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

Information About Liberty's Operating Segments

v3.25.0.1
Information About Liberty's Operating Segments
12 Months Ended
Dec. 31, 2024
Information About Liberty's Operating Segments  
Information About Liberty's Operating Segments

(17)  Information About Liberty’s Operating Segments

The Company, through its ownership interests in subsidiaries and other companies, is primarily engaged in the media 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 (as defined below) or total assets and (B) those equity method affiliates whose share of earnings (losses) represent 10% or more of the Company’s annual pre-tax earnings (loss).

Liberty’s chief operating decision maker, the chief executive officer, evaluates performance and makes decisions about allocating resources to the Company’s reportable segments based on financial measures such as revenue, operating expenses (including team payments and other cost of revenue), selling, general and administrative expenses, and Adjusted OIBDA (as defined below).

For segment reporting purposes, the Company defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses excluding all stock-based compensation, separately reported litigation settlements and restructuring and impairment charges. The Company believes this measure is an important indicator of the operational strength and performance of its businesses, by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. 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, restructuring, acquisition 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.

Formula 1, a reportable segment, is a global motorsports business that holds exclusive commercial rights with respect to the World Championship, an annual, approximately nine-month long, motor race-based competition in which teams compete for the Constructors’ Championship and drivers compete for the Drivers’ Championship. The World Championship takes place on various circuits with a varying number of events taking place in different countries around the world each season. Formula 1 is responsible for the commercial exploitation and development of the World Championship as well as various aspects of its management and administration.

As of December 31, 2024, Live Nation met the Company’s reportable segment threshold for equity method affiliates. See note 7 for segment disclosures related to Live Nation.

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 significant accounting policies of the segments are the same as those described in the Company’s summary of significant policies.

Performance Measures

Year ended December 31, 2024

    

    

Corporate and

    

    

Formula One

Other

Eliminations

Total

amounts in millions

Revenue

$

3,411

373

(131)

3,653

Operating expenses

 

 

 

Team payments

(1,266)

(1,266)

Other cost of revenue

(1,066)

(194)

38

(1,222)

Other operating expenses

(105)

92

(13)

Total operating expenses

(2,332)

(299)

130

(2,501)

Selling, general and administrative, excluding stock-based compensation

(288)

(98)

1

(385)

Adjusted OIBDA

$

791

(24)

767

Year ended December 31, 2023

    

    

Corporate and

    

    

Formula One

Other

Eliminations

Total

amounts in millions

Revenue

$

3,222

366

(16)

3,572

Operating expenses

 

 

 

Team payments

(1,215)

(1,215)

Other cost of revenue

(1,041)

16

(1,025)

Other operating expenses

(274)

(274)

Total operating expenses

(2,256)

(274)

16

(2,514)

Selling, general and administrative, excluding stock-based compensation

(241)

(126)

(367)

Adjusted OIBDA

$

725

(34)

691

Year ended December 31, 2022

    

    

Corporate and

    

    

Formula One

Other

Total

amounts in millions

Revenue

$

2,573

588

3,161

Operating expenses

 

 

 

Team payments

(1,157)

(1,157)

Other cost of revenue

(593)

(593)

Other operating expenses

(434)

(434)

Total operating expenses

(1,750)

(434)

(2,184)

Selling, general and administrative, excluding stock-based compensation

(230)

(135)

(365)

Adjusted OIBDA

$

593

19

612

Other Information

December 31, 2024

December 31, 2023

    

Total

    

Investments

    

Total

    

Investments

    

assets

in affiliates

assets

in affiliates

amounts in millions

Formula One Group

Formula 1

9,159

 

4

 

9,057

 

2

 

Corporate and other

 

2,727

 

29

 

1,236

 

39

 

Intergroup elimination

(127)

(26)

Total Formula One Group

11,759

33

10,267

41

Liberty Live Group

Corporate and other

1,223

458

1,162

333

Total Liberty Live Group

1,223

458

1,162

333

Elimination

(34)

(3)

Assets of discontinued operations

29,901

Consolidated Liberty

$

12,948

 

491

 

41,327

 

374

 

The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) from continuing operations before income taxes:

Years ended December 31,

 

    

2024

    

2023

    

2022

 

amounts in millions

 

Adjusted OIBDA

$

767

 

691

 

612

Stock-based compensation

 

(34)

 

(29)

 

(28)

Depreciation and amortization

 

(352)

 

(406)

 

(433)

Impairment and acquisition costs

(105)

(1)

(6)

Operating income (loss)

276

255

145

Interest expense

 

(237)

 

(248)

 

(186)

Share of earnings (losses) of affiliates, net

 

228

 

157

 

104

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

 

(383)

 

(167)

 

524

Unrealized gains (losses) on intergroup interests

(68)

19

Other, net

 

92

 

46

 

101

Earnings (loss) from continuing operations before income taxes

$

(24)

 

(25)

 

707

Revenue by Geographic Area

Revenue by geographic area based on the country of domicile is as follows:

Years ended December 31,

 

    

2024

    

2023

    

2022

 

amounts in millions

 

United States

$

335

 

350

 

588

United Kingdom

 

3,318

 

3,222

 

2,573

$

3,653

 

3,572

 

3,161

Long-lived Assets by Geographic Area

December 31,

 

    

2024

    

2023

 

amounts in millions

 

United States

$

730

 

757

United Kingdom

 

80

 

81

$

810

 

838