 million from its Capital Group to its Interactive Group (the "TWX Reattribution").
As discussed in note 1, Liberty has reflected these reattributions prospectively in the unaudited attributed financial information. See Exhibit 99.1 to this Quarterly Report on Form 10-Q for unaudited attributed financial information for Liberty's tracking stock groups.

I-10

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

The term "Starz Group" does not represent a separate legal entity, rather it represents those businesses, assets and liabilities that Liberty has attributed to that group. The Starz Group focuses primarily on video programming and development, acquisition and distribution of content and is comprised primarily of Starz, LLC ("Starz") and $1,059 million (as of September 30, 2011) of cash, including subsidiary cash. The Starz Group will also include such other businesses, assets and liabilities that Liberty's board of directors may in the future determine to attribute to the Starz Group, including such other businesses as Liberty may acquire for the Starz Group.
The term "Capital Group" also does not represent a separate legal entity, rather it represents all of Liberty's businesses, assets and liabilities other than those that have been attributed to the Starz Group. The assets and businesses attributed to the Capital Group include Liberty's subsidiaries: Atlanta National League Baseball Club, Inc. ("ANLBC") and TruePosition, Inc. ("TruePosition"); and its interests in Sirius XM Radio Inc. ("SIRIUS XM"), Time Warner Inc., Time Warner Cable Inc., Sprint Nextel Corporation, Barnes & Noble, Inc. and Live Nation Entertainment, Inc. ("Live Nation"). In addition, Liberty has attributed $878 million of cash, including subsidiary cash, and $750 million principal amount (as of September 30, 2011) of other parent debt to the Capital Group. The Capital Group will also include such other businesses, assets and liabilities that Liberty's board of directors may in the future determine to attribute to the Capital Group, including such other businesses and assets as Liberty may acquire for the Capital Group.
(3)   Stock-Based Compensation
Liberty Interactive has previously granted, and Liberty will grant, to certain of its directors, employees and employees of its subsidiaries options and stock appreciation rights ("SARs") to purchase shares of its common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an Award of equity instruments (such as stock options and restricted stock) based on the grant-date fair value of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for an Award of liability instruments (such as stock appreciation rights that will be settled in cash) based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date.
In connection with the Split-Off, awards with respect to Liberty Interactive's Series A and Series B Liberty Starz and Liberty Capital common stock were converted to awards with respect to Liberty's Series A and Series B Liberty Starz and Liberty Capital common stock pursuant to Liberty's Transitional Stock Adjustment Plan. Therefore, the activity associated with such Awards of Liberty Interactive's Starz and Capital common stock, prior to the Split-Off, have been reflected as Awards of Liberty in the condensed consolidated financial statements.
Included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations are the following amounts of stock-based compensation (amounts in millions):
 
 
Three months ended:
 
September 30, 2011
$
3

September 30, 2010
$
13

Nine months ended:
 
September 30, 2011
$
24

September 30, 2010
$
36

In the nine months ended September 30, 2011, the Company granted, primarily to Starz employees, 496,000 options to purchase shares of Series A Liberty Starz common stock. Such options had a weighted average grant-date fair value of $21.36 per share. These options vest quarterly over the 4 year vesting period.
Liberty Interactive previously calculated, and Liberty calculates, the grant-date fair value for all of its equity classified awards and the subsequent remeasurement of its liability classified awards using the Black-Scholes Model. Liberty estimates the expected term of the Awards based on historical exercise and forfeiture data. The volatility used in the calculation for Awards is based on the historical volatility of Liberty Capital and Liberty Starz common stocks and the implied volatility of publicly traded Liberty Capital and Liberty Starz options. Liberty uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject Awards.

I-11

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

Liberty—Outstanding Awards
The following table presents the number and weighted average exercise price ("WAEP") of Awards to purchase Liberty common stock granted to certain officers, employees and directors of the Company.
 
Series A
 
Liberty
Capital
 
WAEP
 
Liberty
Starz
 
WAEP
 
numbers of Awards in thousands
Outstanding at January 1, 2011
4,996

 
$
19.38

 
3,217

 
$
46.15

Granted

 
$

 
496

 
$
72.92

Exercised
(565
)
 
$
9.86

 
(150
)
 
$
31.30

Forfeited/Cancelled/Exchanged
(2
)
 
$
25.17

 
(33
)
 
$
64.77

Outstanding at September 30, 2011
4,429

 
$
20.58

 
3,530

 
$
50.35

Exercisable at September 30, 2011
1,382

 
$
10.62

 
707

 
$
35.08

The following table provides additional information about outstanding Awards to purchase Liberty Capital and Liberty Starz common stock at September 30, 2011.

