QuickLinks -- Click here to rapidly navigate through this document

Exhibit 99.1

Attributed Financial Information for Tracking Stock Groups
Our Liberty Starz common stock is intended to reflect the separate performance of our Starz Group which primarily includes our wholly-owned subsidiary Starz, LLC. Our Liberty Capital common stock is intended to reflect the separate performance of our Capital Group which is comprised of all of our assets and businesses not attributed to the Starz Group.
The following tables present our assets and liabilities as of September 30, 2011 and our revenue, expenses and cash flows as of and for the three and nine months ended September 30, 2011 and 2010. The tables further present our assets, liabilities, revenue, expenses and cash flows that are attributed to the Starz Group and the Capital Group, respectively. The financial information should be read in conjunction with our unaudited condensed consolidated financial statements for the nine months ended September 30, 2011 included in this Quarterly Report on Form 10-Q.
Notwithstanding the following attribution of assets, liabilities, revenue, expenses and cash flows to the Starz Group and the Capital Group, our tracking stock structure does not affect the ownership or the respective legal title to our assets or responsibility for our liabilities. We and our subsidiaries are each responsible for our respective liabilities. Holders of Liberty Starz common stock and Liberty Capital common stock are holders of our common stock and are subject to risks associated with an investment in our company and all of our businesses, assets and liabilities. The issuance of Liberty Starz common stock and Liberty Capital common stock does not affect the rights of our creditors or creditors of our subsidiaries.

1




SUMMARY ATTRIBUTED FINANCIAL DATA
Starz Group

 
September 30, 2011
 
December 31,
2010
 
amounts in millions
Summary balance sheet data:
 
 
 
Current assets
$
1,871

 
1,746

Total assets
$
2,635

 
2,539

Long-term debt, including current portion
$
41

 
68

Attributed net assets
$
2,397

 
2,246


 
Three months ended September 30,
 
Nine months ended September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
 
 
 
 
 
 
Summary operations data:
 
 
 
 
 
 
 
Revenue
$
389

 
319

 
1,184

 
937

Operating expenses
(226
)
 
(192
)
 
(655
)
 
(529
)
Selling, general and administrative expenses(1)
(62
)
 
(43
)
 
(194
)
 
(127
)
Depreciation and amortization
(4
)
 
(7
)
 
(14
)
 
(16
)
Operating income (loss)
97

 
77

 
321

 
265

Other income (expense), net
(7
)
 
1

 
(9
)
 
1

Income tax (expense) benefit
(30
)
 
(30
)
 
(132
)
 
(100
)
Net earnings (loss)
60

 
48

 
180

 
166

Less net earnings (loss) attributable to noncontrolling interests
(1
)
 
—

 
—

 
—

Net earnings (loss) attributable to Liberty stockholders
$
61

 
48

 
180

 
166

______________________________________
(1)
Includes stock-based compensation of $3 million and $5 million for the three months ended September 30, 2011 and 2010, respectively, and $12 million and $14 million for the nine months ended September 30, 2011 and 2010, respectively.

2




SUMMARY ATTRIBUTED FINANCIAL DATA
Capital Group

 
September 30, 2011
 
December 31,
2010
 
amounts in millions
Summary balance sheet data:
 
 
 
Current assets
$
1,931

 
1,721

Investments in available-for-sale securities and other cost investments
$
2,781

 
4,483

Total assets
$
6,378

 
8,189

Long-term debt, including current portion
$
750

 
2,033

Attributed net assets
$
2,687

 
2,780


 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
Summary operations data:
 
 
 
 
 
 
 
Revenue
$
151

 
251

 
867

 
617

Operating expenses
(97
)
 
(157
)
 
(393
)
 
(458
)
Selling, general and administrative expenses(1)
(29
)
 
(77
)
 
(96
)
 
(258
)
Legal settlement
—

 
—

 
7

 
—

Depreciation and amortization
(11
)
 
(20
)
 
(42
)
 
(57
)
Operating income (loss)
14

 
(3
)
 
343

 
(156
)
Interest expense
(3
)
 
(12
)
 
(10
)
 
(45
)
Share of earnings (losses) of affiliates, net (note 3)
53

 
(59
)
 
3

 
(70
)
Realized and unrealized gains (losses) on financial instruments, net
(252
)
 
