EX-99.1 9 a2202116zex-99_1.htm EX-99.1
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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.

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.

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.

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.

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.

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

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

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

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

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

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

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

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

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.

The Interactive Group focuses on video and on-line commerce businesses. Accordingly, we expect that businesses that we may acquire in the future that we believe are complementary to this strategy will also be attributed to the Interactive Group.

The Starz Group consists primarily of our subsidiary Starz, LLC, and approximately $878 million (as of December 31, 2010) of cash, including subsidiary cash. In addition, as of September 30, 2010 Starz Media, LLC ("Starz Media") is attributed to the Starz Group. Accordingly, the accompanying attributed financial information for the Starz Group includes the assets, liabilities, revenue, expenses and cash flows of Starz Entertainment and Starz Media as of September 30, 2010.

The Starz Group focuses primarily on programming businesses. Accordingly, we expect that businesses that we may acquire in the future that we believe are complementary to Starz will also be attributed to the Starz Group.

The Capital Group consists of all of our businesses not included in the Interactive Group or the Starz Group, including our consolidated subsidiaries Starz Media, LLC through September 30, 2010, Atlanta National League Baseball Club, Inc. and TruePosition, Inc., and certain cost and equity investments. Accordingly, the accompanying attributed financial information for the Capital Group includes these investments and the assets, liabilities, revenue, expenses and cash flows of these consolidated subsidiaries. In addition, we have attributed to the Capital Group all of our notes and debentures (and related interest expense) that have not been attributed to the Interactive Group or the Starz Group. See note 4 below for the debt obligations attributed to the Capital Group.

Any businesses that we may acquire in the future that we do not attribute to the Interactive Group or the Starz Group will be attributed to the Capital Group.

While we believe the allocation methodology described above is reasonable and fair to each group, we may elect to change the allocation methodology in the future. In the event we elect to transfer assets or businesses from one group to the other, such transfer would be made on a fair value basis and would be accounted for as a short-term loan unless our board of directors determines to account for it as a long-term loan or through an inter-group interest.

Notes to Attributed Financial Information

(unaudited)

On February 25, 2010, Liberty announced that its board of directors had resolved to effect the following changes in attribution between the Capital Group and the Interactive Group, effective immediately (the "February Reattribution"):

•

the change in attribution from the Interactive Group to the Capital Group of Liberty's 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.

The Liberty Media board determined that the February Reattribution would enable the Liberty Interactive Group to obtain long-term debt financing on better terms than would have been available to it in the capital markets at that time and improve the liquidity of the Liberty Interactive Group. In addition, the Liberty Interactive Group's generation of meaningful taxable income would better position it to utilize more directly and efficiently the tax benefits associated with the Exchangeable Notes. Previously, the Liberty Interactive Group was using these tax benefits, which were then attributed to the Liberty Capital Group, and compensating the Liberty Capital Group for such use. Lastly, the Liberty Media board believed that Liberty Media's equity interests in Live Nation Entertainment should be reattributed to the Liberty Capital Group in order to position it to take advantage of potential synergies associated with the Liberty Capital Group's then recent acquisition of its interests in Sirius XM Radio.

In establishing the terms of the February Reattribution, the Liberty Media board reviewed, among other things, (i) a range of estimated values for the Exchangeable Notes (between $482 million and $526 million), which took into account the trading prices of the Exchangeable Notes and their unique tax attributes, among other things, and (ii) the estimated value of Liberty Media's equity interests in Live Nation Entertainment (approximately $298 million), which was based on the $12 per share at which Liberty Media publicly tendered for additional shares of Live Nation during February 2010. Consistent with Liberty Media's Management and Allocation Policies, the Liberty Media board determined that the exchange of assets and liabilities between the two groups in the February Reattribution was completed on a fair value basis.

Liberty has accounted for the February Reattribution prospectively. This change in attribution had no effect on the balance sheet and results of operations attributed to the Starz Group.

Notes to Attributed Financial Information

(unaudited)

The February Reattribution between the groups resulted in the following impact to attributed net assets:

			Interactive 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

The assets and liabilities were reattributed at their book values versus the estimated fair values of those assets and liabilities that were considered by our board of directors, among other factors, in approving the reattribution. As a result, on a book value basis there is a transfer of net assets between the tracking stocks of $1,285 million. The principal reasons for the difference between fair value and book value is (i) the deferred tax liabilities under GAAP are required to be carried at the gross undiscounted basis difference multiplied by the company's effective tax rate whereas on a fair value basis, these future tax liabilities are not expected to be incurred for many years and therefore their present discounted value is substantially less, and (ii) the senior exchangeables are expected to continue to generate interest deductions for tax purposes in excess of the annual cash coupon over their remaining life, the present value of which is not reflected in the book values of the reattributed assets and liabilities.

On September 16, 2010, Liberty Media's board of directors approved a change in attribution of Liberty Media's 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 $54.9 million owed by Liberty Media's Capital Group to its Starz Group has been extinguished, and its Starz Group has become attributed with approximately $53.7 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, the board determined that certain tax benefits relating to the operation of the Starz Media, LLC business by Liberty Media's Capital Group that may be realized from any future sale or other disposition of that business by Liberty Media's Starz Group will remain attributed to its Capital Group.

