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Liberty Media Corp. – ‘10-K’ for 12/31/20 – ‘EX-99.1’

On: Friday, 2/26/21, at 1:31pm ET · For: 12/31/20 · Accession #: 1558370-21-1967 · File #: 1-35707

Previous ‘10-K’: ‘10-K’ on 2/26/20 for 12/31/19 · Next: ‘10-K’ on 2/25/22 for 12/31/21 · Latest: ‘10-K’ on 2/28/24 for 12/31/23 · 38 References:

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/26/21  Liberty Media Corp.               10-K       12/31/20  123:30M                                    Toppan Merrill Bridge/FA

Annual Report — Form 10-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML   3.33M 
 2: EX-4.12     Instrument Defining the Rights of Security Holders  HTML    110K 
 3: EX-10.57    Material Contract                                   HTML     89K 
 4: EX-10.58    Material Contract                                   HTML     71K 
 5: EX-10.59    Material Contract                                   HTML     71K 
 6: EX-21       Subsidiaries List                                   HTML     48K 
 7: EX-23.1     Consent of Expert or Counsel                        HTML     40K 
11: EX-99.1     Miscellaneous Exhibit                               HTML    966K 
 8: EX-31.1     Certification -- §302 - SOA'02                      HTML     41K 
 9: EX-31.2     Certification -- §302 - SOA'02                      HTML     40K 
10: EX-32       Certification -- §906 - SOA'02                      HTML     37K 
18: R1          Document And Entity Information                     HTML    121K 
19: R2          Consolidated Balance Sheets                         HTML    181K 
20: R3          Consolidated Balance Sheets (Parenthetical)         HTML     71K 
21: R4          Consolidated Statements of Operations               HTML    175K 
22: R5          Consolidated Statements of Comprehensive Earnings   HTML     75K 
                (Loss)                                                           
23: R6          Consolidated Statements of Cash Flows               HTML    127K 
24: R7          Consolidated Statements of Equity                   HTML    112K 
25: R8          Basis of Presentation                               HTML     44K 
26: R9          Tracking Stocks                                     HTML     55K 
27: R10         Summary of Significant Accounting Policies          HTML    258K 
28: R11         Supplemental Disclosures to Consolidated            HTML     78K 
                Statements of Cash Flows                                         
29: R12         Acquisitions and Restructurings                     HTML     87K 
30: R13         Assets And Liabilities Measured At Fair Value       HTML     97K 
31: R14         Investments In Affiliates Accounted For Using The   HTML    138K 
                Equity Method                                                    
32: R15         Goodwill and Intangible Assets                      HTML    103K 
33: R16         Debt                                                HTML    251K 
34: R17         Leases                                              HTML    127K 
35: R18         Income Taxes                                        HTML    174K 
36: R19         Stockholders' Equity                                HTML     42K 
37: R20         Related Party Transactions with Officers and        HTML     44K 
                Directors                                                        
38: R21         Stock-Based Compensation                            HTML    208K 
39: R22         Employee Benefit Plans                              HTML     37K 
40: R23         Other Comprehensive Earnings (Loss)                 HTML    115K 
41: R24         Commitments and Contingencies                       HTML     53K 
42: R25         Information About Liberty's Operating Segments      HTML    270K 
43: R26         Summary of Significant Accounting Policies          HTML    305K 
                (Policies)                                                       
44: R27         Summary of Significant Accounting Policies          HTML    210K 
                (Tables)                                                         
45: R28         Supplemental Disclosures to Consolidated            HTML     79K 
                Statements of Cash Flows (Tables)                                
46: R29         Acquisitions and Restructurings (Tables)            HTML     85K 
47: R30         Assets And Liabilities Measured At Fair Value       HTML     95K 
                (Tables)                                                         
48: R31         Investments In Affiliates Accounted For Using The   HTML    134K 
                Equity Method (Tables)                                           
49: R32         Goodwill and Intangible Assets (Tables)             HTML    105K 
50: R33         Debt (Tables)                                       HTML    210K 
51: R34         Leases (Tables)                                     HTML    149K 
52: R35         Income Taxes (Tables)                               HTML    173K 
53: R36         Stock-Based Compensation (Tables)                   HTML    206K 
54: R37         Other Comprehensive Earnings (Loss) (Tables)        HTML    115K 
55: R38         Information About Liberty's Operating Segments      HTML    266K 
                (Tables)                                                         
56: R39         Financial Information for Tracking Stock Groups     HTML   1.13M 
                (Tables)                                                         
57: R40         Basis of Presentation (Details)                     HTML     44K 
58: R41         Basis of Presentation - Liberty Media Acquisition   HTML     80K 
                Corporation (Details)                                            
59: R42         Tracking Stocks - Reattribution (Details)           HTML     97K 
60: R43         Tracking Stocks - Additional Information (Details)  HTML    179K 
61: R44         Summary of Significant Accounting Policies          HTML     70K 
                (Details)                                                        
62: R45         Summary of Significant Accounting Policies -        HTML     60K 
                Revenue recognition - Deferred revenue (Details)                 
63: R46         Summary of Significant Accounting Policies -        HTML     47K 
                Revenue recognition - Performance obligations                    
                (Details)                                                        
64: R47         Summary of Significant Accounting Policies -        HTML     56K 
                Revenue recognition - Disaggregation of revenue -                
                SIRIUS XM (Details)                                              
65: R48         Summary of Significant Accounting Policies -        HTML     46K 
                Revenue recognition - Disaggregation of revenue -                
                Formula 1 (Details)                                              
66: R49         Summary of Significant Accounting Policies -        HTML     46K 
                Revenue recognition - Disaggregation of revenue -                
                Braves Holdings (Details)                                        
67: R50         Summary of Significant Accounting Policies -        HTML     67K 
                Stock-Based Compensation (Details)                               
68: R51         Summary of Significant Accounting Policies - EPS    HTML     79K 
                (Details)                                                        
69: R52         Supplemental Disclosures to Consolidated            HTML     52K 
                Statements of Cash Flows (Details)                               
70: R53         Supplemental Disclosures to Consolidated            HTML     46K 
                Statements of Cash Flows - Cash flow changes,                    
                reconciliation of components of cash (Details)                   
71: R54         Acquisitions and Restructurings - Stitcher          HTML     58K 
                (Details)                                                        
72: R55         Acquisition and Restructurings - Simplecast         HTML     53K 
                (Details)                                                        
73: R56         Acquisitions and Restructurings - Automatic Labs    HTML     40K 
                (Details)                                                        
74: R57         Acquisitions and Restructurings - Pandora           HTML     55K 
                (Details)                                                        
75: R58         Acquisitions and Restructurings - Pandora           HTML    105K 
                Acquisition Price Allocation (Details)                           
76: R59         Assets And Liabilities Measured At Fair Value       HTML     51K 
                (Details)                                                        
77: R60         Assets And Liabilities Measured At Fair Value -     HTML     54K 
                Realized and Unrealized Gains (Losses) on                        
                Financial Instruments (Details)                                  
78: R61         Investments In Affiliates Accounted For Using The   HTML     57K 
                Equity Method (Details)                                          
79: R62         Investments In Affiliates Accounted For Using The   HTML     54K 
                Equity Method - Share Of Earnings (Losses) Of                    
                Affiliates (Details)                                             
80: R63         Investments In Affiliates Accounted For Using The   HTML     81K 
                Equity Method - Sirius XM Canada (Details)                       
81: R64         Investments In Affiliates Accounted For Using The   HTML     51K 
                Equity Method - SoundCloud (Details)                             
82: R65         Goodwill and Intangible Assets - Goodwill           HTML     50K 
                Rollforward (Details)                                            
83: R66         Goodwill and Intangible Assets - Intangible Assets  HTML     41K 
                Not Subject to Amortization (Details)                            
84: R67         Goodwill and Intangible Assets - Intangible Assets  HTML     57K 
                Subject to Amortization (Details)                                
85: R68         Goodwill and Intangible Assets - Amortization       HTML     48K 
                (Details)                                                        
86: R69         Goodwill and Intangible Assets - Impairments        HTML     44K 
                (Details)                                                        
87: R70         Debt (Details)                                      HTML    231K 
88: R71         Debt - Narrative (Details)                          HTML    507K 
89: R72         Debt - Braves Holdings Notes (Details)              HTML     62K 
90: R73         Debt - Formula 1 (Details)                          HTML    103K 
91: R74         Debt - Fair Value of Debt (Details)                 HTML     64K 
92: R75         Debt - Five Year Maturities (Details)               HTML     45K 
93: R76         Leases - Effect of adoption (Details)               HTML     61K 
94: R77         Leases - Components of lease expense (Details)      HTML     48K 
95: R78         Leases - Weighted average lease term and discount   HTML     42K 
                rate (Details)                                                   
96: R79         Leases - Supplemental balance sheet information     HTML     70K 
                related to leases (Details)                                      
97: R80         Leases - Supplemental cash flow information         HTML     39K 
                related to leases (Details)                                      
98: R81         Leases - Finance leases and Operating leases        HTML     73K 
                (Details)                                                        
99: R82         Income Taxes (Details)                              HTML     69K 
100: R83         Income Taxes - Effective Income Tax Rate, Tax Rate  HTML     68K  
                Reconciliation (Details)                                         
101: R84         Income Taxes - Tax Effects And Reconciliation Of    HTML    117K  
                Unrecognized Tax Benefits (Details)                              
102: R85         Stockholders' Equity (Details)                      HTML     74K  
103: R86         Related Party Transactions with Officers and        HTML     64K  
                Directors (Details)                                              
104: R87         Related Party Transactions with Officers and        HTML     47K  
                Directors - Chairman's Employment Agreement                      
                (Details)                                                        
105: R88         Stock-Based Compensation - Grants of stock options  HTML    120K  
                (Details)                                                        
106: R89         Stock-Based Compensation - Liberty - Outstanding    HTML    117K  
                Awards (Details)                                                 
107: R90         Stock-Based Compensation - SIRIUS XM Holdings       HTML     86K  
                (Details)                                                        
108: R91         Employee Benefit Plans (Details)                    HTML     35K  
109: R92         Other Comprehensive Earnings (Loss) (Details)       HTML     62K  
110: R93         Other Comprehensive Earnings (Loss) - Tax Effects   HTML     53K  
                of Components of OCI (Details)                                   
111: R94         Commitments and Contingencies (Details)             HTML    111K  
112: R95         Information About Liberty's Operating Segments      HTML     48K  
                (Details)                                                        
113: R96         Information About Liberty's Operating Segments -    HTML     72K  
                Revenue and Adjusted OIBDA (Details)                             
114: R97         Information About Liberty's Operating Segments -    HTML     82K  
                Other Information (Details)                                      
115: R98         Information About Liberty's Operating Segments -    HTML     64K  
                Reconciliation Of Segment Adjusted OIBDA (Details)               
116: R99         Information About Liberty's Operating Segments -    HTML     48K  
                Revenue and Long-Lived Assets by Geographic Area                 
                (Details)                                                        
117: R100        Financial Information for Tracking Stock Groups -   HTML    164K  
                Balance Sheet (Details)                                          
118: R101        Financial Information for Tracking Stock Groups -   HTML    161K  
                Statement of Operations (Details)                                
119: R102        Financial Information for Tracking Stock Groups -   HTML    185K  
                Cash Flows (Details)                                             
121: XML         IDEA XML File -- Filing Summary                      XML    227K  
17: XML         XBRL Instance -- lmca-20201231x10k_htm               XML   8.40M 
120: EXCEL       IDEA Workbook of Financial Reports                  XLSX    214K  
13: EX-101.CAL  XBRL Calculations -- lmca-20201231_cal               XML    377K 
14: EX-101.DEF  XBRL Definitions -- lmca-20201231_def                XML   2.79M 
15: EX-101.LAB  XBRL Labels -- lmca-20201231_lab                     XML   3.49M 
16: EX-101.PRE  XBRL Presentations -- lmca-20201231_pre              XML   3.23M 
12: EX-101.SCH  XBRL Schema -- lmca-20201231                         XSD    482K 
122: JSON        XBRL Instance as JSON Data -- MetaLinks              807±  1.29M  
123: ZIP         XBRL Zipped Folder -- 0001558370-21-001967-xbrl      Zip    898K