70

 
(77
)
 
125

Other income, net
13

 
27

 
62

 
95

Income tax (expense) benefit
72

 
3

 
(124
)
 
14

Net earnings (loss)
(103
)
 
26

 
197

 
(37
)
Less net earnings (loss) attributable to noncontrolling interests
—

 
—

 
(1
)
 
(3
)
Net earnings (loss) attributable to Liberty stockholders
$
(103
)
 
26

 
198

 
(34
)
______________________________________
(1)
Includes stock-based compensation of $0 million and $8 million for the three months ended September 30, 2011 and 2010, respectively, and $12 million and $22 million for the nine months ended September 30, 2011 and 2010, respectively.


3




BALANCE SHEET INFORMATION
September 30, 2011
(unaudited)

 
Attributed (note 1)
 
 
 
 
 
Starz
Group
 
Capital
Group
 
Inter-group
eliminations
 
Consolidated Liberty
 
amounts in millions
Assets
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,059

 
878

 
—

 
1,937

Trade and other receivables, net
252

 
47

 
—

 
299

Program rights
476

 
—

 
—

 
476

Short term marketable securities
—

 
275

 
—

 
275

Restricted cash
33

 
662

 
—

 
695

Receivable from Liberty Interactive
—

 
44

 
—

 
44

Other current assets
51

 
25

 
(35
)
 
41

Total current assets
1,871

 
1,931

 
(35
)
 
3,767

Investments in available-for-sale securities and other cost investments (note 2)
1

 
2,781

 
—

 
2,782

Investments in affiliates, accounted for using the equity method (note 3)
—

 
507

 
—

 
507

Property and equipment, net
98

 
121

 
—

 
219

Intangible assets not subject to amortization
132

 
343

 
—

 
475

Intangible assets subject to amortization, net
16

 
123

 
—

 
139

Program rights
325

 
—

 
—

 
325

Deferred costs
—

 
243

 
—

 
243

Deferred tax assets
—

 
301

 
(63
)
 
238

Other assets, at cost, net of accumulated amortization
192

 
28

 
—

 
220

Total assets
$
2,635

 
6,378

 
(98
)
 
8,915

Liabilities and Equity
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Intergroup Payable (Receivable)
$
(187
)
 
187

 
—

 
—

Accounts payable
7

 
6

 
—

 
13

Accrued liabilities
222

 
50

 
—

 
272

Financial instruments
5

 
1,080

 
—

 
1,085

Current portion of debt (note 4)
4

 
750

 
—

 
754

Current deferred tax liabilities
—

 
777

 
(35
)
 
742

Deferred revenue
44

 
30

 
—

 
74

Other current liabilities
37

 
35

 
—

 
72

Total current liabilities
132

 
2,915

 
(35
)
 
3,012

Long-term debt (note 4)
37

 
—

 
—

 
37

Deferred income tax liabilities
63

 
—

 
(63
)
 
—

Deferred revenue
2

 
529

 
—

 
531

Other liabilities
9

 
248

 
—

 
257

Total liabilities
243

 
3,692

 
(98
)
 
3,837

Equity/Attributed net assets
2,397

 
2,687

 
—

 
5,084

Noncontrolling interests in equity of subsidiaries
(5
)
 
(1
)
 
—

 
(6
)
Total liabilities and equity
$
2,635

 
6,378

 
(98
)
 
8,915



4




STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Three months ended September 30, 2011
(unaudited)

 
Attributed (note 1)
 
 
 
Starz
Group
 
Capital
Group
 
Consolidated Liberty
 
amounts in millions
Revenue:
 
 
 
 
 
Communications and programming services
$
389

 
151

 
540

Operating costs and expenses:
 
 
 
 
 
Operating
226

 
97

 
323

Selling, general and administrative, including stock-based compensation (note 5)
62

 
29

 
91

Depreciation and amortization
4

 
11

 
15

 
292

 
137

 
429

Operating income
97

 
14

 
111

Other income (expense):
 
 
 
 
 
Interest expense
—

 
(3
)
 
(3
)
Share of earnings (losses) of affiliates, net (note 3)
—

 
53

 
53

Realized and unrealized gains (losses) on financial instruments, net
(5
)
 
(252
)
 
(257
)
Gains (losses) on dispositions, net
(1
)
 
