EX-99.1 6 a2195229zex-99_1.htm EXHIBIT 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., Backcountry.com, Inc., Bodybuilding.com, LLC and BuySeasons, Inc. and our interests in IAC/InterActiveCorp, Expedia, Inc., HSN, Inc., Interval Leisure Group, Inc., Ticketmaster and Tree.com, 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 Sports, and Liberty Sports Group, our 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 nine months ended September 30, 2009 and 2008. 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 nine months ended September 30, 2009 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, 2008.

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.

SUMMARY ATTRIBUTED FINANCIAL DATA

Interactive Group

	September 30, 2009

	amounts in millions
Summary balance sheet data:
Current assets	$	3,047	3,282
Cost investments	$	903	739
Equity investments	$	860	901
Total assets	$	17,217	17,487
Long-term debt, including current portion	$	6,295	7,131
Long-term deferred income tax liabilities	$	1,952	1,999
Attributed net assets	$	6,589	6,303

		Three months ended September 30,						Nine months ended September 30,

		2009			2008			2009			2008
		amounts in millions
Summary operations data:
Revenue		$	1,827			1,798			5,594			5,702
Cost of sales			(1,182	)		(1,179	)		(3,573	)		(3,645	)
Operating expenses			(172	)		(173	)		(519	)		(534	)
Selling, general and administrative expenses(1)			(140	)		(142	)		(437	)		(425	)
Depreciation and amortization			(139	)		(143	)		(421	)		(418	)

	Operating income		194			161			644			680
Interest expense			(147	)		(122	)		(353	)		(365	)
Other than temporary declines in fair value of investments			—			(440	)		—			(440	)
Other expense, net			(57	)		(38	)		(159	)		(27	)
Income tax benefit (expense)			13			164			(41	)		111

	Net earnings (loss)		3			(275	)		91			(41	)
Less net earnings attributable to the noncontrolling interests			9			8			26			25

Net earnings (loss) attributable to Liberty Media Corporation shareholders		$	(6	)		(283	)		65			(66	)

(1): Includes stock-based compensation of $12 million and $8 million for the three months ended September 30, 2009 and 2008, respectively; and $33 million and $25 million for the nine months ended September 30, 2009 and 2008, respectively.

SUMMARY ATTRIBUTED FINANCIAL DATA

Entertainment Group

	September 30, 2009

	amounts in millions
Summary balance sheet data:
Current assets	$	1,416	1,631
Equity investments	$	13,840	13,366
Total assets	$	16,314	16,322
Long-term debt, including current portion	$	1,937	2,033
Long-term deferred income tax liabilities	$	1,737	1,735
Attributed net assets	$	12,507	12,180

		Three months ended September 30,						Nine months ended September 30,

		2009			2008			2009			2008
		amounts in millions
Summary operations data:
Revenue		$	369			362			1,105			1,031
Operating expenses			(234	)		(238	)		(651	)		(664	)
Selling, general and administrative expenses(1)			(69	)		(65	)		(207	)		(187	)
Depreciation and amortization			(7	)		(12	)		(27	)		(36	)

	Operating income		59			47			220			144
Gains (losses) on dispositions, net			—			(2	)		(54	)		3,664
Share of earnings of affiliates, net			124			116			316			314
Other income (expense), net			(180	)		82			(217	)		(20	)
Income tax benefit (expense)			(1	)		(96	)		(33	)		1,611

	Net earnings	$	2			147			232			5,713

(1): Includes stock-based compensation of $20 million and $15 million for the three months ended September 30, 2009 and 2008, respectively, and $60 million and $37 million for the nine months ended September 30, 2009 and 2008, respectively.

SUMMARY ATTRIBUTED FINANCIAL DATA

Capital Group

	September 30, 2009

	amounts in millions
Summary balance sheet data:
Current assets	$	4,134	2,973
Cost investments	$	3,283	2,118
Total assets	$	9,548	8,361
Long-term debt, including current portion	$	3,852	3,063
Long-term deferred income tax liabilities	$	560	1,166
Attributed net assets	$	1,069	1,121

		Three months ended September 30,						Nine months ended September 30,

		2009			2008			2009			2008
		amounts in millions
Summary operations data:
Revenue		$	171			218			495			483
Operating expenses			(146	)		(171	)		(381	)		(383	)
Selling, general and administrative expenses(1)			(99	)		(140	)		(218	)		(296	)
Depreciation and amortization			(20	)		(24	)		(62	)		(78	)
Impairment of long-lived assets			—			(34	)		—			(34	)