‘EX-99.1’ — Miscellaneous Exhibit

This Exhibit is an HTML Document rendered as filed. [ Alternative Formats ]

iX: C: C: C: C: C:

Exhibit 99.1

Unaudited Attributed Financial Information for Tracking Stock Groups

The following tables present Liberty Media Corporation’s (“Liberty”) assets and liabilities as of December 31, 2020 and December 31, 2019 and revenue, expenses and cash flows for the years ended December 31, 2020, 2019, and 2018. The tables further present our assets, liabilities, revenue, expenses and cash flows that are attributed to the Liberty SiriusXM Group, Braves Group and the Formula One Group, respectively. The financial information should be read in conjunction with our consolidated financial statements for the year ended December 31, 2020 included in this Annual Report on Form 10-K.

Notwithstanding the following attribution of assets, liabilities, revenue, expenses and cash flows to the Liberty SiriusXM Group, Braves Group and the Formula One Group, our tracking stock capital 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 SiriusXM common stock, Liberty Braves common stock and Liberty Formula One 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 SiriusXM common stock, Liberty Braves common stock and Liberty Formula One common stock does not affect the rights of our creditors.

SUMMARY ATTRIBUTED FINANCIAL DATA

Liberty SiriusXM Group

Summary Balance Sheet Data:


	December 31,		December 31,
	2020		2019

	amounts in millions
Cash and cash equivalents	$	996		493
Investments in affiliates, accounted for using the equity method	$	886		644
Intangible assets not subject to amortization	$	24,924		25,665
Intangible assets subject to amortization, net	$	1,471		1,603
Total assets	$	32,081		31,421
Deferred revenue	$	1,721		1,930
Long-term debt, including current portion	$	13,000		9,245
Deferred tax liabilities	$	2,116		1,890
Attributed net assets	$	8,250		10,678
Noncontrolling interest	$	4,505		5,628

Summary Statement of Operations Data:


		Years ended December 31,
	2020		2019	2018

		amounts in millions
Revenue	$	8,040	7,794	5,771
Cost of subscriber services (1)	$	(3,579)	(3,427)	(2,308)
Subscriber acquisition costs	$	(362)	(427)	(470)
Other operating expenses (1)	$	(264)	(280)	(123)
Selling, general and administrative expense (1)	$	(1,509)	(1,495)	(878)
Impairment of intangible assets	$	(976)	—	—
Operating income (loss)	$	749	1,544	1,620
Interest expense	$	(462)	(435)	(388)
Share of earnings (losses) of affiliates, net	$	(484)	(24)	(11)
Income tax (expense) benefit	$	(106)	(271)	(241)
Net earnings (loss) attributable to noncontrolling interests	$	28	241	328
Earnings (loss) attributable to Liberty stockholders	$	(747)	494	676

(1)	Includes stock-based compensation expense as follows:


		Years ended December 31,
	2020		2019	2018

		amounts in millions
Cost of subscriber services	$	44	43	37
Other operating expenses		43	49	17
Selling, general and administrative expense		147	154	102
	$	234	246	156

Braves Group

Summary Balance Sheet Data:


	December 31,		December 31,
	2020		2019

	amounts in millions
Cash and cash equivalents	$	151		142
Property and equipment, net	$	799		795
Investments in affiliates, accounted for using the equity method	$	94		99
Intangible assets not subject to amortization	$	323		323
Intangible assets subject to amortization, net	$	24		34
Total assets	$	1,571		1,593
Deferred revenue	$	90		70
Long-term debt, including current portion	$	670		554
Deferred tax liabilities	$	52		61
Attributed net assets	$	291		378

Summary Statement of Operations Data:


		Years ended December 31,
	2020		2019	2018

		amounts in millions
Revenue	$	178	476	442
Selling, general and administrative expense (1)	$	(67)	(100)	(97)
Operating income (loss)	$	(128)	(39)	1
Share of earnings (losses) of affiliates, net	$	6	18	12
Income tax (expense) benefit	$	38	15	15
Earnings (loss) attributable to Liberty stockholders	$	(78)	(77)	5