 
No. of
outstanding
Awards
(000's)
 
WAEP of
outstanding
Awards
 
Weighted
average
remaining
life
 
Aggregate
intrinsic
value
(000's)
 
No. of
exercisable
Awards
(000's)
 
WAEP of
exercisable
Awards
 
Aggregate
intrinsic
value
(000's)
Series A Capital
4,429

 
$
20.58

 
5.6 years
 
$
201,729

 
1,382

 
$
10.62

 
$
76,711

Series A Starz
3,530

 
$
50.35

 
5.8 years
 
$
56,403

 
707

 
$
35.08

 
$
20,684

Series B Starz
36

 
$
26.71

 
3.7 years
 
$
1,566

 
36

 
$
26.71

 
$
1,566

As of September 30, 2011, the total unrecognized compensation cost related to unvested Liberty Awards was approximately $69 million. Such amount will be recognized in the Company's condensed consolidated statements of operations over a weighted average period of approximately 3.0 years.
As of September 30, 2011, Liberty reserved for issuance upon exercise of outstanding stock Awards the following:
 
Series A
 
Series B
 
amounts in millions
Liberty Capital common stock
4.4

 

Liberty Starz common stock
3.5

 
0.1


(4)   Earnings Attributable to Liberty Media Corporation Stockholders Per Common Share
Basic earnings (loss) per common share ("EPS") is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented.
Series A and Series B Liberty Capital Common Stock
The basic and diluted EPS calculation is based on the following weighted average outstanding shares of Liberty Capital common stock, based on the conversion ratio of 1 to 1 utilized in the Split-Off, prior to the Split-Off, and the actual Liberty Capital common stock after the Split-Off. Excluded from diluted EPS for the nine months ended September 30, 2011 are less than a million potential common shares because their inclusion would be anti-dilutive.

I-12

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

 
Liberty Capital Common Stock
 
Three months ended September 30, 2011
 
Nine months ended September 30, 2011
 
Three months ended September 30, 2010
 
Nine months ended September 30, 2010
 
numbers of shares in millions
Basic EPS
81

 
81

 
86

 
92

Stock options

 
2

 
3

 

Diluted EPS
81

 
83

 
89

 
92

Series A and Series B Liberty Starz Common Stock
The basic and diluted EPS calculation is based on the following weighted average outstanding shares of Liberty Starz common stock, based on the conversion ratio of 1 to 1 utilized in the Split-Off, prior to the Split-Off, and the actual Liberty Starz common stock after the Split-Off. Excluded from diluted EPS for the nine months ended September 30, 2011 are less than a million potential common shares because their inclusion would be anti-dilutive.
 
Liberty Starz Common Stock
 
Three months ended September 30, 2011
 
Nine months ended September 30, 2011
 
Three months ended September 30, 2010
 
Nine months ended September 30, 2010
 
numbers of shares in millions
Basic EPS
51

 
51

 
50

 
50

Stock options
2

 
2

 
2

 
2

Diluted EPS
53

 
53

 
52

 
52


(5)   Assets and Liabilities Measured at Fair Value
For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.
Liberty's assets and liabilities measured at fair value are as follows:
 
 
 
Fair Value Measurements at September 30, 2011
Description
Total
 
Quoted prices
in active markets
for identical assets
(Level 1)
 
Significant other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
 
 
amounts in millions
Short term marketable securities
$
275

 
275

 

 

Available-for-sale securities
$
2,773

 
2,380

 
393

 

Financial instruments
$
1,085

 
1,076

 
9

 

The majority of Liberty's Level 2 financial assets and liabilities are debt instruments with quoted market prices which are not considered to be traded on "active markets," as defined in GAAP. Accordingly, the financial instruments are reported in the foregoing table as Level 2 fair value.
(6)   Investments in Available-for-Sale Securities and Other Cost Investments
All marketable equity and debt securities held by the Company are classified as available-for-sale ("AFS") and are carried at fair value generally based on quoted market prices. GAAP permits entities to choose to measure many financial instruments, such as AFS securities, and certain other items at fair value and to recognize the changes in fair value of such instruments in the entity's statement of operations (the "fair value option"). The Company has entered into economic hedges for certain of its non-strategic AFS securities (although such instruments are not accounted for as fair value hedges by the

I-13

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

Company). Changes in the fair value of these economic hedges are reflected in the Company's statement of operations as unrealized gains (losses). In order to better match the changes in fair value of the subject AFS securities and the changes in fair value of the corresponding economic hedges in the Company's financial statements, the Company has elected the fair value option for those of its AFS securities which it considers to be non-strategic ("Non-strategic Securities"). Accordingly, changes in the fair value of Non-strategic Securities, as determined by quoted market prices, are reported in realized and unrealized gains (losses) on financial instruments in the accompanying condensed consolidated statements of operations. The total value of the Non-strategic Securities aggregated $2,156 million as of September 30, 2011.
Investments in AFS securities, including Non-strategic Securities, and other cost investments are summarized as follows:
 
September 30, 2011
 
December 31,
2010

 
amounts in millions
Capital Group
 
 
 
  Time Warner Inc.(1)(2)
$
373

 
1,101

  Time Warner Cable Inc.(1)(2)
196

 
567

  Sprint Nextel Corporation ("Sprint")(1)
140

 
301

  Motorola Solutions(1)(3)
311

 
471

  Motorola Mobility(1)(3)
245

 

  Viacom, Inc. 
294

 
301

  Live Nation(4)
24

 
389

  Century Link, Inc.(1)
122

 
248

  Barnes & Noble, Inc. (5)
206

 

  Priceline(1)
234

 
208

  Other AFS equity securities(1)(2)
35

 
100

  SIRIUS XM debt securities
377

 
384

  Other AFS debt securities
216

 
404

  Other cost investments and related receivables
8

 
9

    Total attributed to the Capital Group
2,781

 
4,483

Starz Group
 
 
 