	Operating loss		(94	)		(151	)		(166	)		(308	)
Interest expense			(29	)		(43	)		(102	)		(124	)
Realized and unrealized gains (losses) on financial instruments, net			(98	)		14			(58	)		(188	)
Gains (losses) on dispositions, net			(17	)		—			96			15
Other income, net			20			29			82			81
Income tax benefit			86			39			57			215

	Net loss		(132	)		(112	)		(91	)		(309	)
Less net earnings attributable to the noncontrolling interests			—			—			—			4

Net loss attributable to Liberty Media Corporation shareholders		$	(132	)		(112	)		(91	)		(313	)

(1): Includes stock-based compensation of $3 million and $1 million for the three months ended September 30, 2009 and 2008, respectively; and $5 million for each of the nine month periods ended September 30, 2009 and 2008.

BALANCE SHEET INFORMATION
September 30, 2009
(unaudited)

			Attributed (note 1)

			Interactive Group			Entertainment Group			Capital Group			Inter-group eliminations			Consolidated Liberty
			amounts in millions
Assets
Current assets:
	Cash and cash equivalents		$	816			577			2,923			—			4,316
	Trade and other receivables, net			912			247			74			—			1,233
	Inventory, net			1,106			—			—			—			1,106
	Program rights			—			518			—			—			518
	Financial instruments			—			—			1,036			—			1,036
	Current deferred tax assets			135			68			—			(203	)		—
	Other current assets			78			6			101			—			185

		Total current assets		3,047			1,416			4,134			(203	)		8,394

Investments in available-for-sale securities and other cost investments (note 2)				903			2			3,283			—			4,188
Investments in affiliates, accounted for using the equity method (note 3)				860			13,840			278			—			14,978
Property and equipment, net				1,013			113			137			—			1,263
Goodwill				5,900			368			201			—			6,469
Trademarks				2,492			2			14			—			2,508
Intangible assets subject to amortization, net				2,923			121			196			—			3,240
Other assets, at cost, net of accumulated amortization				79			452			1,305			—			1,836

		Total assets	$	17,217			16,314			9,548			(203	)		42,876

Liabilities and Equity
Current liabilities:
	Accounts payable		$	584			8			28			—			620
	Accrued interest			44			—			16			—			60
	Other accrued liabilities			535			207			147			—			889
	Intergroup payable (receivable)			(24	)		(103	)		127			—			—
	Intergroup notes (note 1)			510			(255	)		(255	)		—			—
	Financial instruments			117			25			865			—			1,007
	Current portion of debt (note 4)			725			752			1,538			—			3,015
	Accrued stock compensation			20			205			7			—			232
	Current deferred tax liabilities			—			—			1,618			(203	)		1,415
	Other current liabilities			112			5			31			—			148

		Total current liabilities		2,623			844			4,122			(203	)		7,386

Long-term debt (note 4)				5,570			1,185			2,314			—			9,069
Long-term financial instruments				169			32			9			—			210
Deferred income tax liabilities (note 6)				1,952			1,737			560			—			4,249
Other liabilities				196			9			1,473			—			1,678

		Total liabilities		10,510			3,807			8,478			(203	)		22,592
Equity/Attributed net assets				6,589			12,507			1,069			—			20,165
Noncontrolling interests in equity of subsidiaries				118			—			1			—			119

		Total liabilities and equity	$	17,217			16,314			9,548			(203	)		42,876

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

						Attributed (note 1)

						Interactive Group			Entertainment Group			Capital Group			Consolidated Liberty
						amounts in millions
Revenue:
	Net retail sales					$	1,827			—			—			1,827
	Communications and programming services						—			369			171			540

							1,827			369			171			2,367

Operating costs and expenses:
	Cost of sales						1,182			—			—			1,182
	Operating						172			234			146			552
	Selling, general and administrative, including stock-based compensation (notes 1 and 5)						140			69			99			308
	Depreciation and amortization						139			7			20			166

							1,633			310			265			2,208

			Operating income (loss)				194			59			(94	)		159
Other income (expense):
	Interest expense						(147	)		(18	)		(29	)		(194	)
	Dividend and interest income						1			1			23			25
	Intergroup interest income (expense)						(8	)		4			4			—
	Share of earnings (losses) of affiliates, net						36			124			(22	)		138
	Realized and unrealized losses on financial instruments, net						(67	)		(161	)		(98	)		(326	)
	Gains (losses) on dispositions, net						3			—			(17	)		(14	)
	Other, net						(22	)		(6	)		15			(13	)