(1)	Includes stock-based compensation of $6 million, $17 million, and $11 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Formula One Group

Summary Balance Sheet Data:


	December 31,		December 31,
	2020		2019

	amounts in millions
Cash and cash equivalents	$	1,684		587
Investments in affiliates, accounted for using the equity method	$	38		882
Intangible assets not subject to amortization	$	3,956		3,956
Intangible assets subject to amortization, net	$	3,883		4,303
Total assets	$	11,191		11,505
Long-term debt, including current portion	$	3,759		5,677
Attributed net assets	$	6,550		5,239

Summary Statement of Operations Data:


		Years ended December 31,
	2020		2019	2018

		amounts in millions
Revenue	$	1,145	2,022	1,827
Cost of Formula 1 revenue	$	(974)	(1,394)	(1,273)
Selling, general and administrative expense (1)	$	(174)	(210)	(204)
Operating income (loss)	$	(444)	(35)	(110)
Interest expense	$	(146)	(195)	(192)
Share of earnings (losses) of affiliates, net	$	(108)	12	17
Realized and unrealized gains (losses) on financial instruments, net	$	129	(270)	43
Income tax (expense) benefit	$	112	90	50
Earnings (loss) attributable to Liberty stockholders	$	(596)	(311)	(150)

(1)	Includes stock-based compensation of $21 million, $28 million, and $25 million for the years ended December 31, 2020, 2019, and 2018, respectively.

BALANCE SHEET INFORMATION

December 31, 2020

(unaudited)

Attributed (note 1)

Liberty

SiriusXM

Braves

Formula One

Inter-Group

Consolidated

Group

Eliminations

Liberty

amounts in millions

Assets

Current assets:

Cash and cash equivalents

i 996

i 151

i 1,684

—

i 2,831

Trade and other receivables, net

i 672

i 30

i 121

—

i 823

Other current assets

i 225

i 63

i 459

( i 371)

i 376

Total current assets

i 1,893

i 244

i 2,264

( i 371)

i 4,030

Intergroup interests (note 1)

257

—

169

(426)

—

Investments in affiliates, accounted for using the equity method (note 1)

i 886

i 94

i 38

—

i 1,018

Property and equipment, at cost

i 2,842

i 977

i 198

—

i 4,017

Accumulated depreciation

( i 1,526)

( i 178)

( i 74)

—

( i 1,778)

i 1,316

i 799

i 124

—

i 2,239

Intangible assets not subject to amortization

Goodwill

i 15,082

i 180

i 3,956

—

i 19,218

FCC licenses

i 8,600

—

i 8,600

Other

i 1,242

i 143

—

i 1,385

i 24,924

i 323

i 3,956

—

i 29,203

Intangible assets subject to amortization, net

i 1,471

i 24

i 3,883

—

i 5,378

Other assets

i 1,334

i 87

i 757

( i 42)

i 2,136

Total assets

i 32,081

i 1,571

i 11,191

( i 839)

i 44,004

Liabilities and Equity

Current liabilities:

Intergroup payable (receivable) (note 4)

( i 22)

( i 35)

i 57

—

Accounts payable and accrued liabilities

i 1,380

i 53

i 150

—

i 1,583

Current portion of debt (note 1)

i 475

i 59

i 209

—

i 743

Deferred revenue

i 1,721

i 90

i 259

—

i 2,070

Other current liabilities

i 442

i 6

i 17

( i 371)

i 94

Total current liabilities

i 3,996

i 173

i 692

( i 371)

i 4,490

Long-term debt (note 1)

i 12,525

i 611

i 3,550

—

i 16,686

Deferred income tax liabilities (note 3)

i 2,116

i 52

—

( i 42)

i 2,126

Redeemable intergroup interests (note 1)

—

i 226

i 200

( i 426)

—

Other liabilities

i 689

i 218

i 194

—

i 1,101

Total liabilities

i 19,326

i 1,280

i 4,636

( i 839)

i 24,403

Equity / Attributed net assets

i 8,250

i 291

i 6,550

—

i 15,091

Noncontrolling interests in equity of subsidiaries

i 4,505

—

i 5

—

i 4,510

Total liabilities and equity

i 32,081

i 1,571

i 11,191

( i 839)

i 44,004

BALANCE SHEET INFORMATION

December 31, 2019

(unaudited)

Attributed (note 1)

Liberty

SiriusXM

Braves

Formula One

Inter-Group

Consolidated

Group

Eliminations

Liberty

amounts in millions

Assets

Current assets:

Cash and cash equivalents

i 493

i 142

i 587

—

i 1,222

Trade and other receivables, net

i 670

i 28

i 69

—

i 767

Other current assets

i 227

i 97

i 92

—

i 416

Total current assets

i 1,390

i 267

i 748

—

i 2,405

Intergroup interests (note 1)

—

292

(292)

—

Investments in affiliates, accounted for using the equity method (note 1)

i 644

i 99

i 882

—

i 1,625

Property and equipment, at cost

i 2,686

i 923

i 171

—

i 3,780

Accumulated depreciation

( i 1,331)

( i 128)

( i 59)

—

( i 1,518)

i 1,355

i 795

i 112

—

i 2,262

Intangible assets not subject to amortization

Goodwill

i 15,803

i 180

i 3,956

—

i 19,939

FCC licenses

i 8,600

—

i 8,600

Other

i 1,262

i 143

—

i 1,405

i 25,665

i 323

i 3,956

—

i 29,944

Intangible assets subject to amortization, net

i 1,603

i 34

i 4,303

—

i 5,940

Other assets

i 764

i 75

i 1,212

( i 38)

i 2,013

Total assets

i 31,421

i 1,593

i 11,505

( i 330)

i 44,189

Liabilities and Equity

Current liabilities:

Intergroup payable (receivable) (note 4)

( i 23)

( i 9)

i 32

—

Accounts payable and accrued liabilities

i 1,294

i 63

i 264

—

i 1,621

Current portion of debt (note 1)

i 1

i 59

—

i 60

Deferred revenue

i 1,930

i 70

i 113

—

i 2,113

Other current liabilities

i 72

i 5

i 17

—

i 94

Total current liabilities

i 3,274

i 188

i 426

—

i 3,888

Long-term debt (note 1)

i 9,244

i 495

i 5,677

—

i 15,416

Deferred income tax liabilities (note 3)

i 1,890

i 61

—

( i 38)

i 1,913

Redeemable intergroup interests (note 1)

i 24

i 268

—

( i 292)

—

Other liabilities

i 683

i 203

i 161

—

i 1,047

Total liabilities

i 15,115

i 1,215

i 6,264

( i 330)

i 22,264

Equity / Attributed net assets

i 10,678

i 378

i 5,239

—

i 16,295

Noncontrolling interests in equity of subsidiaries

i 5,628

—

i 2

—

i 5,630

Total liabilities and equity

i 31,421

i 1,593

i 11,505

( i 330)

i 44,189

STATEMENT OF OPERATIONS INFORMATION

December 31, 2020

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	i 8,040	—	—	i 8,040
Formula 1 revenue		—	—	i 1,145	i 1,145
Other revenue		—	i 178	—	i 178
Total revenue		i 8,040	i 178	i 1,145	i 9,363
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		i 2,421	—	—	i 2,421
Programming and content		i 481	—	—	i 481
Customer service and billing		i 481	—	—	i 481
Other		i 196	—	—	i 196
Cost of Formula 1 revenue		—	—	i 974	i 974
Subscriber acquisition costs		i 362	—	—	i 362
Other operating expenses		i 264	i 170	—	i 434
Selling, general and administrative		i 1,509	i 67	i 174	i 1,750
Impairment of intangible assets		i 976	—	—	i 976
Acquisition and restructuring		28	—	—	28
Depreciation and amortization		i 573	i 69	i 441	i 1,083
		i 7,291	i 306	i 1,589	i 9,186
Operating income (loss)		i 749	( i 128)	( i 444)	i 177
Other income (expense):
Interest expense		( i 462)	( i 26)	( i 146)	( i 634)
Intergroup interest income (expense)		( i 7)	—	i 7	—
Share of earnings (losses) of affiliates, net		( i 484)	i 6	( i 108)	( i 586)
Unrealized gain/(loss) on inter-group interests		i 125	i 42	( i 167)	—
Realized and unrealized gains (losses) on financial instruments, net		( i 521)	( i 10)	i 129	( i 402)
Other, net		( i 13)	—	i 23	i 10
		( i 1,362)	i 12	( i 262)	( i 1,612)
Earnings (loss) before income taxes		( i 613)	( i 116)	( i 706)	( i 1,435)
Income tax (expense) benefit (note 3)		( i 106)	i 38	i 112	i 44
Net earnings (loss)		( i 719)	( i 78)	( i 594)	( i 1,391)
Less net earnings (loss) attributable to the noncontrolling interests		i 28	—	i 2	i 30
Net earnings (loss) attributable to Liberty stockholders	$	( i 747)	( i 78)	( i 596)	( i 1,421)

