EX-99.1 6 a2185425zex-99_1.htm EX-99.1
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Exhibit 99.1


Attributed Financial Information for Tracking Stock Groups

        Our Liberty Interactive common stock is intended to reflect the separate performance of our Interactive Group which is comprised of our businesses engaged in video and on-line commerce, including our subsidiaries, QVC, Inc., Provide Commerce, Inc., BuySeasons, Inc. and Backcountry.com, Inc. and our interests in IAC/InterActiveCorp and Expedia, Inc. Our Liberty Entertainment common stock is intended to reflect the separate performance of our Entertainment Group which includes our wholly-owned subsidiaries Starz Entertainment, LLC, FUN Technologies, Inc, and three regional sports television networks, our approximate 48% ownership interest in The DIRECTV Group, Inc., as well as other minority equity interests in GSN, LLC and WildBlue Communications, Inc. Our Liberty Capital common stock is intended to reflect the separate performance of our Capital Group which is comprised of all of our assets and businesses not attributed to the Interactive Group or the Entertainment Group.

        The following tables present our assets, liabilities, revenue, expenses and cash flows as of and for the three months ended March 31, 2008 and 2007. The tables further present our assets, liabilities, revenue, expenses and cash flows that are attributed to the Interactive Group, the Entertainment Group and the Capital Group, respectively. The financial information should be read in conjunction with our unaudited condensed consolidated financial statements for the three months ended March 31, 2008 included in this Quarterly Report on Form 10-Q. The attributed financial information presented in the tables has been prepared assuming the Reclassification had been completed as of January 1, 2007.

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

1


SUMMARY ATTRIBUTED FINANCIAL DATA

Interactive Group

 
  March 31, 2008
  December 31, 2007
 
  amounts in millions

Summary balance sheet data:          
Current assets   $ 2,922   2,921
Cost investments   $ 1,849   2,044
Equity investments   $ 1,320   1,311
Total assets   $ 19,148   19,326
Long-term debt, including current portion   $ 7,661   7,177
Long-term deferred income tax liabilities   $ 2,434   2,670
Attributed net assets   $ 7,288   7,530
 
 
  Three months ended March 31,
 
 
  2008
  2007
 
 
  amounts in millions

 
Summary operations data:            
Revenue   $ 1,950   1,771  
Cost of sales     (1,238 ) (1,110 )
Operating expenses     (180 ) (164 )
Selling, general and administrative expenses(1)     (136 ) (128 )
Depreciation and amortization     (139 ) (125 )
   
 
 
    Operating income     257   244  
Interest expense     (121 ) (114 )
Other income (expense), net     (18 ) 28  
Income tax benefit (expense)     14   (60 )
Minority interests in earnings of subsidiaries     (7 ) (7 )
   
 
 
  Net earnings   $ 125   91  
   
 
 

(1)
Includes stock-based compensation of $5 million and $13 million for the three months ended March 31, 2008 and 2007, respectively.

2


SUMMARY ATTRIBUTED FINANCIAL DATA

Entertainment Group

 
  March 31, 2008
  December 31, 2007
 
  amounts in millions

Summary balance sheet data:          
Current assets   $ 1,781   793
Cost investments   $ 5   10,652
Equity investments   $ 11,052   249
Total assets   $ 15,344   13,808
Long-term debt, including current portion   $ 439   473
Long-term deferred income tax liabilities   $ 1,749   3,521
Attributed net assets   $ 12,807   9,457
 
 
  Three months ended March 31,
 
 
  2008
  2007
 
 
  amounts in millions

 
Summary operations data:            
Revenue   $ 310   280  
Operating expenses     (187 ) (175 )
Selling, general and administrative expenses(1)     (49 ) (44 )
Depreciation and amortization     (12 ) (11 )
   
 
 
  Operating income     62   50  
Gain on dispositions, net     3,667    
Other income, net     34   18  
Income tax benefit (expense)     1,740   (21 )
Minority interests in losses of subsidiaries       2  
   
 
 
  Net earnings   $ 5,503   49  
   
 
 

(1)
Includes stock-based compensation of $7 million and $8 million for the three months ended March 31, 2008 and 2007, respectively.