							(204	)		(56	)		(124	)		(384	)

		Earnings (loss) before income taxes					(10	)		3			(218	)		(225	)
Income tax benefit (expense) (note 6)							13			(1	)		86			98

		Net earnings (loss)					3			2			(132	)		(127	)
Less net earnings attributable to the noncontrolling interests							9			—			—			9

Net earnings (loss) attributable to Liberty Media Corporation shareholders						$	(6	)		2			(132	)		(136	)

Net earnings (loss)						$	3			2			(132	)		(127	)

Other comprehensive earnings (loss), net of taxes:
	Foreign currency translation adjustments						41			—			1			42
	Unrealized holding gains arising during the period						143			—			20			163
	Recognition of previously unrealized gains on available-for-sale securities, net						(1	)		—			(1	)		(2	)
	Share of other comprehensive earnings of equity affiliates						—			21			—			21
	Other						(3	)		—			—			(3	)

				Other comprehensive earnings			180			21			20			221

					Comprehensive earnings (loss)		183			23			(112	)		94
Less comprehensive earnings attributable to the noncontrolling interests							17			—			—			17

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders						$	166			23			(112	)		77

STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Three months ended September 30, 2008
(unaudited)

						Attributed (note 1)

						Interactive Group			Entertainment Group			Capital Group			Consolidated Liberty
						amounts in millions
Revenue:
	Net retail sales					$	1,798			—			—			1,798
	Communications and programming services						—			362			218			580

							1,798			362			218			2,378

Operating costs and expenses:
	Cost of sales						1,179			—			—			1,179
	Operating						173			238			171			582
	Selling, general and administrative, including stock-based compensation (notes 1 and 5)						142			65			140			347
	Depreciation and amortization						143			12			24			179
	Impairment of long-lived assets						—			—			34			34

							1,637			315			369			2,321

			Operating income (loss)				161			47			(151	)		57
Other income (expense):
	Interest expense						(122	)		(25	)		(43	)		(190	)
	Dividend and interest income						5			5			28			38
	Share of earnings of affiliates, net						23			116			2			141
	Realized and unrealized gains (losses) on financial instruments, net						(43	)		106			14			77
	Losses on dispositions, net						—			(2	)		—			(2	)
	Other than temporary declines in fair value of investments						(440	)		(4	)		—			(444	)
	Other, net						(23	)		—			(1	)		(24	)

							(600	)		196			—			(404	)

		Earnings (loss) before income taxes					(439	)		243			(151	)		(347	)
Income tax benefit (expense) (note 6)							164			(96	)		39			107

		Net earnings (loss)					(275	)		147			(112	)		(240	)
Less net earnings attributable to the noncontrolling interests							8			—			—			8

Net earnings (loss) attributable to Liberty Media Corporation shareholders						$	(283	)		147			(112	)		(248	)

Net earning (loss)						$	(275	)		147			(112	)		(240	)

Other comprehensive earnings (loss), net of taxes:
	Foreign currency translation adjustments						(114	)		—			(1	)		(115	)
	Unrealized holding losses arising during the period						(42	)		—			—			(42	)
	Recognition of previously unrealized losses on available-for-sale securities, net						273			—			—			273
	Share of other comprehensive loss of equity affiliates						(2	)		(2	)		—			(4	)

				Other comprehensive earnings (loss)			115			(2	)		(1	)		112

					Comprehensive earnings (loss)		(160	)		145			(113	)		(128	)
Less comprehensive earnings attributable to Liberty Media Corporation shareholder							8			—			—			8

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders						$	(168	)		145			(113	)		(136	)

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

						Attributed (note 1)

						Interactive Group			Entertainment Group			Capital Group			Consolidated Liberty
						amounts in millions
Revenue:
	Net retail sales					$	5,594			—			—			5,594
	Communications and programming services						—			1,105			495			1,600

							5,594			1,105			495			7,194

Operating costs and expenses:
	Cost of sales						3,573			—			—			3,573
	Operating						519			651			381			1,551
	Selling, general and administrative including stock-based compensation (notes 1 and 5)						437			207			218			862
	Depreciation and amortization						421			27			62			510