STATEMENT OF OPERATIONS INFORMATION

December 31, 2019

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	i 7,794	—	—	i 7,794
Formula 1 revenue		—	—	i 2,022	i 2,022
Other revenue		—	i 476	—	i 476
Total revenue		i 7,794	i 476	i 2,022	i 10,292
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		i 2,291	—	—	i 2,291
Programming and content		i 462	—	—	i 462
Customer service and billing		i 475	—	—	i 475
Other		i 199	—	—	i 199
Cost of Formula 1 revenue		—	—	i 1,394	i 1,394
Subscriber acquisition costs		i 427	—	—	i 427
Other operating expenses		i 280	i 344	—	i 624
Selling, general and administrative		i 1,495	i 100	i 210	i 1,805
Acquisition and restructuring		84	—	—	84
Depreciation and amortization		i 537	i 71	i 453	i 1,061
		i 6,250	i 515	i 2,057	i 8,822
Operating income (loss)		i 1,544	( i 39)	( i 35)	i 1,470
Other income (expense):
Interest expense		( i 435)	( i 27)	( i 195)	( i 657)
Share of earnings (losses) of affiliates, net		( i 24)	i 18	i 12	i 6
Unrealized gain/(loss) on inter-group interests		—	( i 42)	i 42	—
Realized and unrealized gains (losses) on financial instruments, net		( i 41)	( i 4)	( i 270)	( i 315)
Other, net		( i 38)	i 2	i 45	i 9
		( i 538)	( i 53)	( i 366)	( i 957)
Earnings (loss) before income taxes		i 1,006	( i 92)	( i 401)	i 513
Income tax (expense) benefit (note 3)		( i 271)	i 15	i 90	( i 166)
Net earnings (loss)		i 735	( i 77)	( i 311)	i 347
Less net earnings (loss) attributable to the noncontrolling interests		i 241	—	—	i 241
Net earnings (loss) attributable to Liberty stockholders	$	i 494	( i 77)	( i 311)	i 106

STATEMENT OF OPERATIONS INFORMATION

December 31, 2018

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	i 5,771	—	—	i 5,771
Formula 1 revenue		—	—	i 1,827	i 1,827
Other revenue		—	i 442	—	i 442
Total revenue		i 5,771	i 442	i 1,827	i 8,040
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		i 1,394	—	—	i 1,394
Programming and content		i 406	—	—	i 406
Customer service and billing		i 382	—	—	i 382
Other		i 126	—	—	i 126
Cost of Formula 1 revenue		—	—	i 1,273	i 1,273
Subscriber acquisition costs		i 470	—	—	i 470
Other operating expenses		i 123	i 268	—	i 391
Selling, general and administrative		i 878	i 97	i 204	i 1,179
Acquisition and restructuring		i 3	—	—	i 3
Depreciation and amortization		i 369	i 76	i 460	i 905
		i 4,151	i 441	i 1,937	i 6,529
Operating income (loss)		i 1,620	i 1	( i 110)	i 1,511
Other income (expense):
Interest expense		( i 388)	( i 26)	( i 192)	( i 606)
Share of earnings (losses) of affiliates, net		( i 11)	i 12	i 17	i 18
Unrealized gain/(loss) on inter-group interests		—	( i 24)	i 24	—
Realized and unrealized gains (losses) on financial instruments, net		( i 1)	( i 2)	i 43	i 40
Other, net		i 25	i 35	i 18	i 78
		( i 375)	( i 5)	( i 90)	( i 470)
Earnings (loss) before income taxes		i 1,245	( i 4)	( i 200)	i 1,041
Income tax (expense) benefit (note 3)		( i 241)	i 15	i 50	( i 176)
Net earnings (loss)		i 1,004	i 11	( i 150)	i 865
Less net earnings (loss) attributable to the noncontrolling interests		i 328	i 6	—	i 334
Net earnings (loss) attributable to Liberty stockholders	$	i 676	i 5	( i 150)	i 531

STATEMENT OF CASH FLOWS INFORMATION

December 31, 2020

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	( i 719)	( i 78)	( i 594)	( i 1,391)
Adjustments to reconcile net earnings to net cash provided by operating activities:			.
Depreciation and amortization		i 573	i 69	i 441	i 1,083
Stock-based compensation		i 234	i 6	i 21	i 261
Impairment of intangible assets		i 976	—	—	i 976
Share of (earnings) loss of affiliates, net		i 484	( i 6)	i 108	i 586
Unrealized (gains) losses on intergroup interests, net		( i 125)	( i 42)	i 167	—
Realized and unrealized (gains) losses on financial instruments, net		i 521	i 10	( i 129)	i 402
Noncash interest expense		i 12	i 1	i 4	i 17
Losses (gains) on dilution of investment in affiliate		( i 4)	—	—	( i 4)
Loss on early extinguishment of debt		i 40	—	—	i 40
Deferred income tax expense (benefit)		i 40	( i 10)	( i 125)	( i 95)
Intergroup tax allocation		i 5	( i 28)	i 23	—
Intergroup tax (payments) receipts		i 8	i 2	( i 10)	—
Other charges (credits), net		i 26	i 9	—	i 35
Changes in operating assets and liabilities
Current and other assets		i 32	( i 29)	( i 37)	( i 34)
Payables and other liabilities		( i 179)	i 41	( i 8)	( i 146)
Net cash provided (used) by operating activities		i 1,924	( i 55)	( i 139)	i 1,730
Cash flows from investing activities:
Cash proceeds from dispositions of investments		—	—	i 13	i 13
Cash (paid) received for acquisitions, net of cash acquired		( i 300)	—	—	( i 300)
Investments in equity method affiliates and debt and equity securities		( i 96)	—	( i 17)	( i 113)
Return of investments in equity method affiliates		—	—	i 105	i 105
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities		i 20	—	—	i 20
Capital expended for property and equipment, including internal-use software and website development		( i 350)	( i 81)	( i 21)	( i 452)
Other investing activities, net		( i 8)	i 4	( i 5)	( i 9)
Net cash provided (used) by investing activities		( i 734)	( i 77)	i 75	( i 736)
Cash flows from financing activities:
Borrowings of debt		i 4,149	i 228	i 521	i 4,898
Repayments of debt		( i 2,203)	( i 114)	( i 614)	( i 2,931)
Intergroup Loan (repayment) borrowing		( i 750)	—	i 750	—
Liberty SiriusXM stock repurchases		( i 249)	—	( i 69)	( i 318)
Subsidiary shares repurchased by subsidiary		( i 1,555)	—	—	( i 1,555)
Reattribution between Liberty SiriusXM Group and Liberty Formula One Group		( i 608)	—	i 608	—
Proceeds from Liberty SiriusXM common stock rights offering		i 754	—	—	i 754
Cash dividends paid by subsidiary		( i 64)	—	—	( i 64)
Taxes paid in lieu of shares issued for stock-based compensation		( i 116)	( i 1)	( i 3)	( i 120)
Other financing activities, net		( i 47)	( i 8)	( i 35)	( i 90)
Net cash provided (used) by financing activities		( i 689)	i 105	i 1,158	i 574
Effect of foreign exchange rates on cash, cash equivalents and restricted cash		—	—	i 3	i 3
Net increase (decrease) in cash, cash equivalents and restricted cash		i 501	( i 27)	i 1,097	i 1,571
Cash, cash equivalents and restricted cash at beginning of period		i 507	i 212	i 587	i 1,306
Cash, cash equivalents and restricted cash at end of period	$	i 1,008	i 185	i 1,684	i 2,877