3


SUMMARY ATTRIBUTED FINANCIAL DATA

Capital Group

 
  March 31, 2008
  December 31, 2007
 
  amounts in millions

Summary balance sheet data:          
Current assets   $ 2,633   2,759
Cost investments   $ 3,433   4,873
Total assets   $ 10,502   12,679
Long-term debt, including current portion   $ 3,902   4,065
Long-term deferred income tax liabilities   $ 1,769   2,267
Attributed net assets   $ 1,993   2,599
 
 
  Three months ended March 31,
 
 
  2008
  2007
 
 
  amounts in millions

 
Summary operations data:            
Revenue   $ 91   72  
Operating expenses     (74 ) (65 )
Selling, general and administrative expenses(1)     (80 ) (37 )
Depreciation and amortization     (26 ) (15 )
   
 
 
    Operating loss     (89 ) (45 )
Interest expense     (38 ) (31 )
Realized and unrealized gains (losses) on financial instruments, net     (243 ) 352  
Other income, net     52   31  
Income tax benefit (expense)     152   (121 )
Minority interests in losses (earnings) of subsidiaries     (5 ) 1  
   
 
 
  Earnings (loss) from continuing operations     (171 ) 187  
Earnings from discontinued operations, net of taxes       42  
   
 
 
    Net earnings (loss)   $ (171 ) 229  
   
 
 

(1)
Includes stock-based compensation of $4 million and $1 million for the three months ended March 31, 2008 and 2007, respectively.

4


BALANCE SHEET INFORMATION
March 31, 2008
(unaudited)

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

Assets                      
Current assets:                      
  Cash and cash equivalents   $ 646   981   2,259     3,886
  Trade and other receivables, net     992   237   168     1,397
  Inventory, net     1,022         1,022
  Program rights       488       488
  Financial instruments     10     23     33
  Current deferred tax assets     191   68     (259 )
  Other current assets     61   7   183     251
   
 
 
 
 
    Total current assets     2,922   1,781   2,633   (259 ) 7,077
   
 
 
 
 
Investments in available-for-sale securities and other cost investments (note 2)     1,849   5   3,433     5,287
Long-term financial instruments     2     1,908     1,910
Investments in affiliates, accounted for using the equity method (note 3)     1,320   11,052   244     12,616
Property and equipment, net     1,116   128   158     1,402
Goodwill     5,964   1,749   428     8,141
Trademarks     2,490   7   18     2,515
Intangible assets subject to amortization, net     3,441   171   298     3,910
Other assets, at cost, net of accumulated amortization     44   451   1,382     1,877
   
 
 
 
 
    Total assets   $ 19,148   15,344   10,502   (259 ) 44,735
   
 
 
 
 
Liabilities and Equity                      
Current liabilities:                      
  Accounts payable   $ 493   7   21     521
  Accrued interest     64   2   32     98
  Other accrued liabilities     614   141   113     868
  Intergroup payable (receivable)     45   (22 ) (23 )  
  Financial instruments     30   8   769     807
  Current portion of debt (note 4)     23   116   40     179
  Accrued stock compensation     17   179   6     202
  Current deferred tax liabilities         471   (259 ) 212
  Other current liabilities     27   8   141     176
   
 
 
 
 
    Total current liabilities     1,313   439   1,570   (259 ) 3,063
   
 
 
 
 
Long-term debt (note 4)     7,638   323   3,862     11,823
Long-term financial instruments     152     2     154
Deferred income tax liabilities (note 6)     2,434   1,749   1,769     5,952
Other liabilities     212   26   1,297     1,535
   
 
 
 
 
    Total liabilities     11,749   2,537   8,500   (259 ) 22,527
Minority interests in equity of subsidiaries     111     9     120
Equity/Attributed net assets     7,288   12,807   1,993     22,088
   
 
 
 
 