  Other
1

 
67

    Total attributed to the Starz Group
1

 
67

Consolidated Liberty
$
2,782

 
4,550

___________________________

(1)
Includes shares pledged as collateral for share borrowing arrangements. See note 8.
(2)
As discussed in note 2, certain of these securities were reattributed from its Capital Group to its Interactive Group in the first quarter of 2011.
(3)
Effective January 4, 2011 Motorola, Inc. separated Motorola Mobility Holdings, Inc. in a 1 for 8 stock distribution. Motorola, Inc. simultaneously completed a 1 for 7 reverse stock split and was renamed Motorola Solutions, Inc.
(4)
In June 2011, Liberty acquired an additional 5.5 million shares of Live Nation for $58 million. The additional ownership requires the Company to account for the investment as an equity method affiliate. For additional discussion see note 7. Liberty continues to hold debt securities in Live Nation which are included in available-for-sale securities.
(5)
In August 2011, Liberty acquired 204,000 shares of preferred stock of Barnes & Noble, Inc. which is convertible into an approximate 17% common equity interest for $204 million. The preferred stock accrues dividends at a rate of 7.75% per annum. Liberty has elected to account for its investment in Barnes & Noble at fair value. Accordingly, changes in fair value of Barnes & Noble, Inc. preferred stock are reported in realized and unrealized gains (losses) on financial instruments in the accompanying condensed consolidated statements of operations.

I-14

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

Unrealized Holding Gains and Losses
Unrealized holding gains and losses related to investments in AFS securities are summarized below.
 
September 30, 2011
 
December 31, 2010
 
Equity
securities
 
Debt
securities
 
Equity
securities
 
Debt
securities
 
amounts in millions
Gross unrealized holding gains
$
1

 
52

 
32

 
66

Gross unrealized holding losses(1)
$

 
1

 

 

___________________________

(1)
Liberty does not currently have any gross unrealized losses that have been in such position for greater than a year.

(7)   Investments in Affiliates Accounted for Using the Equity Method
Liberty has various investments accounted for using the equity method. The following table includes the Company's carrying amount and percentage ownership of the more significant investments in affiliates at September 30, 2011 and the carrying amount at December 31, 2010:
 
September 30, 2011
 
December 31, 2010
 
Percentage
ownership
 
Market
Value
 
Carrying
amount
 
Carrying
amount
 
 
 
dollar amounts in millions
Capital Group
 
 
 
 
 
 
 
SIRIUS XM
40
%
 
$
3,906

 
$
32

 
5

Live Nation(a)
21
%
 
$
314

 
376

 

 Other
various

 
N/A

 
99

 
86

 
 

 
 

 
$
507

 
91

The following table presents the Company's share of earnings (losses) of affiliates:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
Capital Group
 
 
 
 
 
 
 
SIRIUS XM
$
42

 
(51
)
 
34

 
(51
)
Live Nation(a)
1

 

 
(44
)
 

Other
10

 
(8
)
 
13

 
(19
)
 
$
53

 
(59
)
 
3

 
(70
)
___________________________

(a)
During June 2011, Liberty acquired an additional 5.5 million shares of Live Nation which increased our ownership percentage above 20% of the outstanding voting shares. Due to the presumption that an entity with an ownership percentage greater than 20% has significant influence and no other factors would rebut that presumption, the Company is accounting for the investment as an equity method affiliate. The Company has elected to record its share of earnings (loss) for Live Nation on a three-month lag due to timeliness considerations. Increases in ownership which result in a change to the equity method of accounting generally require retroactive recognition of an investment's share of earnings (loss) in prior periods. Due to the relative insignificance of our share of losses for Live Nation in previous periods, both quantitatively and qualitatively, the Company has recorded such amounts in the current year. Approximately $12 million of the losses recorded for the nine months ended September 30, 2011 relate to the prior year.

I-15

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

Sirius XM Radio Inc.
Based on the Company's voting rights and its conclusion that the SIRIUS XM Preferred Stock is in-substance common stock, the Company accounts for its investment in the SIRIUS XM Preferred Stock using the equity method of accounting. The Company has elected to record its share of earnings (loss) for SIRIUS XM on a three-month lag due to timeliness considerations.
Summarized unaudited financial information for SIRIUS XM is as follows:
SIRIUS XM Consolidated Balance Sheet
 
June 30,
2011

 
December 31,
2010

 
amounts in millions
Current assets
$
965

 
992

Property and equipment, net
1,723

 
1,761

Intangible assets
2,602

 
2,633

Goodwill
1,835

 
1,835

Other assets
179

 
162

Total assets
$
7,304

 
7,383

Current liabilities
$
2,171

 
2,350

Deferred income taxes
927

 
915

Long-term debt
2,672

 
2,696

Other liabilities
1,039

 
1,214

Stockholders' equity
495

 
208

Total liabilities and equity
$
7,304

 
7,383


SIRIUS XM Consolidated Statement of Operations
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
 
amounts in millions
Revenue
$
744

 
700

 
$
1,468

 
$
1,364

Costs of services
(273
)
 
(266
)
 
(544
)
 
(527
)
Selling, general and administrative expenses
(231
)
 
(237
)
 
(452
)
 
(445
)
Restructuring, impairments and related costs

 
(2
)
 

 
(2
)
Depreciation and amortization
(67
)
 
(69
)
 
(135
)
 
(139
)
Operating income
173

 
126

 
337

 
251

Interest expense
(76
)
 
(77
)
 
(154
)
 
(155
)
Loss on extinguishment of debt
(1
)
 
(32
)
 
(7
)
 
(34
)
Other income (loss), net
80

 

 
80

 
(2
)
Income tax expense
(3
)
 
(2
)
 
(5
)
 
(3
)
Net income attributable to SIRIUS XM stockholders
$
173

 
15

 
$
251

 
$
57

As of September 30, 2011, the SIRIUS XM Preferred Stock had a market value of $3,906 million based on the value of the common stock into which it is convertible.

