Quarterly report pursuant to Section 13 or 15(d)

Information About Liberty's Operating Segments

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Information About Liberty's Operating Segments
 6 Months Ended
Jun. 30, 2013
Information About Liberty's Operating Segments  
Segment Reporting Disclosure [Text Block]
Information About Liberty's Operating Segments
The Company, through its ownership interests in subsidiaries and other companies, is primarily engaged in the media, communications and entertainment industries. The Company identifies its reportable segments as (A) those consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of the Company's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation.
The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, the Company reviews nonfinancial measures such as subscriber growth and penetration.
The Company defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses excluding all stock-based compensation. The Company believes this measure is an important indicator of the operational strength and performance of its businesses, including each business's ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
For the six months ended June 30, 2013, the Company has identified the following businesses as its reportable segments:
•
SIRIUS XM — consolidated subsidiary that provides a subscription based satellite radio service. SIRIUS XM broadcasts to subscribers over approximately 130 digital-quality channels, including more than 60 channels of 100% commercial-free music, plus exclusive channels of sports, news, talk, entertainment, traffic, weather and data through its two proprietary satellite radio systems - the Sirius system and the XM system.
•
ANLBC — consolidated subsidiary that owns and operates the Atlanta Braves Major League Baseball franchise.
The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, differing revenue sources and marketing strategies. The accounting policies of the segments that are also consolidated subsidiaries are the same as those described in the Company's summary of significant policies.
Performance Measures
 
Six months ended June 30,
 
2013
 
2012
 
Revenue
 
Adjusted
OIBDA
 
Revenue
 
Adjusted
OIBDA
 
amounts in millions
SIRIUS XM
$
1,667

 
622

 
—

 
—

ANLBC
132

 
21

 
102

 
5

Corporate and other
68

 
—

 
68

 
(4
)
 
$
1,867

 
643

 
170

 
1

 
Three months ended June 30,
 
2013
 
2012
 
Revenue
 
Adjusted
OIBDA
 
Revenue
 
Adjusted
OIBDA
 
amounts in millions
SIRIUS XM
$
938

 
354

 
—

 
—

ANLBC
109

 
20

 
99

 
22

Corporate and other
31

 
(2
)
 
36

 
(4
)
 
$
1,078

 
372

 
135

 
18

 
 
 
 
 
 
 
 

Other Information
 
June 30, 2013
 
Total
assets
 
Investments
in affiliates
 
Capital
expenditures
 
amounts in millions
SIRIUS XM
$
29,455

 
278

 
60

ANLBC
595

 
38

 
2

Corporate and other
3,834

 
3,099

 
2

 
$
33,884

 
3,415

 
64



The following table provides a reconciliation of segment Adjusted OIBDA to earnings (loss) from continuing operations before income taxes:
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
 
amounts in millions
Consolidated segment Adjusted OIBDA
$
372

 
18

 
643

 
1

Stock-based compensation
(48
)
 
(5
)
 
(89
)
 
(11
)
Depreciation and amortization
(88
)
 
(11
)
 
(158
)
 
(20
)
Interest expense
(28
)
 
(2
)
 
(39
)
 
(5
)
Dividend and interest income
13

 
21

 
25

 
43

Share of earnings (losses) of affiliates, net
(21
)
 
1,281

 
(4
)
 
1,293

Realized and unrealized gains (losses) on financial instruments, net
61

 
(73
)
 
158

 
38

Gains (losses) on transactions, net
2

 
—

 
7,481

 
—

Other, net
(1
)
 
8

 
(6
)
 
10

Earnings (loss) from continuing operations before income taxes
$
262

 
1,237

 
8,011

 
1,349