Annual report [Section 13 and 15(d), not S-K Item 405]

Discontinued Operations

v3.25.0.1
Discontinued Operations
12 Months Ended
Dec. 31, 2024
Discontinued Operations  
Discontinued Operations

(2) Discontinued Operations

On September 9, 2024, Liberty completed the split-off of its wholly owned subsidiary, Liberty Sirius XM Holdings (the “Liberty Sirius XM Holdings Split-Off”). The Liberty Sirius XM Holdings Split-Off was accomplished through the redemption by the Company of each outstanding share of Liberty SiriusXM common stock in exchange for 0.8375 of a share of Liberty Sirius XM Holdings common stock, with cash paid in lieu of fractional shares. Liberty Sirius XM Holdings was comprised of the businesses, assets and liabilities attributed to the Liberty SiriusXM Group immediately prior to the Liberty Sirius XM Holdings Split-Off. The Liberty Sirius XM Holdings Split-Off was intended to be tax-free to holders of Liberty SiriusXM common stock (except with respect to cash received in lieu of fractional shares).

Following the Liberty Sirius XM Holdings Split-Off, on September 9, 2024, a wholly owned subsidiary of Liberty Sirius XM Holdings merged with and into Sirius XM Holdings, with Sirius XM Holdings surviving the merger as a wholly owned subsidiary of Liberty Sirius XM Holdings (the “Merger” and, together with the Liberty Sirius XM Holdings Split-Off, the “Transactions”). As a result of the Transactions, Liberty Sirius XM Holdings became an independent public company separate from Liberty.

As disclosed in note 1, Liberty Sirius XM Holdings is presented as a discontinued operation in the Company’s consolidated financial statements as the Liberty Sirius XM Holdings Split-Off represents a strategic shift that had a major effect on the Company’s operations and financial results.

The following table presents a reconciliation of the carrying amounts of the major classes of assets and liabilities of discontinued operations to the total assets and liabilities of discontinued operations as presented in the consolidated balance sheet.

    

December 31, 2023

amounts in millions

Assets

Current assets

$

1,361

Investments in affiliates, accounted for using the equity method

 

715

Property and equipment, net

 

1,245

Intangible assets not subject to amortization

25,051

Intangible assets subject to amortization, net

 

1,014

Other assets

 

515

Total assets

$

29,901

Liabilities

Accounts payable and accrued liabilities

$

1,536

Current portion of debt

1,074

Other current liabilities

 

1,266

Long-term debt

 

10,063

Deferred income tax liabilities

 

2,245

Other liabilities

 

526

Total liabilities

$

16,710

The following table provided details about the major classes of line items constituting earnings (loss) from discontinued operations, net of tax as presented in the consolidated statements of operations. Impairment, restructuring and acquisition costs for the year ended December 31, 2024, in the table below, includes a goodwill impairment loss of $2,819 million related to the Sirius XM Holdings reportable segment and $500 million impairment of Sirius XM Holding’s equity method investment in Sirius XM Canada Holdings, Inc.

Years ended December 31,

    

2024

    

2023

    

2022

amounts in millions

Revenue

$

6,004

 

8,953

 

9,003

Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below)

2,852

4,209

4,130

Operating expense

 

461

 

681

 

637

Selling, general and administrative

 

1,030

 

1,534

 

1,638

Impairment, restructuring and acquisition costs

3,339

66

68

Depreciation and amortization

 

421

 

624

 

611

Litigation settlements, net of recoveries

31

 

8,103

 

7,145

 

7,084

Operating income (loss)

 

(2,099)

 

1,808

 

1,919

Other income (expense):

Interest expense

 

(349)

 

(534)

 

(503)

Other, net

 

122

 

(64)

 

70

 

(227)

 

(598)

 

(433)

Earnings (loss) from discontinued operations before income taxes

 

(2,326)

 

1,210

 

1,486

Income tax (expense) benefit

 

(86)

 

(224)

 

(366)

Net earnings (loss) from discontinued operations

 

(2,412)

 

986

 

1,120

Less net earnings (loss) from discontinued operations attributable to the noncontrolling interests

 

(410)

 

202

 

210

Net earnings (loss) from discontinued operations attributable to Liberty stockholders

$

(2,002)

 

784

 

910