							4,950			885			661			6,496

			Operating income (loss)				644			220			(166	)		698
Other income (expense):
	Interest expense						(353	)		(54	)		(102	)		(509	)
	Dividend and interest income						7			2			90			99
	Intergroup interest income (expense)						(10	)		5			5			—
	Share of earnings (losses) of affiliates, net						(47	)		316			(26	)		243
	Realized and unrealized losses on financial instruments, net						(114	)		(235	)		(58	)		(407	)
	Gains on dispositions, net						—			54			96			150
	Other, net						5			(43	)		13			(25	)

							(512	)		45			18			(449	)

		Earnings (loss) before income taxes					132			265			(148	)		249
Income tax benefit (expense) (note 6)							(41	)		(33	)		57			(17	)

		Net earnings (loss)					91			232			(91	)		232
Less net earnings attributable to the noncontrolling interests							26			—			—			26

Net earnings (loss) attributable to Liberty Media Corporation shareholders						$	65			232			(91	)		206

Net earnings (loss)						$	91			232			(91	)		232

Other comprehensive earnings (loss), net of taxes:
	Foreign currency translation adjustments						21			—			2			23
	Unrealized holding gains arising during the period						151			—			33			184
	Recognition of previously unrealized gains on available-for-sale securities, net						—			(1	)		(1	)		(2	)
	Share of other comprehensive earnings (loss) of equity affiliates						(5	)		16			—			11
	Other						34			—			—			34

				Other comprehensive earnings			201			15			34			250

					Comprehensive earnings (loss)		292			247			(57	)		482
Less comprehensive earnings attributable to the noncontrolling interests							24			—			—			24

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders						$	268			247			(57	)		458

STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Nine months ended September 30, 2008
(unaudited)

						Attributed (note 1)

						Interactive Group			Entertainment Group			Capital Group			Consolidated Liberty
						amounts in millions
Revenue:
	Net retail sales					$	5,702			—			—			5,702
	Communications and programming services						—			1,031			483			1,514

							5,702			1,031			483			7,216

Operating costs and expenses:
	Cost of sales						3,645			—			—			3,645
	Operating						534			664			383			1,581
	Selling, general and administrative including stock-based compensation (notes 1 and 5)						425			187			296			908
	Depreciation and amortization						418			36			78			532
	Impairment of long-lived assets						—			—			34			34

							5,022			887			791			6,700

			Operating income (loss)				680			144			(308	)		516
Other income (expense):
	Interest expense						(365	)		(54	)		(124	)		(543	)
	Dividend and interest income						18			14			106			138
	Share of earnings (losses) of affiliates, net						58			314			(21	)		351
	Realized and unrealized gains (losses) on financial instruments, net						(81	)		24			(188	)		(245	)
	Gains on dispositions, net						—			3,664			15			3,679
	Other than temporary declines in fair value of investments						(440	)		(4	)		(1	)		(445	)
	Other, net						(22	)		—			(3	)		(25	)

							(832	)		3,958			(216	)		2,910

		Earnings (loss) before income taxes					(152	)		4,102			(524	)		3,426
Income tax benefit (note 6)							111			1,611			215			1,937

		Net earnings (loss)					(41	)		5,713			(309	)		5,363
Less net earnings attributable to the noncontrolling interests							25			—			4			29

Net earnings (loss) attributable to Liberty Media Corporation shareholders						$	(66	)		5,713			(313	)		5,334

Net earnings (loss)						$	(41	)		5,713			(309	)		5,363

Other comprehensive earnings (loss), net of taxes:
	Foreign currency translation adjustments						(32	)		—			(3	)		(35	)
	Unrealized holding losses arising during the period						(447	)		(312	)		(2	)		(761	)
	Recognition of previously unrealized losses (gains) on available-for-sale securities, net						273			(2,273	)		—			(2,000	)
	Share of other comprehensive loss of equity affiliates						(1	)		(5	)		—			(6	)
	Other						(1	)		—			—			(1	)

				Other comprehensive loss			(208	)		(2,590	)		(5	)		(2,803	)

					Comprehensive earnings (loss)		(249	)		3,123			(314	)		2,560
Less comprehensive earnings attributable to the noncontrolling interests							30			—			4			34

Comprehensive earnings (loss) attributable to Liberty Media Corporation shareholders						$	(279	)		3,123			(318	)		2,526

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

				Attributed (note 1)