I-16

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)


(8)   Financial Instruments
Borrowed Shares
From time to time and in connection with certain of its derivative instruments, the Company borrows shares of the underlying securities from a counterparty and delivers these borrowed shares in settlement of maturing derivative positions. In these transactions, a similar number of shares that are owned by the Company have been posted as collateral with the counterparty. These share borrowing arrangements can be terminated at any time at the Company's option by delivering shares to the counterparty. The counterparty can terminate these arrangements at any time. The liability under these share borrowing arrangements is marked to market each reporting period with changes in value recorded in unrealized gains or losses in the consolidated statement of operations. The shares posted as collateral under these arrangements are marked to market each reporting period with changes in value recorded as unrealized gains or losses in the consolidated statement of operations.
The Company's financial instruments are summarized as follows:
Type of financial instrument
September 30, 2011
 
December 31,
2010

 
amounts in millions
Liabilities
 
 
 
Borrowed shares(1)
$
1,076

 
1,219

Other
9

 
11

 
1,085

 
1,230

Less current portion
(1,085
)

(1,222
)
 
$

 
8

___________________________

(1)
The market values of borrowed shares are as follows:

 
September 30, 2011
 
December 31,
2010

 
amounts in millions
Time Warner
$
91

 
97

Time Warner Cable
48

 
50

Sprint(a)
83

 
221

Motorola Solutions(b)
311

 
471

Motorola Mobility(b)
245

 

CenturyLink(a)
62

 
165

Priceline
234

 
208

Other
2

 
7

 
$
1,076

 
1,219

____________________
(a)
In January 2011, the Company unwound a portion of the borrowed share position with respect to approximately 25 million Sprint shares and 2 million CenturyLink shares through the delivery of such shares to the counterparty. The asset associated with these AFS securities ($115 million and $74 million, respectively) was retired as well as the liability ($115 million and $74 million, respectively).
(b)
As discussed in note 6, Motorola Inc. separated into two companies effective January 4, 2011 through a stock distribution and reverse stock split.



I-17

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

Realized and Unrealized Gains (Losses) on Financial Instruments
Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following:

 
Three months ended September 30,
 
Nine months ended September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
Non-strategic Securities(1)
$
(337
)
 
392

 
48

 
422

Borrowed shares(1)
72

 
(244
)
 
(46
)
 
(183
)
    Net change from Non-strategic securities(1)
(265
)
 
148

 
2

 
239

Exchangeable senior debentures

 
(76
)
 
(85
)
 
(82
)
Equity collars

 

 

 
(2
)
Other
8

 
(2
)
 
2

 
(31
)
 
$
(257
)
 
70

 
(81
)
 
124

___________________________

(1)
As described above, gains and (losses) on borrowed shares completely offset the gains and (losses) on the same Non-strategic Securities owned by the Company.

(9) Long-Term Debt
Debt is summarized as follows:
 
 
 
Carrying value
 
Outstanding Principal September 30, 2011
 
 
September 30,
2011
 
December 31,
2010

 
amounts in millions
Capital Group
 
 
 
 
 
Exchangeable Senior Debentures 3.125% due 2023
$

 

 
1,283

Bank Facility
750

 
750

 
750

Total attributed Capital Group debt
750

 
750

 
2,033

Starz Group
 
 
 
 
 
Subsidiary debt
41

 
41

 
105

Total attributed Starz Group debt
41

 
41

 
105

Total debt
$
791

 
791

 
2,138

Less current maturities
 

 
(754
)
 
(37
)
Total long-term debt
 

 
$
37

 
2,101

Exchangeable Senior Debentures
As discussed in note 2, in the first quarter of 2011 the Board of Directors of Liberty Interactive reattributed the 3.125% Exchangeable Senior Debentures from its Capital Group to its Interactive Group which was reflected on a prospective basis.
Bank Facility
The outstanding balance represents borrowings from a financial institution to be invested by the Company in a portfolio of selected debt and mezzanine-level instruments of companies in the telecommunications, media and technology sectors. The outstanding principal matures in March 2012. Due to the investment restrictions contained in the agreements related to these borrowings and the maturity date of the related borrowings, the uninvested cash balance of $638 million is included in restricted cash in the accompanying condensed consolidated balance sheet at September 30, 2011. The restricted cash and AFS debt investments associated with these borrowings are available to satisfy the obligations at maturity.