    Total liabilities and equity   $ 19,148   15,344   10,502   (259 ) 44,735
   
 
 
 
 

5


STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Three months ended March 31, 2008
(unaudited)

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

 
Revenue:                    
  Net retail sales   $ 1,950       1,950  
  Communications and programming services       310   91   401  
   
 
 
 
 
      1,950   310   91   2,351  
   
 
 
 
 
Operating costs and expenses:                    
  Cost of sales     1,238       1,238  
  Operating     180   187   74   441  
  Selling, general and administrative, including stock-based compensation (notes 1 and 5)     136   49   80   265  
  Depreciation and amortization     139   12   26   177  
   
 
 
 
 
      1,693   248   180   2,121  
   
 
 
 
 
      Operating income (loss)     257   62   (89 ) 230  
Other income (expense):                    
  Interest expense     (121 ) (7 ) (38 ) (166 )
  Dividend and interest income     6   3   50   59  
  Share of earnings (losses) of affiliates, net     12   43   (10 ) 45  
  Realized and unrealized losses on financial instruments, net     (37 ) (5 ) (243 ) (285 )
  Gains on dispositions, net       3,667   15   3,682  
  Other, net     1     (3 ) (2 )
   
 
 
 
 
      (139 ) 3,701   (229 ) 3,333  
   
 
 
 
 
    Earnings (loss) before income taxes and minority interests     118   3,763   (318 ) 3,563  
Income tax benefit (note 6)     14   1,740   152   1,906  
Minority interests in earnings of subsidiaries     (7 )   (5 ) (12 )
   
 
 
 
 
    Net earnings (loss)   $ 125   5,503   (171 ) 5,457  
   
 
 
 
 
Other comprehensive earnings (loss), net of taxes:                    
  Foreign currency translation adjustments     85     (3 ) 82  
  Unrealized holding losses arising during the period     (331 ) (314 )   (645 )
  Recognition of previously unrealized gains on available-for-sale securities, net       (2,273 )   (2,273 )
  Change in fair value of cash flow hedges     (48 )     (48 )
   
 
 
 
 
        Other comprehensive loss     (294 ) (2,587 ) (3 ) (2,884 )
   
 
 
 
 
          Comprehensive earnings (loss)   $ (169 ) 2,916   (174 ) 2,573  
   
 
 
 
 

6


STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Three months ended March 31, 2007
(unaudited)

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

 
Revenue:                    
  Net retail sales   $ 1,771       1,771  
  Communications and programming services       280   72   352  
   
 
 
 
 
      1,771   280   72   2,123  
   
 
 
 
 
Operating costs and expenses:                    
  Cost of sales     1,110       1,110  
  Operating     164   175   65   404  
  Selling, general and administrative, including stock-based compensation (notes 1 and 5)     128   44   37   209  
  Depreciation and amortization     125   11   15   151  
   
 
 
 
 
      1,527   230   117   1,874  
   
 
 
 
 
      Operating income (loss)     244   50   (45 ) 249  
Other income (expense):                    
  Interest expense     (114 ) (5 ) (31 ) (150 )
  Dividend and interest income     11   29   35   75  
  Share of earnings (losses) of affiliates, net     15   5   (11 ) 9  
  Realized and unrealized gains (losses) on financial instruments, net     2   (10 ) 352   344  
  Gains on dispositions, net         6   6  
  Other, net       (1 ) 1    
   
 
 
 
 
      (86 ) 18   352   284  
   
 
 
 
 
    Earnings from continuing operations before income taxes and minority interests     158   68   307   533  
Income tax expense (note 6)     (60 ) (21 ) (121 ) (202 )
Minority interests in losses (earnings) of subsidiaries     (7 ) 2   1   (4 )
   
 
 
 
 
    Earnings from continuing operations     91   49   187   327  
Earnings from discontinued operations, net of taxes         42   42  
   
 
 
 
 
    Net earnings   $ 91   49   229   369  
   
 
 
 
 