				Interactive Group			Entertainment Group			Capital Group			Consolidated Liberty
				amounts in millions
Cash flows from operating activities:
	Net earnings (loss)			$	91			232			(91	)		232
	Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
		Depreciation and amortization			421			27			62			510
		Stock-based compensation			33			60			5			98
		Cash payments for stock based compensation			(9	)		(2	)		—			(11	)
		Noncash interest expense			63			52			—			115
		Share of losses (earnings) of affiliates, net			47			(316	)		26			(243	)
		Cash receipts from return on equity investments			—			28			—			28
		Realized and unrealized losses on financial instruments, net			114			235			58			407
		Gains on disposition of assets, net			—			(54	)		(96	)		(150	)
		Intergroup tax allocation			116			80			(196	)		—
		Intergroup tax payments			(168	)		(121	)		289			—
		Other intergroup cash transfers, net			—			(53	)		53			—
		Deferred income tax benefit			(162	)		(49	)		(1	)		(212	)
		Other noncash charges (credits), net			(7	)		45			41			79
		Changes in operating assets and liabilities, net of the effects of acquisitions and dispositions:
			Current and other assets		183			(94	)		35			124
			Payables and other current liabilities		(23	)		62			54			93

Net cash provided by operating activities					699			132			239			1,070

Cash flows from investing activities:
	Cash proceeds from dispositions				82			65			206			353
	Proceeds from settlement of financial instruments				7			21			1,067			1,095
	Cash paid for acquisitions, net of cash acquired				(2	)		(1	)		(1	)		(4	)
	Investments in and loans to cost and equity investees				(23	)		(90	)		(705	)		(818	)
	Repayment of loan by equity investee				—			—			409			409
	Capital expended for property and equipment				(132	)		(10	)		(10	)		(152	)
	Net sales of short term investments				—			—			58			58
	Net decrease (increase) in restricted cash				(13	)		1			75			63
	Other investing activities, net				(11	)		14			(25	)		(22	)

Net cash provided by (used in) investing activities					(92	)		—			1,074			982

Cash flows from financing activities:
	Borrowings of debt				1,124			—			1,970			3,094
	Intergroup debt borrowings				510			(255	)		(255	)		—
	Repayments of debt				(2,128	)		(148	)		(1,785	)		(4,061	)
	Repurchases of Liberty common stock				—			—			(3	)		(3	)
	Other financing activities, net				(124	)		49			187			112

Net cash provided by (used in) financing activities					(618	)		(354	)		114			(858	)

Effect of foreign currency rates on cash					(5	)		(8	)		—			(13	)

	Net increase (decrease) in cash and cash equivalents				(16	)		(230	)		1,427			1,181
	Cash and cash equivalents at beginning of period				832			807			1,496			3,135

	Cash and cash equivalents at end period			$	816			577			2,923			4,316

STATEMENT OF CASH FLOWS INFORMATION
Nine months ended September 30, 2008
(unaudited)

				Attributed (note 1)

				Interactive Group			Entertainment Group			Capital Group			Consolidated Liberty
				amounts in millions
Cash flows from operating activities:
	Net earnings (loss)			$	(41	)		5,713			(309	)		5,363
	Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities:
		Depreciation and amortization			418			36			78			532
		Impairment of long-lived assets			—			—			34			34
		Stock-based compensation			25			37			5			67
		Cash payments for stock-based compensation			(9	)		(12	)		(1	)		(22	)
		Noncash interest expense			2			34			1			37
		Share of losses (earnings) of affiliates, net			(58	)		(314	)		21			(351	)
		Realized and unrealized losses (gains) on financial instruments, net			81			(24	)		188			245
		Gains on disposition of assets, net			—			(3,664	)		(15	)		(3,679	)
		Other than temporary declines in fair value of investments			440			4			1			445
		Intergroup tax allocation			129			44			(173	)		—
		Intergroup tax payments			(189	)		(63	)		252			—
		Other intergroup cash transfers, net			(68	)		3			65			—
		Deferred income tax benefit			(314	)		(1,655	)		(221	)		(2,190	)
		Other noncash charges, net			24			—			53			77
		Changes in operating assets and liabilities, net of the effects of acquisitions:
			Current and other assets		116			(46	)		(154	)		(84	)
			Payables and other current liabilities		(214	)		15			50			(149	)