STATEMENT OF CASH FLOWS INFORMATION

December 31, 2019

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	i 735	( i 77)	( i 311)	i 347
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		i 537	i 71	i 453	i 1,061
Stock-based compensation		i 267	i 17	i 28	i 312
Share of (earnings) loss of affiliates, net		i 24	( i 18)	( i 12)	( i 6)
Unrealized (gains) losses on intergroup interests, net		—	i 42	( i 42)	—
Realized and unrealized (gains) losses on financial instruments, net		i 41	i 4	i 270	i 315
Noncash interest expense		i 7	i 1	i 1	i 9
Losses (gains) on dilution of investment in affiliate		—	—	( i 7)	( i 7)
Loss on early extinguishment of debt		i 57	—	—	i 57
Deferred income tax expense (benefit)		i 268	( i 7)	( i 141)	i 120
Intergroup tax allocation		( i 21)	( i 8)	i 29	—
Intergroup tax (payments) receipts		( i 3)	i 21	( i 18)	—
Other charges (credits), net		i 4	i 18	( i 14)	i 8
Changes in operating assets and liabilities
Current and other assets		( i 11)	( i 12)	i 20	( i 3)
Payables and other liabilities		i 39	i 23	i 38	i 100
Net cash provided (used) by operating activities		i 1,944	i 75	i 294	i 2,313
Cash flows from investing activities:
Cash proceeds from dispositions of investments		i 373	—	i 69	i 442
Cash (paid) received for acquisitions, net of cash acquired		i 313	—	—	i 313
Investments in equity method affiliates and debt and equity securities		( i 19)	( i 4)	( i 6)	( i 29)
Return of investments in equity method affiliates		—	—	i 23	i 23
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities		i 11	—	—	i 11
Capital expended for property and equipment, including internal-use software and website development		( i 363)	( i 103)	( i 44)	( i 510)
Other investing activities, net		i 69	—	( i 5)	i 64
Net cash provided (used) by investing activities		i 384	( i 107)	i 37	i 314
Cash flows from financing activities:
Borrowings of debt		i 5,795	i 96	i 129	i 6,020
Repayments of debt		( i 4,833)	( i 31)	( i 7)	( i 4,871)
Liberty SiriusXM stock repurchases		( i 419)	—	( i 24)	( i 443)
Subsidiary shares repurchased by subsidiary		( i 2,159)	—	—	( i 2,159)
Cash dividends paid by subsidiary		( i 68)	—	—	( i 68)
Taxes paid in lieu of shares issued for stock-based compensation		( i 201)	( i 4)	( i 6)	( i 211)
Other financing activities, net		( i 38)	( i 7)	i 4	( i 41)
Net cash provided (used) by financing activities		( i 1,923)	i 54	i 96	( i 1,773)
Net increase (decrease) in cash, cash equivalents and restricted cash		i 405	i 22	i 427	i 854
Cash, cash equivalents and restricted cash at beginning of period		i 102	i 190	i 160	i 452
Cash, cash equivalents and restricted cash at end of period	$	i 507	i 212	i 587	i 1,306

STATEMENT OF CASH FLOWS INFORMATION

December 31, 2018

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	i 1,004	i 11	( i 150)	i 865
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		i 369	i 76	i 460	i 905
Stock-based compensation		i 156	i 11	i 25	i 192
Share of (earnings) loss of affiliates, net		i 11	( i 12)	( i 17)	( i 18)
Unrealized (gains) losses on intergroup interests, net		—	i 24	( i 24)	—
Realized and unrealized (gains) losses on financial instruments, net		i 1	i 2	( i 43)	( i 40)
Noncash interest expense		( i 8)	i 5	i 2	( i 1)
Losses (gains) on dilution of investment in affiliate		—	—	i 1	i 1
Loss on early extinguishment of debt		—	—	i 1	i 1
Deferred income tax expense (benefit)		i 231	( i 1)	( i 63)	i 167
Intergroup tax allocation		i 22	( i 14)	( i 8)	—
Intergroup tax (payments) receipts		( i 20)	i 35	( i 15)	—
Other charges (credits), net		i 2	( i 20)	i 1	( i 17)
Changes in operating assets and liabilities
Current and other assets		( i 4)	i 8	( i 35)	( i 31)
Payables and other liabilities		i 21	( i 22)	i 133	i 132
Net cash provided (used) by operating activities		i 1,785	i 103	i 268	i 2,156
Cash flows from investing activities:
Cash proceeds from dispositions of investments		—	i 155	i 244	i 399
Cash (paid) received for acquisitions, net of cash acquired		( i 2)	—	—	( i 2)
Investments in equity method affiliates and debt and equity securities		( i 405)	—	( i 9)	( i 414)
Return of investments in equity method affiliates		—	i 50	i 14	i 64
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities		i 14	—	—	i 14
Capital expended for property and equipment, including internal-use software and website development		( i 356)	( i 33)	( i 14)	( i 403)
Other investing activities, net		( i 7)	( i 13)	( i 8)	( i 28)
Net cash provided (used) by investing activities		( i 756)	i 159	i 227	( i 370)
Cash flows from financing activities:
Borrowings of debt		i 2,795	i 123	i 699	i 3,617
Repayments of debt		( i 2,431)	( i 317)	( i 1,309)	( i 4,057)
Liberty SiriusXM stock repurchases		( i 466)	—	—	( i 466)
Subsidiary shares repurchased by subsidiary		( i 1,314)	—	—	( i 1,314)
Cash dividends paid by subsidiary		( i 59)	—	—	( i 59)
Taxes paid in lieu of shares issued for stock-based compensation		( i 127)	—	( i 3)	( i 130)
Other financing activities, net		i 50	( i 18)	( i 3)	i 29
Net cash provided (used) by financing activities		( i 1,552)	( i 212)	( i 616)	( i 2,380)
Effect of foreign exchange rates on cash, cash equivalents and restricted cash		—	—	( i 1)	( i 1)
Net increase (decrease) in cash, cash equivalents and restricted cash		( i 523)	i 50	( i 122)	( i 595)
Cash, cash equivalents and restricted cash at beginning of period		i 625	i 140	i 282	i 1,047
Cash, cash equivalents and restricted cash at end of period	$	i 102	i 190	i 160	i 452

Notes to Attributed Financial Information (Continued)

(unaudited)

(1)

As discussed in note 2 to the accompanying consolidated financial statements, on April 15, 2016 Liberty completed a reclassification of Liberty Media Corporation’s (“Liberty” or the “Company”) common stock into three new tracking stock groups, one designated as the Liberty Braves common stock, one designated as the Liberty Media common stock and one designated as the Liberty SiriusXM common stock (the “Recapitalization”). In January 2017, the Liberty Media Group was renamed the Liberty Formula One Group (the “Formula One Group”).

A tracking stock is a type of common stock that the issuing company intends to reflect or "track" the economic performance of a particular business or "group," rather than the economic performance of the company as a whole. While the Liberty SiriusXM Group, Liberty Braves Group (“Braves Group”) and Formula One Group have separate collections of businesses, assets and liabilities attributed to them, no group is a separate legal entity and therefore cannot own assets, issue securities or enter into legally binding agreements. Therefore, the Liberty SiriusXM Group, Braves Group and Formula One Group do not represent separate legal entities, but rather represent those businesses, assets and liabilities that have been attributed to each respective group. Holders of tracking stock have no direct claim to the group's stock or assets and therefore, do not own, by virtue of their ownership of a Liberty tracking stock, any equity or voting interest in a company, such as Sirius XM Holdings Inc. (“Sirius XM Holdings”), Formula 1 or Live Nation Entertainment, Inc. (“Live Nation”), in which Liberty holds an interest and that is attributed to a Liberty tracking stock group, such as the Liberty SiriusXM Group or the Formula One Group. Holders of tracking stock are also not represented by separate boards of directors. Instead, holders of tracking stock are stockholders of the parent corporation, with a single board of directors and subject to all of the risks and liabilities of the parent corporation.