Other comprehensive earnings (loss), net of taxes:                    
  Foreign currency translation adjustments     12     (1 ) 11  
  Unrealized holding gains (losses) arising during the period     17   588   (330 ) 275  
  Recognition of previously unrealized gains on available-for-sale securities, net         (4 ) (4 )
   
 
 
 
 
        Other comprehensive earnings (loss)     29   588   (335 ) 282  
   
 
 
 
 
          Comprehensive earnings (loss)   $ 120   637   (106 ) 651  
   
 
 
 
 

7


STATEMENT OF CASH FLOWS INFORMATION
Three months ended March 31, 2008
(unaudited)

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

 
Cash flows from operating activities:                      
  Net earnings (loss)   $ 125     5,503   (171 ) 5,457  
  Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities:                      
    Depreciation and amortization     139     12   26   177  
    Stock-based compensation     5     7   4   16  
    Cash payments for stock-based compensation     (1 )   (10 ) (1 ) (12 )
    Share of losses (earnings) of affiliates, net     (12 )   (43 ) 10   (45 )
    Realized and unrealized losses on financial instruments, net     37     5   243   285  
    Gains on disposition of assets, net         (3,667 ) (15 ) (3,682 )
    Minority interests in earnings of subsidiaries     7       5   12  
    Intergroup tax allocation     41     21   (62 )  
    Intergroup tax payments     (22 )   (8 ) 30    
    Other intergroup cash transfers, net     (69 )   (31 ) 100    
    Deferred income tax benefit     (68 )   (1,763 ) (272 ) (2,103 )
    Other noncash charges, net     2       17   19  
    Changes in operating assets and liabilities, net of the effects of acquisitions:                      
      Current assets     151     (18 ) (59 ) 74  
      Payables and other current liabilities     (247 )   (12 ) 85   (174 )
   
 
 
 
 
        Net cash provided (used) by operating activities     88     (4 ) (60 ) 24  
   
 
 
 
 
Cash flows from investing activities:                      
  Cash proceeds from dispositions           15   15  
  Net proceeds from settlement of financial instruments           12   12  
  Cash received in exchange transactions         465     465  
  Capital expended for property and equipment     (35 )   (1 ) (18 ) (54 )
  Net sales of short term investments           67   67  
  Investments in and loans to cost and equity investees     (339 )     (48 ) (387 )
  Net decrease in restricted cash           140   140  
  Other investing activities, net     5     (11 ) (13 ) (19 )
   
 
 
 
 
        Net cash provided (used) by investing activities     (369 )   453   155   239  
   
 
 
 
 
Cash flows from financing activities:                      
  Borrowings of debt     468       634   1,102  
  Repayments of debt     (3 )   (1 ) (494 ) (498 )
  Repurchases of Liberty common stock     (75 )       (75 )
  Intergroup cash transfers         450   (450 )  
  Other financing activities, net     (40 )   (7 ) (14 ) (61 )
   
 
 
 
 
        Net cash provided (used) by financing activities     350     442   (324 ) 468  
   
 
 
 
 
Effect of foreign currency rates on cash     20         20  
   
 
 
 
 
        Net increase (decrease) in cash and cash equivalents     89     891   (229 ) 751  
        Cash and cash equivalents at beginning of period     557     90   2,488   3,135  
   
 
 
 
 
        Cash and cash equivalents at end period   $ 646   $ 981   2,259   3,886  
   
 
 
 
 

8


STATEMENT OF CASH FLOWS INFORMATION
Three months ended March 31, 2007
(unaudited)