2

 
1

Other, net
(1
)
 
11

 
10

 
(7
)
 
(189
)
 
(196
)
Earnings (loss) before income taxes
90

 
(175
)
 
(85
)
Income tax (expense) benefit
(30
)
 
72

 
42

Net earnings (loss)
60

 
(103
)
 
(43
)
Less net earnings (losses) attributable to noncontrolling interests
(1
)
 
—

 
(1
)
Net earnings (loss) attributable to Liberty stockholders
$
61

 
(103
)
 
(42
)
Net earnings (loss)
$
60

 
(103
)
 
(43
)
Other comprehensive earnings (loss), net of taxes:
 
 
 
 
 
Unrealized holding gains (losses) arising during the period
—

 
(1
)
 
(1
)
Recognition of previously unrealized (gains) losses on available-for-sale securities, net
7

 
(9
)
 
(2
)
Other
(3
)
 
2

 
(1
)
Other comprehensive earnings (loss)
4

 
(8
)
 
(4
)
Comprehensive earnings (loss)
64

 
(111
)
 
(47
)
Less comprehensive earnings (loss) attributable to the noncontrolling interests
(1
)
 
—

 
(1
)
Comprehensive earnings (loss) attributable to Liberty stockholders
$
65

 
(111
)
 
(46
)


5




STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) INFORMATION
Three months ended September 30, 2010
(unaudited)

 
Attributed (note 1)
 
 
 
Starz
Group
 
Capital
Group
 
Consolidated Liberty
 
amounts in millions
Revenue:
 
 
 
 
 
Communications and programming services
$
319

 
251

 
570

Operating costs and expenses:
 
 
 
 
 
Operating
192

 
157

 
349

Selling, general and administrative, including stock-based compensation (note 5)
43

 
77

 
120

Depreciation and amortization
7

 
20

 
27

 
242

 
254

 
496

Operating income (loss)
77

 
(3
)
 
74

Other income (expense):
 
 
 
 
 
Interest expense
—

 
(12
)
 
(12
)
Share of earnings (losses) of affiliates, net (note 3)
—

 
(59
)
 
(59
)
Realized and unrealized gains (losses) on financial instruments, net
—

 
70

 
70

Gains (losses) on dispositions, net
(2
)
 
—

 
(2
)
Other, net
3

 
27

 
30

 
1

 
26

 
27

Earnings (loss) before income taxes
78

 
23

 
101

Income tax (expense) benefit
(30
)
 
3

 
(27
)
Net earnings (loss)
48

 
26

 
74

Less net earnings (loss) attributable to the noncontrolling interests
—

 
—

 
—

Net earnings (loss) attributable to Liberty stockholders
$
48

 
26

 
74

Net earnings (loss)
$
48

 
26

 
74

Other comprehensive earnings (loss), net of taxes:
 
 
 
 
 
Unrealized holding gains (losses) arising during the period
—

 
3

 
3

Recognition of previously unrealized gains (losses) on available-for-sale securities, net
—

 
—

 
—

Other comprehensive earnings (loss)
—

 
3

 
3

Comprehensive earnings (loss)
48

 
29

 
77

Less comprehensive earnings (loss) attributable to the noncontrolling interests
—

 
—

 
—

Comprehensive earnings (loss) attributable to Liberty stockholders
$
48

 
29

 
77



6




STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS INFORMATION
Nine months ended September 30, 2011
(unaudited)

 
Attributed (note 1)
 
 
 
Starz Group
 
Capital Group
 
Consolidated Liberty
 
amounts in millions
Revenue:
 
 
 
 
 
Communications and programming services
$
1,184

 
867

 
2,051

Operating costs and expenses:
 
 
 
 
 
Operating
655

 
393

 
1,048

Selling, general and administrative including stock-based compensation (notes 1 and 5)
194

 
96

 
290

Legal Settlement
—

 
(7
)
 
(7
)
Depreciation and amortization
14

 
42

 
56

 
863

 
524

 
1,387

Operating income
321

 
343

 
664

Other income (expense):
 
 
 
 
 
Interest expense
(3
)
 
(10
)
 
(13
)
Share of earnings (losses) of affiliates, net
—

 
3

 
3

Realized and unrealized gains (losses) on financial instruments, net
(4
)
 