As part of the Recapitalization, the Formula One Group initially held a 20% intergroup interest in the Braves Group. As a result of a rights offering in May 2016 to holders of Liberty Braves common stock to acquire shares of Series C Liberty Braves common stock, the number of notional shares underlying the intergroup interest held by the Formula One Group was adjusted to 9,084,940, representing a 15.1% intergroup interest in the Braves Group as of December 31, 2019. In addition, during the fourth quarter of 2019, the Formula One Group began purchasing shares of Liberty SiriusXM common stock. As of December 31, 2019, the number of notional shares representing the intergroup interest held by the Formula One Group was 493,278, representing a 0.2% intergroup interest in the Liberty SiriusXM Group.

On April 22, 2020, the Company’s board of directors approved the immediate reattribution of certain assets and liabilities between the Formula One Group and the Liberty SiriusXM Group (collectively, the “reattribution”).

The assets reattributed from the Formula One Group to the Liberty SiriusXM Group, valued at $2.8 billion, consisted of:

●

Liberty’s entire Live Nation stake, consisting of approximately 69.6 million shares of Live Nation common stock;

●

a newly-created Formula One Group intergroup interest, consisting of approximately 5.3 million notional shares of Liberty Formula One common stock, to cover exposure under Liberty’s 1.375% cash convertible senior notes due 2023 (the “Convertible Notes”);

●

the bond hedge and warrants associated with the Convertible Notes;

●

the entire Liberty SiriusXM Group intergroup interest, consisting of approximately 1.9 million notional shares of Liberty SiriusXM common stock, thereby eliminating the Liberty SiriusXM Group intergroup interest; and

●

a portion, consisting of approximately 2.3 million notional shares of Liberty Braves common stock, of the Formula One Group’s intergroup interest in the Braves Group, to cover exposure under the Convertible Notes.

The reattributed liabilities, valued at $1.3 billion, consisted of:

●

the Convertible Notes;

●

Liberty’s 2.25% exchangeable senior debentures due 2048; and

●

Liberty’s margin loan secured by shares of Live Nation (“Live Nation Margin Loan”).

Notes to Attributed Financial Information (Continued)

(unaudited)

Similarly, $1.5 billion of net asset value has been reattributed from the Liberty SiriusXM Group to the Formula One Group, comprised of:

●

a call spread between the Formula One Group and the Liberty SiriusXM Group with respect to 34.8 million of the Live Nation shares that were reattributed to the Liberty SiriusXM Group; and

●

a net cash payment of $1.4 billion from the Liberty SiriusXM Group to the Formula One Group, which was funded by a combination of (x) cash on hand, (y) an additional $400 million drawn from the Company’s existing margin loan secured by shares of common stock of Sirius XM Holdings, resulting in an aggregate outstanding balance of $750 million, and (z) the creation of an intergroup loan obligation from the Liberty SiriusXM Group to the Formula One Group in the principal amount of $750 million, plus interest thereon, which was repaid with the proceeds from the LSXMK rights offering described below (the “Intergroup Loan”).

The reattribution is reflected in the Company’s financial statements on a prospective basis.

As of December 31, 2020, the Liberty SiriusXM Group is primarily comprised of Liberty’s interests in Sirius XM Holdings and Live Nation, corporate cash, Liberty’s 1.375% Cash Convertible Notes due 2023 and related financial instruments, Liberty’s 2.125% Exchangeable Senior Debentures due 2048, Liberty’s 2.25% Exchangeable Senior Debentures due 2048, Liberty’s 2.75% Exchangeable Senior Debentures due 2049, Liberty’s 0.5% Exchangeable Senior Debentures due 2050 and margin loan obligations incurred by wholly-owned special purpose subsidiaries of Liberty. On February 1, 2019, Sirius XM Holdings acquired Pandora Media, Inc., which continues to operate as Pandora Media, LLC (“Pandora”). See note 5 to the accompanying consolidated financial statements for information related to Sirius XM Holdings’ acquisition of Pandora. Additionally, as discussed below, the Liberty SiriusXM Group retains intergroup interests in the Braves Group and the Formula One Group. As of December 31, 2020, the Liberty SiriusXM Group has cash and cash equivalents of approximately $996 million, which includes $71 million of subsidiary cash.

The Braves Group is primarily comprised of our consolidated subsidiary, Braves Holdings, LLC (“Braves Holdings”), which indirectly owns the Atlanta Braves Major League Baseball Club (“ANLBC”) and certain assets and liabilities associated with ANLBC’s stadium and mixed use development project (the “Development Project”) and corporate cash as of December 31, 2020. As of December 31, 2020, the Braves Group has cash and cash equivalents of approximately $151 million, which includes $73 million of subsidiary cash. Additionally, as discussed below, the Liberty SiriusXM Group and the Formula One Group retain intergroup interests in the Braves Group.

The Formula One Group is primarily comprised of all of the businesses, assets and liabilities of Liberty other than those specifically attributed to the Liberty SiriusXM Group or the Braves Group, including, as of December 31, 2020, Liberty’s interest in Formula 1, cash, an intergroup interest in the Braves Group, Liberty’s 1% Cash Convertible Notes due 2023 and Liberty’s 2.25% Exchangeable Senior Debentures due 2046. As of December 31, 2020, the Formula One Group has cash and cash equivalents of approximately $1,684 million, which includes $265 million of subsidiary cash.

The number of notional shares representing the intergroup interest in the Braves Group held by the Formula One Group is 6,792,903, representing an 11.1% intergroup interest at December 31, 2020. The number of notional shares representing the intergroup interest in the Braves Group held by the Liberty SiriusXM Group is 2,292,037, representing a 3.7% intergroup interest at December 31, 2020. The number of notional shares representing the intergroup interest in the Formula One Group held by the Liberty SiriusXM Group is 5,271,475, representing a 2.2% intergroup interest at December 31, 2020. The intergroup interests represent quasi-equity interests which are not represented by outstanding shares of common stock; rather, the Formula One Group and Liberty SiriusXM Group have attributed interests in the Braves Group, which are generally stated in terms of a number of shares of Liberty Braves common stock, and the Liberty SiriusXM Group also has an attributed interest in the Formula One Group, which is generally stated in terms of a number of shares of Liberty Formula One common stock. Each reporting period, the notional shares representing the intergroup interests are marked to fair value. The changes in fair value are recorded in the Unrealized gain (loss) on intergroup interests line item in the unaudited attributed consolidated statements of operations.

The Braves Group intergroup interests attributable to the Formula One Group and the Liberty SiriusXM Group are reflected in the Investment in intergroup interests line item, and the Braves Group liabilities for the

Notes to Attributed Financial Information (Continued)

(unaudited)

intergroup interests are reflected in the Redeemable intergroup interests line item in the unaudited attributed consolidated balance sheets. Similarly, the Formula One Group intergroup interest attributable to the Liberty SiriusXM Group is reflected in the Investment in intergroup interests line item, and the Formula One Group liability for the intergroup interest is reflected in the Redeemable intergroup interests line item in the unaudited attributed consolidated balance sheets. Both accounts are presented as noncurrent, as there are currently no plans for the settlement of the intergroup interests. Appropriate eliminating entries are recorded in the Company’s consolidated financial statements.