The Starz Media Reattribution enabled the Liberty Starz Group to acquire the complementary Starz Media business. Starz Entertainment had been engaging in mutually beneficial content distribution and programming arrangements with Starz Media, and it was inefficient for these arrangements to be treated as inter-group transactions. Accordingly, the Liberty Media board

Notes to Attributed Financial Information

(unaudited)

reattributed Starz Media, and its related debt, from the Liberty Capital Group to the Liberty Starz Group. This also enabled the Liberty Capital Group to repay indebtedness it owed to the Liberty Starz Group without using any of its cash reserves.

In establishing the terms of the Starz Reattribution, the Liberty Media board considered, among other things, (i) a range of estimated values for the Starz Media assets (between $95 million and $122 million), (ii) the $53.7 million in Starz Media liabilities to be assumed and (iii) the $54.9 million payable owed by the Liberty Capital Group to the Liberty Starz Group. Consistent with Liberty Media's Management and Allocation Policies, the Liberty Media board determined that the exchange of assets and liabilities between the two groups in the Starz Reattribution was completed on a fair value basis.

Liberty has accounted for the Starz Media Reattribution prospectively. This change in attribution has no impact on the balance sheet and results of operations attributed to the Interactive Group.

The assets and liabilities were attributed at their book values versus the estimated fair values of those assets and liabilities that were considered by our board of directors, among other factors, in approving the reattribution. As a result, on a book value basis there is a transfer of net assets between the tracking stock groups of $54 million from the Capital Group to the Starz Group.

During the second quarter of 2009, each of the Starz Group and the Capital Group made intergroup loans to the Interactive Group in the amount of $250 million. Such loans (i) are secured by various public stocks attributed to the Interactive Group, (ii) accrue interest quarterly at the rate of LIBOR plus 500 basis points and (iii) are due June 16, 2010. In the first quarter of 2010, the Interactive Group repaid the remaining balance of the intergroup loans by making payments of $158 million to each of the Starz Group and the Capital 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 Starz in February of 2011. Consistent with the treatment of other reattributions, this change in attribution will be on a prospective basis and is not reflected in the unaudited attributed financial information as of December 31, 2010. 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.

Notes to Attributed Financial Information

(unaudited)

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.

(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

Notes to Attributed Financial Information

(unaudited)

Ticketmaster. As a result of the merger Liberty's ownership interest was approximately 15% in the combined entity and accounts for the new investment as an AFS security. Liberty recorded the transaction at fair value and recorded a $178 million gain. At the time of the merger the investment was attributed to the Interactive Group. As a result of the February Reattribution the Live Nation investment is attributed to the Capital Group. Additionally, during the year ended December 31, 2010 Liberty acquired an approximate 3% additional interest in Live Nation. Subsequent to December 31, 2010 Liberty acquired an additional 1% interest and agreed to purchase an additional 5.5 million in shares for $57.7 million subject to Live Nation shareholder approval and other customary closing conditions.

(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
		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

Notes to Attributed Financial Information

(unaudited)

of SIRIUS XM. As a result, Liberty established an excess basis account and allocated the differences to certain fair value adjustments to the outstanding debt (at the time of our initial investment) and certain intangible assets. Even though SIRIUS XM had net income during the current year the amortization of the excess basis resulted in Liberty recording share of losses. In the third quarter of 2010 these share of losses were accelerated as SIRIUS XM refinanced certain debt which had an associated discount recorded in Liberty's excess basis account. As SIRIUS XM repays certain debt issuances where Liberty has established debt discounts, the extinguishment typically results in a loss on the retirement of Liberty's excess basis account. As of December 31, 2010, the Sirius Preferred Stock had a market value of $4,266 million based on the value of the common stock into which it is convertible.

(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

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

While we believe that this allocation method is reasonable and fair to each group, we may elect to change the allocation methodology or percentages used to allocate general and administrative expenses in the future.

(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

Notes to Attributed Financial Information

(unaudited)

The Interactive Group's income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:

		Years ended December 31,

		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

The tax effects of temporary differences that give rise to significant portions of the Interactive Group's deferred tax assets and deferred tax liabilities are presented below:

			December 31,

			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

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	)

The Starz Group's income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:

		Years ended December 31,

		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	)

Notes to Attributed Financial Information

(unaudited)

The tax effects of temporary differences that give rise to significant portions of the Starz Group's deferred tax assets and deferred tax liabilities are presented below:

			December 31,

			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

Notes to Attributed Financial Information

(unaudited)

The Capital Group's income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:

	Years ended December 31,

	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

The tax effects of temporary differences that give rise to significant portions of the Capital Group's deferred tax assets and deferred tax liabilities are presented below:

			December 31,

			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

Notes to Attributed Financial Information

(unaudited)

limited cases and will otherwise not be entitled to vote. In general, holders of Series A and Series B common stock vote as a single class. In certain limited circumstances, the board may elect to seek the approval of the holders of only Series A and Series B Liberty Interactive Stock, the approval of the holders of only Series A and Series B Liberty Starz Stock or the approval of the holders of only Series A and Series B Liberty Capital Stock.

At the option of the holder, each share of Series B common stock will be convertible into one share of Series A common stock of the same group. At the discretion of our board, the common stock related to one group may be converted into common stock of the same series that is related to one of our other groups.

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Exhibit 99.1

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)