(77
)
 
(81
)
Gains (losses) on dispositions, net
(3
)
 
2

 
(1
)
Other, net
1

 
60

 
61

 
(9
)
 
(22
)
 
(31
)
Earnings (loss) before income taxes
312

 
321

 
633

Income tax (expense) benefit
(132
)
 
(124
)
 
(256
)
Net earnings (loss)
180

 
197

 
377

Less net earnings (loss) attributable to the noncontrolling interests
—

 
(1
)
 
(1
)
Net earnings (loss) attributable to Liberty stockholders
$
180

 
198

 
378

Net earnings (loss)
$
180

 
197

 
377

Other comprehensive earnings (loss), net of taxes:
 
 
 
 
 
Unrealized holding gains (loss) arising during the period
—

 
(28
)
 
(28
)
Other
(2
)
 
8

 
6

Other comprehensive earnings (loss)
(2
)
 
(20
)
 
(22
)
Comprehensive earnings (loss)
178

 
177

 
355

Less comprehensive earnings (loss) attributable to the noncontrolling interests
—

 
(1
)
 
(1
)
Comprehensive earnings (loss) attributable to Liberty stockholders
$
178

 
178

 
356



7




STATEMENT OF OPERATIONS AND COMPREHENSIVE EARNINGS INFORMATION
Nine months ended September 30, 2010
(unaudited)

 
Attributed (note 1)
 
 
 
Starz
Group
 
Capital
Group
 
Consolidated Liberty
 
amounts in millions
Revenue:
 
 
 
 
 
Communications and programming services
$
937

 
617

 
1,554

Operating costs and expenses:
 
 
 
 
 
Operating
529

 
458

 
987

Selling, general and administrative including stock-based compensation (notes 1 and 5)
127

 
258

 
385

Depreciation and amortization
16

 
57

 
73

 
672

 
773

 
1,445

Operating income (loss)
265

 
(156
)
 
109

Other income (expense):
 
 
 
 
 
Interest expense
(1
)
 
(45
)
 
(46
)
Interest income from Liberty Interactive
2

 
1

 
3

Share of earnings (losses) of affiliates, net
—

 
(70
)
 
(70
)
Realized and unrealized gains (losses) on financial instruments, net
(1
)
 
125

 
124

Gains (losses) on dispositions, net
(2
)
 
24

 
22

Other, net
3

 
70

 
73

 
1

 
105

 
106

Earnings (loss) before income taxes
266

 
(51
)
 
215

Income tax (expense) benefit
(100
)
 
14

 
(86
)
Net earnings (loss)
166

 
(37
)
 
129

Less net earnings (loss) attributable to the noncontrolling interests
—

 
(3
)
 
(3
)
Net earnings (loss) attributable to Liberty stockholders
$
166

 
(34
)
 
132

Net earnings (loss)
$
166

 
(37
)
 
129

Other comprehensive earnings (loss), net of taxes:
 
 
 
 
 
Unrealized holding gains (loss) arising during the period
—

 
(28
)
 
(28
)
Recognition of previously unrealized gains (losses) on available-for-sale securities, net
—

 
(13
)
 
(13
)
Reattribution of other comprehensive earnings (loss) between tracking stocks
—

 
30

 
30

Other comprehensive earnings (loss)
—

 
(11
)
 
(11
)
Comprehensive earnings (loss)
166

 
(48
)
 
118

Less comprehensive earnings (loss) attributable to the noncontrolling interests
—

 
(3
)
 
(3
)
Comprehensive earnings (loss) attributable to Liberty stockholders
$
166

 
(45
)
 
121



8




STATEMENT OF CASH FLOWS INFORMATION
Nine months ended September 30, 2011
(unaudited)
 
Attributed (note 1)
 
 
 
Starz
Group
 
Capital
Group
 
Consolidated Liberty
 
amounts in millions
Cash flows from operating activities:
 
 
 
 
 
Net earnings (loss)
$
180

 
197

 
377

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
14

 
42

 
56

Amortization of program rights
523

 
—

 
523

Cash payments for program rights
(599
)
 
—

 
(599
)
Stock-based compensation
12

 
12

 
24

Cash payments for stock based compensation
(7
)
 
(3
)
 
(10
)
Noncash interest expense (income)
2

 
(2
)
 