I-18

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

Subsidiary Debt
Subsidiary debt at September 30, 2011 is comprised of capitalized satellite transponder lease obligations.
Fair Value of Debt
Due to its variable rate nature, the Company believes that the carrying amount of its debt approximated fair value at September 30, 2011.
(10) Commitments and Contingencies
Film Rights
Starz, a wholly-owned subsidiary of the Company, provides premium video programming distributed by cable operators, direct-to-home satellite providers, telephone companies and other distributors throughout the United States. Starz has entered into agreements with a number of motion picture producers which obligate Starz to pay fees ("Programming Fees") for the rights to exhibit certain films that are released by these producers. The unpaid balance of Programming Fees for films that were available for exhibition by Starz at September 30, 2011 is reflected as a liability, in other liabilities, in the accompanying condensed consolidated balance sheet. The balance due as of September 30, 2011 is payable as follows: $79 million in 2011 and $9 million in 2012.
Starz has also contracted to pay Programming Fees for films that have been released theatrically, but are not available for exhibition by Starz until some future date. These amounts have not been accrued at September 30, 2011. Starz is obligated to pay Programming Fees for all qualifying films that are released theatrically in the United States by studios owned by The Walt Disney Company ("Disney") through 2015 and all qualifying films that are released theatrically in the United States by studios owned by Sony through 2016. Films are generally available to Starz Entertainment for exhibition 8-12 months after their theatrical release. The Programming Fees to be paid by Starz are based on the quantity and the domestic theatrical exhibition receipts of qualifying films. As these films have not yet been released in theaters, Starz is unable to estimate the amounts to be paid under these output agreements. However, such amounts are expected to be significant.
In addition, Starz has agreed to pay Sony Pictures Entertainment ("Sony") a total of $142.5 million in three remaining annual installments of $47.5 million with the next installment due at the beginning of 2012. In December 2008, Starz entered into a new agreement with Sony requiring $120 million in three equal annual installments beginning in 2015. Starz's estimate of amounts payable for rights to future programming (that have been released), including the Disney and Sony agreements, is as follows: $45 million in 2011; $393 million in 2012; $82 million in 2013; $67 million in 2014; $55 million in 2015 and $90 million thereafter.
Guarantees
The Company guarantees Starz's obligations under certain of its studio output agreements. At September 30, 2011, the Company's guarantees for obligations for films released by such date aggregated $551 million. While the guarantee amount for films not yet released is not determinable, such amount is expected to be significant. As noted above, Starz has recognized the liability for a portion of its obligations under the output agreements. As this represents a direct commitment of Starz, a consolidated subsidiary of the Company, the Company has not recorded a separate indirect liability for its guarantee of these obligations.
In connection with agreements for the sale of assets by the Company or its subsidiaries, the Company may retain liabilities that relate to events occurring prior to its sale, such as tax, environmental, litigation and employment matters. The Company generally indemnifies the purchaser in the event that a third party asserts a claim against the purchaser that relates to a liability retained by the Company. These types of indemnification obligations may extend for a number of years. The Company is unable to estimate the maximum potential liability for these types of indemnification obligations as the sale agreements may not specify a maximum amount and the amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the accompanying condensed consolidated financial statements with respect to these indemnification guarantees.

I-19

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)

Employment Contracts
The Atlanta Braves and certain of their players and coaches have entered into long-term employment contracts whereby such individuals' compensation is guaranteed. Amounts due under guaranteed contracts as of September 30, 2011 aggregated $122 million, which is payable as follows: $2 million in 2011, $74 million in 2012, $20 million in 2013, $13 million in 2014 and $13 million thereafter. In addition to the foregoing amounts, certain players and coaches may earn incentive compensation under the terms of their employment contracts.
Operating Leases
The Company and its subsidiaries lease business offices, have entered into satellite transponder lease agreements and use certain equipment under lease arrangements.
Litigation
The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements.
The IRS has proposed adjustments under the Compliance Assurance Process audit program with respect to several of the 2010 tax return positions taken by Liberty Interactive for which the Company is liable under its Tax Sharing Agreement with Liberty Interactive. Liberty Interactive has notified the IRS that it disagrees with the proposed adjustments and has scheduled a mediation conference with the IRS during the fourth quarter to resolve the disputed items. If resolution cannot be reached in the mediation conference, Liberty Interactive and the Company intend to pursue additional administrative and judicial remedies. If all of the proposed IRS adjustments were ultimately sustained, the maximum impact to the Company's income tax expense would be an increase of $480 million (related to disallowance of capital loss carryforwards) and could require cash tax payments of up to $680 million (related to current taxation of deferred derivative gains) under its Tax Sharing Agreement.

(11) Information About Liberty's Operating Segments
The Company, through its ownership interests in subsidiaries and other companies, is primarily engaged in the media, communications and entertainment industries. The Company has attributed each of its businesses to one of two groups: the Starz Group and the Capital Group. Each of the businesses in the tracking stock groups is separately managed. The Company identifies its reportable segments as (A) those consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual pre-tax earnings or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of the Company's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation.
The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, Adjusted OIBDA and gross margin. In addition, the Company reviews nonfinancial measures such as subscriber growth and penetration.
The Company defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its businesses, including each business's ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
As discussed in Note 2, effective September 30, 2010, Liberty Interactive's board of directors approved a change in attribution of Starz Media from its Capital Group to its Starz Group to better align the remaining businesses of Starz Media with the legacy Starz Entertainment business to form a consolidated Starz entity that we refer to as Starz, LLC. The Starz Media Reattribution did not have any impact on the consolidated results of the Company and was reflected on a prospective basis for tracking stock purposes. This change in attribution of Starz Media changed how these entities are reviewed and