Net cash provided (used) by operating activities					342			108			(125	)		325

Cash flows from investing activities:
	Cash proceeds from dispositions				—			6			18			24
	Net proceeds from settlement of financial instruments				—			—			12			12
	Cash received in exchange transactions				—			465			—			465
	Cash paid for acquisitions, net of cash acquired				(69	)		(7	)		(1	)		(77	)
	Investments in and loans to cost and equity investees				(340	)		(1,996	)		(213	)		(2,549	)
	Capital expended for property and equipment				(100	)		(6	)		(25	)		(131	)
	Net sales of short term investments				—			—			79			79
	Reclass of cash to short-term marketable securities				—			—			(523	)		(523	)
	Net decrease in restricted cash				—			—			367			367
	Other investing activities, net				15			(11	)		(64	)		(60	)

Net cash used by investing activities					(494	)		(1,549	)		(350	)		(2,393	)

Cash flows from financing activities:
	Borrowings of debt				1,455			1,977			1,226			4,658
	Repayments of debt				(274	)		(2	)		(1,008	)		(1,284	)
	Repurchases of Liberty common stock				(75	)		—			(407	)		(482	)
	Intergroup cash transfers, net				—			450			(450	)		—
	Other financing activities, net				(70	)		2			(18	)		(86	)

Net cash provided (used) by financing activities					1,036			2,427			(657	)		2,806

Effect of foreign currency rates on cash					1			—			—			1

	Net increase (decrease) in cash and cash equivalents				885			986			(1,132	)		739
	Cash and cash equivalents at beginning of period				557			90			2,488			3,135

	Cash and cash equivalents at end period			$	1,442			1,076			1,356			3,874

Notes to Attributed Financial Information

(unaudited)

(1): The assets attributed to our Interactive Group include our consolidated subsidiaries QVC, Inc., Provide Commerce, Inc., Backcountry.com, Inc., Bodybuilding.com, LLC and BuySeasons, Inc., and our interests in IAC/InterActiveCorp, GSI Commerce, Inc., Expedia, Inc., HSN, Inc., Interval Leisure Group, Inc., Ticketmaster and Tree.com, Inc. Accordingly, the accompanying attributed financial information for the Interactive Group includes our investments in IAC/InterActiveCorp, Expedia, GSI, HSN, Interval, Ticketmaster and Lending Tree, as well as the assets, liabilities, revenue, expenses and cash flows of QVC, Provide, Backcountry, Bodybuilding and BuySeasons. We have also attributed certain of our debt obligations (and related interest expense) to the Interactive Group based upon a number of factors, including the cash flow available to the Interactive Group and its ability to pay debt service and our assessment of the optimal capitalization for the Interactive Group. The specific debt obligations attributed to each of the Interactive Group, the Entertainment 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 Sports and Liberty Sports Group, our minority equity interests in The DIRECTV Group, Inc., GSN, LLC and WildBlue Communications, Inc. and approximately $311 million of corporate 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 an equity collar on 98.75 million shares of DIRECTV common stock and $1,888 million of borrowings (as of September 30, 2009) against the put value of such collar to the Entertainment Group.

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

During the fourth quarter of 2008, the Board of Directors of Liberty approved a plan to redeem a portion of the outstanding shares of Liberty's Entertainment Group tracking stock for all of the outstanding shares of a newly formed subsidiary of Liberty, Liberty Entertainment, Inc. ("LEI"), (the "Redemption"). The Redemption and resulting separation of LEI from Liberty are referred to as the "Split Off."

If the Redemption is completed, Liberty will redeem 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, in each case, as of a date to be determined by the board of Liberty (the "Redemption"). Immediately following the Redemption, the holders of Liberty Entertainment common stock will own 100% of the outstanding equity of LEI. At the time of the Split Off, LEI will hold Liberty's interests in DIRECTV (and related collars and debt), Liberty Sports Group and GSN and approximately $80 million in cash. In addition, Liberty and LEI have entered into a revolving credit facility pursuant to which Liberty will provide LEI with up to $300 million principal amount of loans. The Split Off is conditioned on, among other matters, receipt of stockholder approval and receipt of a tax opinion from tax counsel and (x) the satisfaction or waiver of all conditions to the Merger Transaction described below or (y) the

Notes to Attributed Financial Information (Continued)

(unaudited)

termination of the Merger Agreement described below. The Split Off and Merger Transaction are expected to occur in the fourth quarter of 2009.