—

Share of (earnings) losses of affiliates, net
—

 
(3
)
 
(3
)
Realized and unrealized (gains) losses on financial instruments, net
4

 
77

 
81

(Gains) losses on disposition of assets, net
3

 
(2
)
 
1

Intergroup tax allocation
89

 
(89
)
 
—

Intergroup tax payments
(31
)
 
31

 
—

Change in tax accounts from Liberty Interactive, net
—

 
53

 
53

Deferred income tax expense
41

 
84

 
125

Other noncash charges (credits), net
76

 
(363
)
 
(287
)
Changes in operating assets and liabilities
 
 
 
 
 
Current and other assets
(159
)
 
(41
)
 
(200
)
Payables and other current liabilities
68

 
107

 
175

Net cash provided (used) by operating activities
216

 
100

 
316

Cash flows from investing activities:
 
 
 
 
 
Cash proceeds from dispositions
—

 
17

 
17

Investments in and loans to cost and equity investees
—

 
(297
)
 
(297
)
Repayment of loan by cost and equity investees
—

 
189

 
189

Capital expended for property and equipment
(4
)
 
(5
)
 
(9
)
Net sales of short term investments
242

 
60

 
302

Net increase in restricted cash
(5
)
 
(134
)
 
(139
)
Reattribution of cash to Liberty Interactive
—

 
(264
)
 
(264
)
Other investing activities, net
(2
)
 
(2
)
 
(4
)
Net cash provided (used) by investing activities
231

 
(436
)
 
(205
)
Cash flows from financing activities:
 
 
 
 
 
Borrowings of debt
1

 
—

 
1

Repayments of debt
(58
)
 
—

 
(58
)
Repurchases of Liberty common stock
—

 
(213
)
 
(213
)
Intergroup borrowings (payments)
(209
)
 
209

 
—

Other financing activities, net
—

 
6

 
6

Net cash provided (used) by financing activities
(266
)
 
2

 
(264
)
Net increase (decrease) in cash and cash equivalents
181

 
(334
)
 
(153
)
Cash and cash equivalents at beginning of period
878

 
1,212

 
2,090

Cash and cash equivalents at end period
$
1,059

 
878

 
1,937


9




STATEMENT OF CASH FLOWS INFORMATION
Nine months ended September 30, 2010
(unaudited)

 
Attributed (note 1)
 
 
 
Starz
Group
 
Capital
Group
 
Consolidated Liberty
 
amounts in millions
Cash flows from operating activities:
 
 
 
 
 
Net earnings
$
166

 
(37
)
 
129

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
16

 
57

 
73

Amortization of program rights
551

 
—

 
551

Cash payments for program rights
(507
)
 
—

 
(507
)
Stock-based compensation
14

 
22

 
36

Cash payments for stock based compensation
(34
)
 
(3
)
 
(37
)
Noncash interest expense
—

 
1

 
1

Share of (earnings) losses of affiliates, net
—

 
70

 
70

Realized and unrealized (gains) losses on financial instruments, net
1

 
(125
)
 
(124
)
(Gains) losses on disposition of assets, net
2

 
(24
)
 
(22
)
Intergroup tax allocation
89

 
(89
)
 
—

Intergroup tax payments
23

 
(23
)
 
—

Change in tax accounts from Liberty Interactive, net
—

 
153

 
153

Deferred income tax expense (benefit)
10

 
39

 
49

Other noncash charges, net
19

 
121

 
140

Changes in operating assets and liabilities
 
 
 
 
 
Current and other assets
(114
)
 
(52
)
 
(166
)
Payables and other current liabilities
(38
)
 
112

 
74

Net cash provided (used) by operating activities
198

 
222

 
420

Cash flows from investing activities:
 
 
 
 
 
Cash proceeds from dispositions
30

 
29

 
59

Proceeds (payments) related to settlement of financial instruments
—

 
750

 
750

Investments in and loans to cost and equity investees
—

 
(288
)
 
(288
)
Repayment of loan by Liberty
158

 
158

 
316

Repayment of loan by equity investee
—

 
101

 
101

Capital expended for property and equipment
(2
)
 
(8
)
 
(10
)
Net purchases of short term investments
(149
)
 
(278
)
 
(427
)
Net (increase) decrease in restricted cash
(20
)
 