I-20

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)


operated from the Company's combined view point and thus gives rise to a new presentation for segment reporting purposes for both the current and prior year periods.
Prior to its reattribution the biggest driver of the Starz Media business unit was its theatrical production business which is no longer being operated except for the exploitation of its existing film library in home video, non-pay television and other ancillary markets. As a result, we do not expect the effect of the remaining Starz Media businesses in future periods to materially change Starz, LLC's operations prospectively. Based on this lack of comparability and the importance of maintaining the integrity of the historical tracking stock results we have included a segment reclassification adjustment for both the Starz Group and the Capital Group in order to reconcile to the historical attributed results for each group.
For the nine months ended September 30, 2011, the Company has identified the following businesses as its reportable segments:
Starz, LLC—consolidated subsidiary attributed to the Starz Group that provides premium networks distributed by cable operators, direct-to-home satellite providers, telephone companies and other distributors in the United States and develops, produces and acquires entertainment content and distributes such content to consumers in a wide variety of formats in the United States and throughout the world.
ANLBC—consolidated subsidiary attributed to the Capital Group that owns and operates the Atlanta Braves Major League Baseball franchise.
TruePosition, Inc.—consolidated subsidiary attributed to the Capital Group that develops and markets technology for locating wireless phones and other wireless devices enabling wireless carriers, application providers and other enterprises to provide E-911 services domestically and other location-based services to mobile users both domestically and worldwide.
The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated subsidiaries are the same as those described in the Company's summary of significant policies.
Performance Measures
 
Nine months ended September 30,
 
2011
 
2010
 
Revenue
 
Adjusted
OIBDA
 
Revenue
 
Adjusted
OIBDA
 
amounts in millions
Starz Group
 
 
 
 
 
 
 
Starz, LLC
$
1,183

 
356

 
1,246

 
238

Corporate and other
1

 
(9
)
 
8

 
(10
)
Adjustment for tracking stock purposes(1)

 

 
(317
)
 
67

 
1,184

 
347

 
937

 
295

Capital Group
 
 
 
 
 
 
 
ANLBC
199

 
11

 
186

 
8

TruePosition
619

 
380

 
86

 
(11
)
Corporate and other
49

 
(1
)
 
28

 
(7
)
Adjustment for tracking stock purposes(1)

 

 
317

 
(67
)
 
867

 
390

 
617

 
(77
)
Consolidated Liberty
$
2,051

 
737

 
1,554

 
218


I-21

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)



 
Three months ended September 30,
 
2011
 
2010
 
Revenue
 
Adjusted
OIBDA
 
Revenue
 
Adjusted
OIBDA
 
amounts in millions
Starz Group
 
 
 
 
 
 
 
Starz, LLC
$
389

 
107

 
405

 
86

Corporate and other

 
(3
)
 
3

 
(3
)
Adjustment for tracking stock purposes(1)

 

 
(89
)
 
6

 
389

 
104

 
319

 
89

Capital Group
 
 
 
 
 
 
 
ANLBC
104

 
19

 
95

 
13

TruePosition
32

 
7

 
60

 
17

Corporate and other
15

 
(1
)
 
7

 
1

Adjustment for tracking stock purposes(1)

 

 
89

 
(6
)
 
151

 
25

 
251

 
25

Consolidated Liberty
$
540

 
129

 
570

 
114

___________________________

(1)
As discussed above, due to the change in segments, the prior periods have been changed to reflect the current segment presentation. The adjustment is necessary to align the tracking stock subtotals to the Unaudited Attributed Financial Information for tracking stock groups found in Exhibit 99.1, wherein this change in attribution has been reflected prospectively.
Other Information

 
September 30, 2011
 
Total
assets
 
Investments
in affiliates
 
Capital
expenditures
 
amounts in millions
Starz Group
 
 
 
 
 
Starz, LLC
$
2,013

 

 
4

Corporate and other
622

 

 

 
2,635

 

 
4

Capital Group
 
 
 
 
 
ANLBC
565

 
31

 
1

TruePosition
319

 

 
3

Corporate and other
5,494

 
476

 
1

 
6,378

 
507

 
5

Inter-group eliminations
(98
)
 

 

Consolidated Liberty
$
8,915

 
507

 
9


I-22

LIBERTY MEDIA CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)


The following table provides a reconciliation of segment Adjusted OIBDA to earnings (loss) from continuing operations before income taxes:
 
Three months ended
September 30,
 
Nine months ended
September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
Consolidated segment Adjusted OIBDA
$
129

 
114

 
737

 
218

Stock-based compensation
(3
)
 
(13
)
 
(24
)
 
(36
)
Gain on legal settlement

 

 
7

 

Depreciation and amortization
(15
)
 
(27
)
 
(56
)
 
(73
)
Interest expense
(3
)
 
(12
)
 
(13
)
 
(46
)
Liberty interest income (expense)

 

 

 
3

Share of earnings (losses) of affiliates, net
53

 
(59
)
 
3

 
(70
)
Realized and unrealized gains (losses) on financial instruments, net
(257
)
 
70

 
(81
)
 
124

Gains (losses) on dispositions, net
1

 
(2
)
 
(1
)
 
22

Other, net
10

 
30

 
61

 
73

Earnings (loss) from continuing operations before income taxes
$
(85
)
 
