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Quarterly report pursuant to Section 13 or 15(d)

Information jvidÊÓƵ Liberty's Operating Segments

v2.4.0.8
Information jvidÊÓƵ Liberty's Operating Segments
 9 Months Ended
Sep. 30, 2013
Information jvidÊÓƵ Liberty's Operating Segments Ìý
Segment Reporting Disclosure [Text Block]
Information jvidÊÓƵ 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)Ìýthose consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B)Ìýthose 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 SeptemberÌý30, 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
Ìý
Nine months ended September 30,
Ìý
2013
Ìý
2012
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
amounts in millions
SIRIUS XM
$
2,626

Ìý
956

Ìý
—

Ìý
—

ANLBC
251

Ìý
52

Ìý
216

Ìý
31

Corporate and other
100

Ìý
(5
)
Ìý
108

Ìý
(1
)
Ìý
$
2,977

Ìý
1,003

Ìý
324

Ìý
30

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

Ìý
353

Ìý
—

Ìý
—

ANLBC
119

Ìý
31

Ìý
114

Ìý
26

Corporate and other
32

Ìý
(5
)
Ìý
40

Ìý
3

Ìý
$
1,110

Ìý
379

Ìý
154

Ìý
29

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý

Other Information
Ìý
SeptemberÌý30, 2013
Ìý
Total
assets
Ìý
Investments
in affiliates
Ìý
Capital
expenditures
Ìý
amounts in millions
SIRIUS XM
$
28,295

Ìý
274

Ìý
127

ANLBC
563

Ìý
40

Ìý
2

Corporate and other
5,085

Ìý
3,049

Ìý
3

Ìý
$
33,943

Ìý
3,363

Ìý
132



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

Ìý
29

Ìý
1,003

Ìý
30

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

Ìý
22

Ìý
37

Ìý
65

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

Ìý
(12
)
Ìý
1,307

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

Ìý
135

Ìý
222

Ìý
173

Gains (losses) on transactions, net
—

Ìý
21

Ìý
7,481

Ìý
21

Other, net
(67
)
Ìý
49

Ìý
(73
)
Ìý
59

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

Ìý
250

Ìý
8,202

Ìý
1,599