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

 
Cash flows from operating activities:                      
  Net earnings   $ 91     49   229   369  
  Adjustments to reconcile net earnings to net cash provided by operating activities:                      
    Earnings from discontinued operations           (42 ) (42 )
    Depreciation and amortization     125     11   15   151  
    Stock-based compensation     13     8   1   22  
    Cash payments for stock-based compensation     (18 )     (2 ) (20 )
    Share of losses (earnings) of affiliates, net     (15 )   (5 ) 11   (9 )
    Realized and unrealized losses (gains) on financial instruments, net     (2 )   10   (352 ) (344 )
    Gains on disposition of assets, net           (6 ) (6 )
    Minority interests in earnings (losses) of subsidiaries     7     (2 ) (1 ) 4  
    Intergroup tax payments     (68 )     68    
    Other intergroup cash transfers, net     4       (4 )  
    Deferred income tax expense (benefit)     (24 )   5   183   164  
    Other noncash charges, net     1       6   7  
    Changes in operating assets and liabilities, net of the effects of acquisitions:                      
      Current assets     120     (49 ) (56 ) 15  
      Payables and other current liabilities     (121 )   (11 ) 27   (105 )
   
 
 
 
 
        Net cash provided by operating activities     113     16   77   206  
   
 
 
 
 
Cash flows from investing activities:                      
  Cash proceeds from dispositions           121   121  
  Net proceeds from settlement of derivatives           76   76  
  Cash paid for acquisitions, net of cash acquired           (6 ) (6 )
  Capital expended for property and equipment     (82 )   (1 ) (4 ) (87 )
  Net purchases of short term investments           (172 ) (172 )
  Investments in and loans to cost and equity investees           (39 ) (39 )
  Other investing activities, net         16   (3 ) 13  
   
 
 
 
 
        Net cash provided (used) by investing activities     (82 )   15   (27 ) (94 )
   
 
 
 
 
Cash flows from financing activities:                      
  Borrowings of debt     129       2   131  
  Repayments of debt     (178 )     (151 ) (329 )
  Repurchases of Liberty common stock     (34 )       (34 )
  Intergroup cash transfers, net         (67 ) 67    
  Other financing activities, net     (11 )     (8 ) (19 )
   
 
 
 
 
        Net cash used by financing activities     (94 )   (67 ) (90 ) (251 )
   
 
 
 
 
Effect of foreign currency rates on cash     2         2  
   
 
 
 
 
Net cash provided to discontinued operations:                      
  Cash provided by operating activities           10   10  
  Cash used by investing activities           (9 ) (9 )
  Cash provided by financing activities              
  Change in available cash held by discontinued operations           (1 ) (1 )
   
 
 
 
 
        Net cash provided to discontinued operations              
   
 
 
 
 
        Net decrease in cash and cash equivalents     (61 )   (36 ) (40 ) (137 )
        Cash and cash equivalents at beginning of period     946     91   2,070   3,107  
   
 
 
 
 
        Cash and cash equivalents at end period   $ 885   $ 55   2,030   2,970  
   
 
 
 
 

9


Notes to Attributed Financial Information

(unaudited)

(1)
The assets attributed to our Interactive Group include our consolidated subsidiaries QVC, Inc., Provide Commerce, Inc., BuySeasons, Inc., Backcountry.com, Inc. and Bodybuilding.com, LLC, and our interests in IAC/InterActiveCorp, GSI Commerce, Inc. and Expedia, Inc. Accordingly, the accompanying attributed financial information for the Interactive Group includes our investments in IAC/InterActiveCorp, Expedia and GSI, as well as the assets, liabilities, revenue, expenses and cash flows of QVC, Provide, BuySeasons, Backcountry and Bodybuilding. 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 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 Entertainment 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 Entertainment Group consists of our subsidiaries Starz Entertainment, LLC, FUN Technologies, Inc and three regional sports television networks, our minority equity interests in The DIRECTV Group, Inc., GSN, LLC and WildBlue Communications, Inc. and approximately $965 million of cash and cash equivalents. Accordingly, the accompanying attributed financial information for the Entertainment Group includes these investments and the assets, liabilities, revenue, expenses and cash flows of these consolidated subsidiaries. We have also attributed $551 million principal amount of our publicly traded debt to the Entertainment Group.

    The Entertainment Group focuses primarily on programming and communications 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 Entertainment Group.