(13
)
 
(33
)
Reattribution of cash
36

 
(843
)
 
(807
)
Other investing activities, net
—

 
(7
)
 
(7
)
Net cash provided (used) by investing activities
53

 
(399
)
 
(346
)
Cash flows from financing activities:
 
 
 
 
 
Borrowings of debt
—

 
97

 
97

Repayments of debt
(3
)
 
(1,015
)
 
(1,018
)
Repurchases of Liberty common stock
(40
)
 
(587
)
 
(627
)
Other financing activities, net
13

 
106

 
119

Net cash provided (used) by financing activities
(30
)
 
(1,399
)
 
(1,429
)
Net increase (decrease) in cash and cash equivalents
221

 
(1,576
)
 
(1,355
)
Cash and cash equivalents at beginning of period
794

 
3,157

 
3,951

Cash and cash equivalents at end period
$
1,015

 
1,581

 
2,596


10
Notes to Attributed Financial Information
(unaudited)


(1)
The Starz Group consists primarily of our subsidiary Starz, LLC and approximately $1,059 million of cash, including subsidiary cash. Accordingly, the accompanying attributed financial information for the Starz Group includes these investments and the assets, liabilities, revenue, expenses and cash flows of that consolidated subsidiary.
The Starz Group focuses primarily on video programming. Accordingly, we expect that businesses we may acquire in the future that we believe are complementary to this strategy will also be attributed to the Starz Group.
The Capital Group consists of all of our businesses not attributed to the Starz Group, including our consolidated subsidiaries Atlanta National League Baseball Club, Inc. and TruePosition, Inc. and certain cost and equity investments. Accordingly, the accompanying attributed financial information for the Capital Group includes these investments and the assets, liabilities, revenue, expenses and cash flows of these consolidated subsidiaries. In addition, we have attributed to the Capital Group all of our debt obligations (and related interest expense) that has not been attributed to the Starz Group. See note 4 below for the debt obligations attributed to the Capital Group. In addition, we have allocated certain corporate general and administrative expenses among the Starz Group and the Capital Group as described in note 5 below.
Any businesses that we may acquire in the future that are not attributed to the Starz Group will be attributed to the Capital Group.
On February 25, 2010, Liberty Interactive Corporation ("Liberty Interactive" formerly known as Liberty Media Corporation) announced that its board of directors had resolved to effect the following changes in attribution between its Capital Group and its Interactive Group, effective immediately (the "February Reattribution"):
•
the change in attribution from the Liberty Interactive Group to the Liberty Capital Group of Liberty's 14.6% ownership interest in Live Nation Entertainment, Inc.;
•
the change in attribution from the Liberty Capital Group to the Liberty Interactive Group of the following debt securities:
◦
$469 million in principal amount of 4% Exchangeable Senior Debentures due 2029 (the "2029 Exchangeables");
◦
$460 million in principal amount of 3.75% Exchangeable Senior Debentures due 2030 (the "2030 Exchangeables"); and
◦
$492 million in principal amount of 3.5% Exchangeable Senior Debentures due 2031 (the "2031 Exchangeables", and together with the 2029 Exchangeables and the 2030 Exchangeables, the "Exchangeable Notes");
•
the change in attribution from the Liberty Capital Group to the Liberty Interactive Group of approximately $830 million in net taxable income to be recognized ratably in tax years 2014 through 2018 as a result of the cancellation in April 2009 of $400 million in principal amount of 2029 Exchangeables and $350 million in principal amount of 2030 Exchangeables; and
•
the change in attribution from the Liberty Capital Group to the Liberty Interactive Group of $807 million in cash.

The February Reattribution has been reflected prospectively. This change in attribution had no effect on the balance sheet and results of operations attributed to the Starz Group.
On September 16, 2010, Liberty Interactive's board of directors approved a change in attribution of Liberty Interactive's interest in Starz Media, LLC along with $15 million in cash from the Liberty Capital Group to the Liberty Starz Group, effective September 30, 2010 (the "Starz Media Reattribution"). As a result of the Starz Media Reattribution, an intergroup payable of approximately $54.9 million owed by the Liberty Capital Group to the Liberty Starz Group has been extinguished, and its Starz Group has become attributed with approximately $53.7 million in bank debt, interest rate swaps and any shutdown costs associated with the winding down of the Overture Films business. Notwithstanding the Starz Media Reattribution, the board determined that certain tax benefits relating to the operation of the Starz Media, LLC business by the Liberty Capital Group that may be realized from any future sale or other disposition of that business by the Liberty Starz Group will be attributed to the Liberty Capital Group.