As the notional shares underlying the intergroup interests are not represented by outstanding shares of common stock, such shares have not been officially designated Series A, B or C Liberty Braves common stock and Series A, B or C Liberty Formula One common stock, respectively. However, Liberty has assumed that the notional shares (if and when issued) related to the Formula One Group interest in the Braves Group would be comprised of Series C Liberty Braves common stock in order to not dilute voting percentages and the notional shares (if and when issued) related to the Liberty SiriusXM Group interest in the Braves Group would be comprised of Series A Liberty Braves common stock since Series A Liberty Braves common stock underlie the 1.375% convertible bonds. Therefore, the market prices of Series C Liberty Braves and Series A Liberty Braves common stock are used for the quarterly mark-to-market adjustment for the intergroup interests held by Formula One Group and Liberty SiriusXM Group, respectively, through the unaudited attributed consolidated statements of operations. Liberty has assumed that the notional shares (if and when issued) related to the Liberty SiriusXM Group interest in the Formula One Group would be comprised of Series A Liberty Formula One common stock since Series A Formula One common stock underlie the 1.375% convertible bonds. Therefore, the market price of Series A Liberty Formula One common stock is used for the quarterly mark-to-market adjustment through the unaudited attributed consolidated statements of operations. The intergroup interests will remain outstanding until the redemption of the outstanding interests, at the discretion of the Company’s board of directors, through transfer of securities, cash and/or other assets from the Braves Group and Liberty SiriusXM Group, respectively, to the Formula One Group.

The intergroup interests will remain outstanding until the redemption of the outstanding interests, at the discretion of the Company’s Board of Directors, through a transfer of securities, cash and/or other assets from the Braves Group or Formula One Group to the respective tracking stock group.

On April 22, 2020, the Company’s board of directors authorized management of the Company to cause subscription rights (the “Series C Liberty SiriusXM Rights”) to purchase shares of Series C Liberty SiriusXM common stock, par value $0.01 per share (“LSXMK”), in a rights offering (the “LSXMK rights offering”) to be distributed to holders of Series A Liberty SiriusXM common stock, par value $0.01 per share, Series B Liberty SiriusXM common stock, par value $0.01 per share, and LSXMK. In the LSXMK rights offering, Liberty distributed 0.0939 of a Series C Liberty SiriusXM Right for each share of Series A, Series B or Series C Liberty SiriusXM common stock held as of 5:00 p.m., New York City time, on May 13, 2020. Fractional Series C Liberty SiriusXM Rights were rounded up to the nearest whole right. Each whole Series C Liberty SiriusXM Right entitled the holder to purchase, pursuant to the basic subscription privilege, one share of LSXMK at a subscription price of $25.47, which was equal to an approximate 20% discount to the volume weighted average trading price of LSXMK for the 3-day trading period ending on and including May 8, 2020. Each Series C Liberty SiriusXM Right also entitled the holder to subscribe for additional shares of LSXMK that were unsubscribed for in the LSXMK rights offering pursuant to an oversubscription privilege. The LSXMK rights offering commenced on May 18, 2020, which was also the ex-dividend date for the distribution of the Series C Liberty SiriusXM Rights. The LSXMK rights offering expired at 5:00 p.m. New York City time, on June 5, 2020 and was fully subscribed with 29,594,089 shares of LSXMK issued to those rightsholders exercising basic and, if applicable, oversubscription privileges. The proceeds from the LSXMK rights offering, which aggregated approximately $754 million, were used to repay the outstanding balance on the Intergroup Loan and accrued interest.

For information relating to investments in affiliates accounted for using the equity method and debt, see notes 7 and 9, respectively, of the accompanying consolidated financial statements.

(2)

Cash compensation expense for our corporate employees is allocated among the Liberty SiriusXM Group, Braves Group and the Formula One Group based on the estimated percentage of time spent providing services for each group. On an annual basis estimated time spent will be determined through an interview process and a review of personnel duties unless transactions significantly change the composition of companies and

Notes to Attributed Financial Information (Continued)

(unaudited)

investments in either respective group which would require a timelier reevaluation of estimated time spent. 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. Stock compensation related to each tracking stock is calculated based on actual awards outstanding.

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.

(3)

We have accounted for income taxes for the Liberty SiriusXM Group, the Braves Group and the Formula One 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 respective groups.

Liberty SiriusXM Group

Income tax benefit (expense) consists of:


	Years ended December 31,
	2020		2019	2018

	amounts in millions
Current:
Federal	$	(4)	18	(22)
State and local		(62)	(21)	12
Foreign		—	—	—
		(66)	(3)	(10)
Deferred:
Federal		(29)	(241)	(235)
State and local		(11)	(27)	4
Foreign		—	—	—
		(40)	(268)	(231)
Income tax benefit (expense)	$	(106)	(271)	(241)

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended December 31, 2020, 2019 and 2018 as a result of the following:


	Years ended December 31,
	2020		2019	2018

	amounts in millions
Computed expected tax benefit (expense)	$	129	(211)	(262)
State and local income taxes, net of federal income taxes		(49)	(45)	22
Foreign income taxes, net of federal income taxes		—	—	(1)
Taxable dividends, net of dividends received deductions		(13)	(11)	(28)
Federal tax credits		24	26	27
Change in valuation allowance affecting tax expense		18	(4)	(14)
Change in tax rate		—	(45)	(3)
Deductible stock-based compensation		14	47	37
Non-deductible executive compensation		(12)	(19)	(6)
Impairment of nondeductible goodwill		(194)	—	—
Intergroup Interest		(17)	—	—
Other, net		(6)	(9)	(13)
Income tax benefit (expense)	$	(106)	(271)	(241)

Notes to Attributed Financial Information (Continued)

(unaudited)

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:


	December 31,
	2020		2019

	amounts in millions
Deferred tax assets:
Tax loss and credit carryforwards	$	765	1,018
Accrued stock compensation		94	95
Other accrued liabilities		160	185
Deferred revenue		62	81
Discount on debt		44	2
Investments		154	—
Other future deductible amounts		4	11
Deferred tax assets		1,283	1,392
Valuation allowance		(53)	(70)
Net deferred tax assets		1,230	1,322
Deferred tax liabilities:
Investments		—	31
Fixed assets		370	384
Intangible assets		2,696	2,749
Deferred tax liabilities		3,066	3,164
Net deferred tax liabilities	$	1,836	1,842

Braves Group

Income tax benefit (expense) consists of:


	Years ended December 31,
	2020		2019	2018

	amounts in millions
Current:
Federal	$	28	8	14
State and local		—	—	—
Foreign		—	—	—
		28	8	14
Deferred:
Federal		—	—	9
State and local		10	7	(8)
Foreign		—	—	—
		10	7	1
Income tax benefit (expense)	$	38	15	15

Notes to Attributed Financial Information (Continued)

(unaudited)

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended December 31, 2020, 2019 and 2018 as a result of the following:


	Years ended December 31,
	2020		2019	2018

	amounts in millions
Computed expected tax benefit (expense)	$	24	19	1
State and local income taxes, net of federal income taxes		7	6	(4)
Federal tax credits		—	—	3
Change in valuation allowance affecting tax expense		—	3	5
Change in tax rate		—	(3)	2
Deductible stock-based compensation		—	2	—
Intergroup interest		9	(9)	(5)
Other, net		(2)	(3)	13
Income tax benefit (expense)	$	38	15	15

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:


	December 31,
	2020		2019

	amounts in millions
Deferred tax assets:
Tax loss and credit carryforwards	$	19	6
Accrued stock compensation		2	2
Other accrued liabilities		47	46
Other future deductible amounts		20	20
Deferred tax assets		88	74
Valuation allowance		—	—
Net deferred tax assets		88	74
Deferred tax liabilities:
Investments		11	10
Fixed assets		69	71
Intangible assets		46	47
Other future taxable amounts		7	7
Deferred tax liabilities		133	135
Net deferred tax liabilities	$	45	61

Notes to Attributed Financial Information (Continued)

(unaudited)

Liberty Formula One Group

Income tax benefit (expense) consists of:


	Years ended December 31,
	2020		2019	2018

	amounts in millions
Current:
Federal	$	(11)	(27)	(6)
State and local		—	(3)	1
Foreign		(2)	(21)	(8)
		(13)	(51)	(13)
Deferred:
Federal		41	102	(2)
State and local		—	—	2
Foreign		84	39	63
		125	141	63
Income tax benefit (expense)	$	112	90	50

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended December 31, 2020, 2019 and 2018 as a result of the following:


	Years ended December 31,
	2020		2019	2018

	amounts in millions
Computed expected tax benefit (expense)	$	148	84	42
State and local income taxes, net of federal income taxes		—	(2)	—
Foreign income taxes, net of federal income taxes		20	26	23
Taxable dividends, net of dividends received deductions		1	1	1
Change in valuation allowance affecting tax expense		(87)	(39)	(53)
Change in tax rate		30	—	2
Settlements with tax authorities		—	—	43
Deductible stock-based compensation		—	22	1
Non-deductible executive compensation		(5)	(3)	(1)
Intergroup interest		8	9	5
Other, net		(3)	(8)	(13)
Income tax benefit (expense)	$	112	90	50

Notes to Attributed Financial Information (Continued)

(unaudited)

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:


	December 31,
	2020		2019

	amounts in millions
Deferred tax assets:
Tax loss and credit carryforwards	$	652	486
Accrued stock compensation		11	9
Other accrued liabilities		10	9
Discount on debt		—	43
Deferred tax assets		673	547
Valuation allowance		(240)	(146)
Net deferred tax assets		433	401
Deferred tax liabilities:
Investments		36	49
Fixed assets		9	3
Intangible Assets		88	116
Discount on debt		19	—
Deferred tax liabilities		152	168
Net deferred tax (assets) liabilities	$	(281)	(233)

(4)

The intergroup balances as December 31, 2020 and December 31, 2019 also include the impact of the timing of certain tax benefits. Per the tracking stock tax sharing policies, consolidated income taxes arising from the Liberty SiriusXM Group in periods prior to the Recapitalization were not subject to tax sharing and were allocated to the Formula One Group. As such, the balance of the Intergroup tax payable between the Liberty SiriusXM Group and the Formula One Group was zero at the effective date of the Recapitalization and is accounted for going forward beginning on such date.

(5)

The Liberty SiriusXM common stock, Liberty Braves common stock and Liberty Formula One common stock have voting and conversion rights under our restated charter. Following is a summary of those rights. Holders of Series A common stock of each group will be entitled to one vote per share, and holders of Series B common stock of each group will be entitled to ten votes per share. Holders of Series C common stock of each group 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 will vote as a single class. In certain limited circumstances, the board may elect to seek the approval of the holders of only Series A and Series B Liberty SiriusXM common stock, Series A and Series B Liberty Braves common stock, or the approval of the holders of only Series A and Series B Liberty Formula One common stock.

At the option of the holder, each share of Series B common stock of each group 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 another other group.

Dates Referenced Herein and Documents Incorporated by Reference

This ‘10-K’ Filing	Date	Other Filings

Filed on:	2/26/21	8-K
For Period end:	12/31/20	11-K
	6/5/20	25-NSE, 4
	5/18/20	4, 8-K
	5/13/20
	5/8/20	8-K
	4/22/20	8-K
	12/31/19	10-K, 11-K
	2/1/19
	12/31/18	10-K, 11-K, 4
	4/15/16	4, 8-K, 8-K/A, CERTNAS, POS EX, S-8 POS
		List all Filings

4 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/28/24  Liberty Media Corp.               10-K       12/31/23  120:28M                                    Toppan Merrill Bridge/FA
 3/01/23  Liberty Media Corp.               10-K       12/31/22  121:29M                                    Toppan Merrill Bridge/FA
 2/25/22  Liberty Media Corp.               10-K       12/31/21  125:30M                                    Toppan Merrill Bridge/FA
11/04/21  Liberty Media Corp.               S-3ASR     11/04/21    3:236K                                   Toppan Merrill/FA

34 Previous Filings that this Filing References

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/26/20  Liberty Media Corp.               10-K       12/31/19  120:30M                                    Toppan Merrill Bridge/FA
12/19/19  Liberty Media Corp.               8-K:5,9    12/13/19   16:938K                                   Toppan Merrill/FA
 5/09/19  Liberty Media Corp.               10-Q        3/31/19   88:17M                                    Toppan Merrill Bridge/FA
 7/03/18  Sirius XM Holdings Inc.           8-K:1,2,9   6/29/18    2:935K                                   Donnelley … Solutions/FA
 5/09/18  Liberty Media Corp.               10-Q        3/31/18   84:16M                                    Toppan Merrill Bridge/FA
 3/01/18  Liberty Media Corp.               10-K       12/31/17  104:27M                                    Toppan Merrill Bridge/FA
11/09/17  Liberty Media Corp.               10-Q        9/30/17   77:18M                                    Toppan Merrill Bridge/FA
 9/22/17  Liberty Media Corp.               8-K:1,7,9   9/19/17    6:448K                                   Toppan Merrill/FA
 8/09/17  Liberty Media Corp.               10-Q        6/30/17   73:17M                                    Toppan Merrill Bridge/FA
 7/05/17  Sirius XM Holdings Inc.           8-K:1,2,8,9 7/05/17    3:919K                                   Donnelley … Solutions/FA
 4/20/17  Liberty Media Corp.               DEF 14A     5/24/17    1:2.1M                                   Toppan Merrill-FA
 2/28/17  Liberty Media Corp.               10-K       12/31/16  100:25M                                    Toppan Merrill Bridge/FA
 1/24/17  Liberty Media Corp.               8-A12B/A               4:1M                                     Toppan Merrill/FA
12/09/16  Liberty Media Corp.               DEFM14A    12/09/16    1:5.7M                                   Toppan Merrill-FA
 8/05/16  Liberty Media Corp.               10-Q        6/30/16   79:20M                                    Toppan Merrill Bridge/FA
 5/24/16  Sirius XM Holdings Inc.           8-K:1,2,9   5/23/16    2:455K                                   Donnelley … Solutions/FA
 4/20/16  Liberty Media Corp.               8-K/A:2,9   4/15/16    2:481K
 2/26/16  Liberty Media Corp.               10-K       12/31/15   97:15M                                    Toppan Merrill Bridge/FA
12/22/15  Liberty Media Corp.               S-4                   12:2.7M                                   Toppan Merrill-FA
 8/06/15  Liberty Media Corp.               8-K:2,5,9   8/06/15    3:890K
 8/05/15  Liberty Media Corp.               10-Q        6/30/15   61:7.7M                                   Toppan Merrill Bridge/FA
 6/19/15  Sirius XM Holdings Inc.           8-K:1,2,9   6/16/15    2:909K                                   Command Financial
 5/08/15  Liberty Media Corp.               10-Q        3/31/15   64:9.4M                                   Toppan Merrill Bridge/FA
 4/22/14  Sirius XM Holdings Inc.           8-K:1,9     4/22/14    2:68K                                    Command Financial
 2/28/14  Liberty Media Corp.               10-K       12/31/13  106:19M
11/05/13  Liberty Media Corp.               10-Q        9/30/13   89:14M
10/10/13  Liberty Media Corp.               8-K:7,9    10/10/13    3:123K                                   Toppan Merrill/FA
12/17/12  Liberty Media Corp.               10-12B/A   12/14/12    6:4.2M                                   Toppan Merrill-FA
12/10/12  Sirius XM Holdings Inc.           8-K:1,2,9  12/05/12    2:697K                                   Donnelley … Solutions/FA
 2/23/12  Starz Acquisition LLC             10-K       12/31/11  102:15M
 9/23/11  Starz Acquisition LLC             POS EX      9/23/11   17:2M                                     Toppan Merrill-FA
 2/25/10  Qurate Retail, Inc.               10-K       12/31/09   69:12M                                    Toppan Merrill-FA
 2/27/09  Qurate Retail, Inc.               10-K       12/31/08   16:5.2M                                   Toppan Merrill-FA
 8/10/99  XM Satellite Radio Holdings Inc.  S-1/A                 14:928K                                   Donnelley Fin’l S… 09/FA

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Filing Submission 0001558370-21-001967 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Liberty Media Corp. – ‘10-K’ for 12/31/20 – ‘EX-99.1’

On: Friday, 2/26/21, at 1:31pm ET · For: 12/31/20 · Accession #: 1558370-21-1967 · File #: 1-35707

Annual Report — Form 10-KFiling Table of Contents

‘EX-99.1’ — Miscellaneous Exhibit

This Exhibit is an HTML Document rendered as filed. [ Alternative Formats ]

Dates Referenced Herein and Documents Incorporated by Reference

4 Subsequent Filings that Reference this Filing

34 Previous Filings that this Filing References

Annual Report — Form 10-K
Filing Table of Contents