    The Capital Group consists of all of our businesses not included in the Interactive Group or the Entertainment Group, including our consolidated subsidiaries Starz Media, LLC, Atlanta National League Baseball Club, Inc., Leisure Arts, Inc., TruePosition, Inc. and WFRV and WJMN Television Station, 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 Entertainment Group. See note 4 below for the debt obligations attributed to the Capital Group.

    Any businesses that we may acquire in the future that are not attributed to the Interactive Group or the Entertainment 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.

10


Notes to Attributed Financial Information (Continued)

(unaudited)

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

 
  March 31, 2008
  December 31, 2007
 
  amounts in millions

Interactive Group          
  IAC/InterActiveCorp   $ 1,728   1,863
  Other     121   181
   
 
    Total attributed Interactive Group     1,849   2,044
   
 
Entertainment Group          
  News Corporation       10,647
  Other     5   5
   
 
    Total attributed Entertainment Group     5   10,652
   
 
Capital Group          
  Time Warner Inc. ("Time Warner")(a)     1,440   1,695
  Sprint Nextel Corporation(a)     585   1,150
  Motorola, Inc.(a)     688   1,187
  Viacom, Inc.      301   333
  Embarq Corporation(a)     175   216
  Other available-for-sale equity securities(a)     82   104
  Other available-for-sale debt securities     130   156
  Other cost investments and related receivables     32   32
   
 
    Total attributed Capital Group     3,433   4,873
   
 
      Consolidated Liberty   $ 5,287   17,569
   
 

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

(3)
Included in the Interactive Group's and the Entertainment Group's equity method investments are our investments in IAC and DIRECTV, respectively. The following table presents information regarding these investments:

 
  March 31, 2008
  Share of earnings
three months ended
March 31,

 
  Percentage
ownership

  Carrying value
   
 
  Fair value
  2008
  2007
 
  dollar amounts in millions

DIRECTV   41 % $ 10,795   $ 11,662   $ 36   $
Expedia   24 % $ 1,310   $ 1,515   $ 12   $ 7

11


Notes to Attributed Financial Information (Continued)

(unaudited)

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

 
  March 31, 2008
 
  Outstanding principal
  Carrying value
 
  amounts in millions

Interactive Group          
  7.875% Senior Notes due 2009   $ 670   669
  7.75% Senior Notes due 2009     233   234
  5.7% Senior Notes due 2013     803   801
  8.5% Senior Debentures due 2029     500   495
  8.25% Senior Debentures due 2030     902   895
  QVC bank credit facilities     4,489   4,489
  Other subsidiary debt     78   78
   
 
    Total Interactive Group debt     7,675   7,661
   
 
Entertainment Group          
  3.25% Exchangeable Senior Debentures due 2031     551   385
  Subsidiary debt     54   54
   
 
    Total Entertainment Group debt     605   439
   
 
Capital Group          
  3.125% Exchangeable Senior Debentures due 2023     1,264   1,256
  4% Exchangeable Senior Debentures due 2029     869   469
  3.75% Exchangeable Senior Debentures due 2030     810   399
  3.5% Exchangeable Senior Debentures due 2031     499   355
  Liberty bank facility     750   750
  Other parent debt     625   625
  Subsidiary debt     48   48
   
 
    Total Capital Group debt     4,865   3,902
   
 
Total debt   $ 13,145   12,002
   
 
(5)
Cash and stock-based compensation expense for our corporate employees has been allocated among the Interactive Group, the Entertainment Group and the Capital Group based on the estimated percentage of time spent providing services for each group. 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 Entertainment Group, including stock-based compensation, are as follows:

 
  Three months ended March 31,
 
  2008
  2007
 
  amounts in millions

Interactive Group   $ 6   3
Entertainment Group   $ 1   3

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Notes to Attributed Financial Information (Continued)

(unaudited)

    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 Entertainment Group and the Capital Group in the accompanying attributed financial information in a manner similar to a stand-alone company basis. To the extent this methodology differs from our tax sharing policy, differences have been reflected in the attributed net assets of the groups.

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

    At the option of the holder, each share of Series B common stock is 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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Attributed Financial Information for Tracking Stock Groups