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
 9 Months Ended
Sep. 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 nine months ended September 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 in the Company's annual financial statements filed on Form 10-K.
Performance Measures
 
Nine months ended September 30,
 
2013
 
2012
 
Revenue
 
Adjusted
OIBDA
 
Revenue
 
Adjusted
OIBDA
 
amounts in millions
SIRIUS XM
$
2,626

 
956

 
—

 
—

ANLBC
251

 
52

 
216

 
31

Corporate and other
100

 
(5
)
 
108

 
(1
)
 
$
2,977

 
1,003

 
324

 
30

 
Three months ended September 30,
 
2013
 
2012
 
Revenue
 
Adjusted
OIBDA
 
Revenue
 
Adjusted
OIBDA
 
amounts in millions
SIRIUS XM
$
959

 
353

 
—

 
—

ANLBC
119

 
31

 
114

 
26

Corporate and other
32

 
(5
)
 
40

 
3

 
$
1,110

 
379

 
154

 
29

 
 
 
 
 
 
 
 

Other Information
 
September 30, 2013
 
Total
assets
 
Investments
in affiliates
 
Capital
expenditures
 
amounts in millions
SIRIUS XM
$
28,295

 
274

 
127

ANLBC
563

 
40

 
2

Corporate and other
5,085

 
3,049

 
3

 
$
33,943

 
3,363

 
132



The following table provides a reconciliation of segment Adjusted OIBDA to earnings (loss) from continuing operations before income taxes:
 
Three months ended
September 30,
 
Nine months ended
September 30,
 
2013
 
2012
 
2013
 
2012
 
amounts in millions
Consolidated segment Adjusted OIBDA
$
379

 
29

 
1,003

 
30

Stock-based compensation
(52
)
 
(7
)
 
(141
)
 
(18
)
Depreciation and amortization
(79
)
 
(12
)
 
(237
)
 
(32
)
Interest expense
(39
)
 
(1
)
 
(78
)
 
(6
)
Dividend and interest income
12

 
22

 
37

 
65

Share of earnings (losses) of affiliates, net
(8
)
 
14

 
(12
)
 
1,307

Realized and unrealized gains (losses) on financial instruments, net
64

 
135

 
222

 
173

Gains (losses) on transactions, net
—

 
21

 
7,481

 
21

Other, net
(67
)
 
49

 
(73
)
 
59

Earnings (loss) from continuing operations before income taxes
$
210

 
250

 
8,202

 
1,599