101

 
633

 
215



I-23

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

Certain statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our business, product and marketing strategies; new service offerings; revenue growth and subscriber trends at Starz, LLC; the recoverability of our goodwill and other long-lived assets; counterparty performance under our derivative arrangements; our projected sources and uses of cash; the estimated value of our derivative instruments; and the anticipated non-material impact of certain contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. The following include some but not all of the factors that could cause actual results or events to differ materially from those anticipated:
customer demand for our products and services and our ability to adapt to changes in demand;
competitor responses to our products and services, and the products and services of the entities in which we have interests;
uncertainties inherent in the development and integration of new business lines and business strategies;
uncertainties associated with product and service development and market acceptance, including the development and provision of programming for new television and telecommunications technologies;
our future financial performance, including availability, terms and deployment of capital;
our ability to successfully integrate and recognize anticipated efficiencies and benefits from the businesses we acquire;
the ability of suppliers and vendors to deliver products, equipment, software and services;
the outcome of any pending or threatened litigation;
availability of qualified personnel;
changes in, or failure or inability to comply with, government regulations, including, without limitation, regulations of the Federal Communications Commission, and adverse outcomes from regulatory proceedings;
changes in the nature of key strategic relationships with partners, vendors and joint venturers;
general economic and business conditions and industry trends including the current economic downturn;
consumer spending levels, including the availability and amount of individual consumer debt;
disruption in the production of theatrical films or television programs due to strikes by unions representing writers, directors or actors;
continued consolidation of the broadband distribution and movie studio industries;
increased digital TV penetration and the impact on channel positioning of our networks;
rapid technological changes;
capital spending for the acquisition and/or development of telecommunications networks and services;
the regulatory and competitive environment of the industries in which we, and the entities in which we have interests, operate;
threatened terrorist attacks and ongoing military action in the Middle East and other parts of the world; and
fluctuations in foreign currency exchange rates and political unrest in international markets.
For additional risk factors, please see the Risk Factors section of Liberty Media Corporation's Amendment No. 5 to its Registration Statement on Form S-4 relating to the Split-Off (as defined below), filed with the Securities and Exchange Commission on April 18, 2011 (the "Registration Statement"). These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this Quarterly Report, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based.
The following discussion and analysis provides information concerning our results of operations and financial condition. This discussion should be read in conjunction with our accompanying condensed consolidated financial statements and the notes thereto and our audited combined financial statements for the year ended December 31, 2010 in the Registration Statement.

I-24

Explanatory Note
Liberty Media Corporation ("Liberty" or "the Company") was previously an indirect, wholly owned subsidiary of Liberty Interactive Corporation ("Liberty Interactive," formerly known as Liberty Media Corporation). Liberty Interactive's capital structure previously utilized three tracking stocks: the Liberty Interactive common stock, Liberty Starz common stock and Liberty Capital common stock. During the third quarter of 2011, Liberty Interactive completed the previously announced plan to separate its Liberty Capital and Liberty Starz tracking stock groups from its Liberty Interactive tracking stock group (the "Split-Off"). The Split-Off was effected by means of a redemption of all of the Liberty Capital common stock and the Liberty Starz common stock in exchange for all of the common stock of Liberty which at the time of the Split-Off held all of the assets, liabilities and businesses previously attributed to Liberty Interactive's Capital and Starz tracking stock groups.
Overview
We own controlling and non-controlling interests in a broad range of media, communications and entertainment companies. Our more significant operating subsidiaries, which are also our principal reportable segments, are Starz, LLC, Atlanta National League Baseball Club, Inc., ("ANLBC") and TruePosition, Inc. ("TruePosition"). Starz, LLC provides premium networks distributed by cable operators, direct-to-home satellite providers, telephone companies and other distributors in the United States and develops, produces and acquires entertainment content and distributes such content to consumers in a wide variety of formats. ANLBC owns the Atlanta Braves, a major league baseball club, as well as certain of the Atlanta Braves' minor league clubs. TruePosition provides equipment and technology that deliver location-based services to wireless users.
Our "Corporate and Other" category includes our other consolidated subsidiaries and corporate expenses.
In addition to the foregoing businesses, we hold ownership interests in Sirius XM Radio, Inc. ("SIRIUS XM") and Live Nation Entertainment, Inc. ("Live Nation"), which we account for as equity method investments; and we continue to maintain investments and related financial instruments in public companies such as Time Warner Inc., Time Warner Cable Inc. and Sprint Nextel Corporation, which are accounted for at their respective fair market values and are included in corporate and other.
Tracking Stocks
Tracking stock is a type of common stock that the issuing company intends to reflect or "track" the economic performance of a particular business or "group," rather than the economic performance of the company as a whole. Liberty has two tracking stocks—Liberty Starz common stock and Liberty Capital common stock, which are intended to track and reflect the economic performance of the Starz Group and Capital Group, respectively. While the Starz Group and the Capital Group have separate collections of businesses, assets and liabilities attributed to them, no group is a separate legal entity and therefore cannot own assets, issue securities or enter into legally binding agreements. Holders of tracking stocks have no direct claim to the group's stock or assets and are not represented by separate boards of directors. Instead, holders of tracking stock are stockholders of the parent corporation, with a single board of directors and subject to all of the risks and liabilities of the parent corporation.
On February 9, 2011, Liberty Interactive's board of directors approved the change in attribution of (i) approximately $1.138 billion principal amount of Liberty Interactive LLC's (formerly known as Liberty Media LLC) 3.125% Exchangeable Senior Debentures due 2023 (the "TWX Exchangeable Notes"), (ii) 21,785,130 shares of Time Warner Inc. common stock, 5,468,254 shares of Time Warner Cable Inc. common stock and 1,980,425 shares of AOL, Inc. common stock, which collectively represent the basket of securities into which the TWX Exchangeable Notes are exchangeable and (iii) $263.8 million in cash from the Liberty Capital Group to the Liberty Interactive Group, effective immediately (the "TWX Reattribution"). The TWX Reattribution had no effect on the assets and liabilities attributed to the Liberty Starz Group, nor did it effect any change to the obligor of the TWX Exchangeable Notes, which remains Liberty Media LLC.
Liberty Interactive had made changes in the attribution of certain assets, liabilities and businesses between the Groups in prior periods, as discussed in previous financial statements filed with the Securities and Exchange Commission and in the Notes to Condensed Financial Statements included in this Quarterly Report on Form 10-Q.
The Company has reflected these reattributions prospectively in the unaudited attributed financial information. See Exhibit 99.1 to this Quarterly Report on Form 10-Q for unaudited attributed financial information for our tracking stock groups.
The term "Starz Group" does not represent a separate legal entity, rather it represents those businesses, assets and liabilities that Liberty has attributed to that group. The Starz Group focuses primarily on video programming and is comprised primarily of Starz, LLC and $1,059 million (as of September 30, 2011) of cash, including subsidiary cash. The Starz Group will