On May 3, 2009, Liberty and LEI entered into an Agreement and Plan of Merger (the "Merger Agreement") with DIRECTV and other parties named therein, pursuant to which, after Liberty completes the Split Off, LEI and DIRECTV will combine under a new parent company ("New DIRECTV") (the "Merger Transaction"). The holders of LEI Series A will be entitled to receive 1.11111 shares of New DIRECTV Class A common stock for each share of LEI Series A common stock held by them (as adjusted pursuant to the Merger Agreement). The Chairman of LEI and certain related persons will receive 1.11111 shares of New DIRECTV Class B common stock for each share of LEI Series B common stock held by them (as adjusted pursuant to the Merger Agreement). All other holders of LEI Series B common stock will be entitled to receive 1.11111 shares of New DIRECTV Class A commons stock for each share of LEI Series B common stock held by them (as adjusted pursuant to the Merger Agreement). The Merger Transaction is subject to certain closing conditions.

Subsequent to the Split Off, the Entertainment Group will be renamed the Starz Group and will be comprised principally of Starz Entertainment and cash.

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.

During the second quarter of 2009, each of the Entertainment 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. Subsequent to September 30, 2009, the Interactive Group repaid $50 million of the intergroup loans to each of the Entertainment Group and the Capital Group.

Notes to Attributed Financial Information (Continued)

(unaudited)

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

				September 30, 2009

				amounts in millions
Capital Group
	Time Warner Inc.(a)			$	985	1,033
	Time Warner Cable Inc.(a)				370	—
	Sprint Nextel Corporation(a)				307	160
	Motorola, Inc.(a)				446	328
	Viacom, Inc.				213	145
	CenturyTel, Inc./Embarq Corporation(a)				196	157
	Other available-for-sale equity securities(a)				92	40
	Other available-for-sale debt securities				643	224
	Other cost investments and related receivables				31	31

		Total attributed Capital Group			3,283	2,118

Interactive Group
	IAC/InterActiveCorp				717	638
	Other				186	101

		Total attributed Interactive Group			903	739

Entertainment Group
	Other				2	2

		Total attributed Entertainment Group			2	2

			Consolidated Liberty	$	4,188	2,859

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

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

										Share of earnings (losses) nine months ended September 30,

		September 30, 2009
		Percentage ownership			Carrying value		Market value
		Percentage ownership			Carrying value		Market value			2009			2008
		dollar amounts in millions
Interactive Group
	Expedia		24	%	$	606	$	1,658		$	47		$	58
Entertainment Group
	DIRECTV		57	%	$	13,382	$	15,134		$	304		$	301
Capital Group
	Sirius		40	%	$	63	$	(a	)	$	(14	)	$	—

(a): As of September 30, 2009, the Sirius Preferred Stock had a market value of $1,656 million based on the value of the common stock into which it is convertible.

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:

			September 30, 2009

			Outstanding principal		Carrying value
			amounts in millions
Capital Group
	3.125% Exchangeable Senior Debentures due 2023		$	1,138		1,104
	4% Exchangeable Senior Debentures due 2029			469		241
	3.75% Exchangeable Senior Debentures due 2030			460		216
	3.5% Exchangeable Senior Debentures due 2031			494		306
	Liberty bank facility			750		750
	Liberty derivative loan			1,155		1,155
	Subsidiary debt			80		80

		Total attributed Capital Group debt		4,546		3,852

Interactive Group
	5.7% Senior Notes due 2013			803		801
	8.5% Senior Debentures due 2029			287		284
	8.25% Senior Debentures due 2030			504		501
	3.25% Exchangeable Senior Debentures due 2031			541		301
	QVC 7.5% Senior Secured Notes due 2019			1,000		983
	QVC bank credit facilities			3,235		3,235
	Other subsidiary debt			190		190

		Total attributed Interactive Group debt		6,560		6,295

Entertainment Group
	DIRECTV Collar Loan			1,888		1,888
	Subsidiary debt			49		49

		Total attributed Entertainment Group debt		1,937		1,937

Total debt			$	13,043		12,084

(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:

	Nine months ended September 30,

	2009		2008
	amounts in millions
Interactive Group	$	18		16
Entertainment Group	$	49		15

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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Exhibit 99.1

SUMMARY ATTRIBUTED FINANCIAL DATA
SUMMARY ATTRIBUTED FINANCIAL DATA
SUMMARY ATTRIBUTED FINANCIAL DATA
Notes to Attributed Financial Information (unaudited)