11
Notes to Attributed Financial Information
(unaudited)

The Starz Media Reattribution has been reflected prospectively.
On February 9, 2011, Liberty Interactive's Board of Directors approved the change in attribution of (i) approximately $1.138 billion principal amount of Liberty Media LLC's 3.125% Exchangeable Senior Debentures due 2023 (the "TWX Exchangeable Notes"), (ii) 21,785,130 shares of Time Warner Inc. common stock, 5,468,254 shares of Time Warner Cable Inc. common stock and 1,980,425 shares of AOL, Inc. common stock, which collectively represent the basket of securities into which the TWX Exchangeable Notes are exchangeable (the "Basket Securities") and (iii) $263.8 million in cash from the Liberty Capital Group to the Liberty Interactive Group, effective immediately (the "TWX Reattribution"). The TWX Reattribution had no effect on the assets and liabilities attributed to the Liberty Starz Group, nor did it effect any change to the obligor of the TWX Exchangeable Notes, which remains Liberty Interactive LLC.
During the third quarter of 2011, the Starz group made an intergroup loan to the Capital group in the amount of $209 million to fund various investments (primarily the Barnes & Noble investment). This intergroup loan accrues interest quarterly at a fixed rate of 0.50% and is due February 19, 2012.
While we believe the allocation methodology described above is reasonable and fair to each group, we may elect to change the allocation methodology in the future. In the event we elect to transfer assets or businesses from one group to the other, such transfer would be made on a fair value basis and would be accounted for as a short-term loan unless our board of directors determines to account for it as a long-term loan or through an inter-group interest.
(2)
Investments in available-for-sale securities, including non-strategic securities, and other cost investments are summarized as follows:
 
September 30, 2011
 
December 31, 2010
 
amounts in millions
Capital Group
 
 
 
  Time Warner Inc.(1)(2)
$
373

 
1,101

  Time Warner Cable Inc.(1)(2)
196

 
567

  Sprint Nextel Corporation ("Sprint")(1)
140

 
301

  Motorola Solutions(1)(3)
311

 
471

  Motorola Mobility(1)(3)
245

 
—

  Viacom, Inc. 
294

 
301

  Live Nation(4)
24

 
389

  Century Link, Inc.(1)
122

 
248

  Barnes & Noble, Inc. (5)
206

 
—

  Priceline(1)
234

 
208

  Other AFS equity securities(1)(2)
35

 
100

  SIRIUS XM debt securities
377

 
384

  Other AFS debt securities
216

 
404

  Other cost investments and related receivables
8

 
9

    Total attributed to the Capital Group
2,781

 
4,483

Starz Group
 
 
 
  Other
1

 
67

    Total attributed to the Starz Group
1

 
67

Consolidated Liberty
$
2,782

 
4,550

_______________________________________
(1)
Includes shares pledged as collateral for share borrowing arrangements. See note 8 in the accompanying condensed consolidated financial statements.

(2)
As discussed in note 2, certain of these securities were reattributed from the Capital Group to the Interactive Group in the first quarter of 2011.
(3)
Effective January 4, 2011 Motorola, Inc. separated Motorola Mobility Holdings, Inc. in a 1 for 8 stock distribution. Motorola Inc. simultaneously completed a 1 for 7 reverse stock split and was renamed

12
Notes to Attributed Financial Information
(unaudited)

Motorola Solutions, Inc.
(4)
In June 2011 the Company acquired an additional 5.5 million shares of Live Nation for $58 million. The additional ownership requires the Company to account for the investment as an equity method affiliate. For additional discussion see footnote 7. Liberty continues to hold debt securities in Live Nation which are included in available-for-sale securities.
(5)
In August 2011, Liberty acquired 204,000 shares of preferred stock of Barnes & Noble, Inc. which is convertible into an approximate 17% common equity interest for $204 million. The preferred stock accrues dividends at a rate of 7.75% per annum. Liberty has elected to account for its investment in Barnes & Noble at fair value. Accordingly, changes in fair value of Barnes & Noble, Inc. preferred stock are reported in realized and unrealized gains (losses) on financial instruments in the accompanying condensed consolidated statements of operations.
(3)
The following table presents information regarding certain equity method investments:

 
 
 
 
 
 
 
Share of earnings (losses)
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
September 30, 2011
 
 
Percentage
ownership
 
Carrying
value
 
Market
value
 
 
2011
 
2010
 
2011
 
2010
 
dollar amounts in millions
 
 
 
 
Capital Group
 
 
 
 
 
 
 
 
 
 
 
 
 
    Sirius(a)
40
%
 
$
3,906

 
$
32

 
$
42

 
$
(51
)
 
34

 
(51
)
    Live Nation(b)
21
%
 
$
314

 
$
376

 
$
1

 
$
—

 
(44
)
 
—

_______________________________________
(a)
As of September 30, 2011, the Sirius Preferred Stock had a market value of $3,906 million based on the value of the common stock into which it is convertible.
(b)
During June 2011, Liberty acquired an additional 5.5 million shares of Live Nation which increased our ownership percentage above 20% of the outstanding voting shares. Due to the presumption that an entity with an ownership percentage greater then 20% has significant influence and no other factors would rebut that presumption, the Company is accounting for the investment as an equity method affiliate. The Company has elected to record its share of earnings (loss) for Live Nation on a three-month lag due to timeliness considerations. Increases in ownership which result in a change to the equity method of accounting generally require retroactive recognition of an investment's share of earnings (loss) in prior periods. Due to the relative insignificance of our share of losses for Live Nation in previous periods, both quantitatively and qualitatively, the Company has recorded such amounts in the current year. Approximately $12 million of the losses recorded for the nine months ended September 30, 2011 relate to the prior year.
(4)
Debt attributed to the Starz Group and the Capital Group is comprised of the following:
 
September 30, 2011
 
Outstanding
principal
 
Carrying
value
 
amounts in millions
Capital Group
 
 
 
    Liberty bank facility
$
750

 
750

        Total attributed Capital Group debt
750

 
750

Starz Group
 
 
 
    Subsidiary debt
41

 
41

        Total attributed Starz Group debt
41

 
41

            Total debt
$
791

 
791


13
Notes to Attributed Financial Information
(unaudited)



(5)
Cash and stock-based compensation expense for our corporate employees has been allocated among the Starz Group and the Capital Group based on the estimated percentage of time spent providing services for each group. Historically these items had been allocated to the Liberty Interactive Group based on the same methodology and, pursuant to the Services Agreement entered into between Liberty and Liberty Interactive in connection with the Split-Off, will continue to be allocated on a similar basis.
Other general and administrative expenses are charged directly to the groups whenever possible and are otherwise allocated based on estimated usage or some other reasonably determined methodology. Amounts allocated from the Capital Group to Liberty Interactive and the Starz Group, including stock-based compensation, are as follows:
 
Nine months ended September 30,
 
2011
 
2010
 
amounts in millions
Liberty Interactive Corporation
$
40

 
37

Starz Group
$
14

 
14

While we believe that this allocation method is reasonable and fair to each group, we may elect to change the allocation methodology or percentages used to allocate general and administrative expenses in the future.
(6)
We have accounted for income taxes for the Starz Group and the Capital Group in the accompanying attributed financial information in a manner similar to a stand-alone company basis. To the extent this methodology differs from our tax sharing policy, differences have been reflected in the attributed net assets of the groups.
(7)
The Liberty Starz common stock and the Liberty Capital common stock have voting and conversion rights under our charter. Following is a summary of those rights. Holders of Series A common stock of each group are entitled to one vote per share and holders of Series B common stock of each group are entitled to ten votes per share. Holders of Series C common stock of each group, if issued, will be entitled to 1/100th of a vote per share in certain limited cases and will otherwise not be entitled to vote. In general, holders of Series A and Series B common stock vote as a single class. In certain limited circumstances, the board may elect to seek the approval of only the holders of common stock related to our Starz Group or our Capital Group.
At the option of the holder, each share of Series B common stock will be convertible into one share of Series A common stock of the same group. At the discretion of our board, the common stock related to one group may be converted into common stock of the same series that is related to our other group.

14




QuickLinks