I-25

also include such other businesses, assets and liabilities that the Company's board of directors may in the future determine to attribute to the Starz Group, including such other businesses as Liberty may acquire for the Starz Group.
Similarly, the term "Capital Group" also does not represent a separate legal entity, rather it represents all of Liberty's businesses, assets and liabilities other than those that have been attributed to the Starz Group. The assets and businesses attributed to the Capital Group include the Company's subsidiaries: ANLBC and TruePosition; and its interests in SIRIUS XM, Time Warner Inc., Time Warner Cable Inc., Sprint Nextel Corporation, Barnes & Noble, Inc. and Live Nation. In addition, the Company has attributed $878 million of cash, including subsidiary cash, and $750 million principal amount (as of September 30, 2011) of its exchangeable senior debentures and other parent debt to the Capital Group. The Capital Group will also include such other businesses, assets and liabilities that the Company's board of directors may in the future determine to attribute to the Capital Group, including such other businesses and assets as the Company may acquire for the Capital Group.


I-26

Results of Operations—Consolidated
General.    We provide in the tables below information regarding our Consolidated Operating Results and Other Income and Expense, as well as information regarding the contribution to those items from our reportable segments categorized by tracking stock group. The "corporate and other" category for each tracking stock group consists of those assets or businesses which do not qualify as a separate reportable segment. For a more detailed discussion and analysis of the financial results of the principal reporting segments of each tracking stock group, see "Results of Operations—Tracking Stock Groups" below. As discussed more fully in Management's Discussion and Analysis for the Starz Group the Starz Media Reattribution impacted the presentation for the Starz Group and Capital Group due to the change in attribution of the legacy Starz Media businesses to the Starz Group as of September 30, 2010. The results for Starz Media remain in the Capital Group for the nine months ended September 30, 2010, during this period those businesses were attributed to that group, and are included in the Starz Group for the nine months ended September 30, 2011 in the results of Starz, LLC (the combined entity).
Consolidated Operating Results
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
Revenue
 
 
 
 
 
 
 
Starz Group
 
 
 
 
 
 
 
Starz, LLC
$
389

 
316

 
1,183

 
929

Corporate and other

 
3

 
1

 
8

 
389

 
319

 
1,184

 
937

Capital Group
 
 
 
 
 
 
 
Starz Media

 
89

 

 
317

ANLBC
104

 
95

 
199

 
186

TruePosition
32

 
60

 
619

 
86

Corporate and other
15

 
7

 
49

 
28

 
151

 
251

 
867

 
617

Consolidated Liberty
$
540

 
570

 
2,051

 
1,554

Adjusted OIBDA
 
 
 
 
 
 
 
Starz Group
 
 
 
 
 
 
 
Starz, LLC
$
107

 
92

 
356

 
305

Corporate and other
(3
)
 
(3
)
 
(9
)
 
(10
)
 
104

 
89

 
347

 
295

Capital Group
 
 
 
 
 
 
 
Starz Media

 
(6
)
 

 
(67
)
ANLBC
19

 
13

 
11

 
8

 TruePosition
7

 
17

 
380

 
(11
)
Corporate and other
(1
)
 
1

 
(1
)
 
(7
)
 
25

 
25

 
390

 
(77
)
Consolidated Liberty
$
129

 
114

 
737

 
218

Operating Income (Loss)
 
 
 
 
 
 
 
Starz Group
 
 
 
 
 
 
 
Starz, LLC
$
101

 
87

 
337

 
288

Corporate and other
(4
)
 
(10
)
 
(16
)
 
(23
)
 
97

 
77

 
321

 
265

Capital Group