LMC_Ex 99-1

Exhibit 99.1

Unaudited Attributed Financial Information for Tracking Stock Groups

During November 2015, Liberty Media Corporation’s (“Liberty”) board of directors authorized management to pursue a reclassification of the Company’s common stock into three new tracking stock groups, one to be designated as the Liberty Braves tracking stock, one to be designated as the Liberty Media tracking stock and one to be designated as the Liberty SiriusXM tracking stock (the “Recapitalization”), and to cause to be distributed subscription rights related to the Liberty Braves tracking stock following the creation of the new tracking stocks. The Recapitalization was completed on April 15, 2016 and the newly issued shares commenced trading or quotation in the regular way on the Nasdaq Global Select Market or the OTC Markets, as applicable, on Monday, April 18, 2016. Shortly following the completion of the second closing of the acquisition of Formula 1 on January 23, 2017, the Liberty Media Group was renamed the Liberty Formula One Group. Historical information of the Liberty Media Group and Liberty Media common stock is referred to herein as the Formula One Group and Liberty Formula One common stock, respectively.

The following tables present our assets and liabilities as of December 31, 2018 and December 31, 2017 and revenue, expenses and cash flows for the years ended December 31, 2018, 2017, and 2016. 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, 2018 included in this Annual Report on Form 10-K.

The attributed financial information presented herein has been prepared assuming this attribution had been completed as of January 1, 2014. However, this attribution of historical financial information does not purport to be what actual results and balances would have been if such attribution had actually occurred and been in place during these periods. Therefore, the attributed net earnings (losses) presented in the unaudited attributed financial information are not the same as the net earnings (losses) reflected in the Liberty consolidated financial statements included in this Annual Report on Form 10-K. The net earnings (losses) attributed to the Liberty SiriusXM common stock, Liberty Braves common stock and Liberty Formula One common stock for purposes of those financial statements only relates to the period after the Recapitalization.

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,
	2018		2017
	amounts in millions
Cash and cash equivalents	$	91		615
Investments in affiliates, accounted for using the equity method	$	629		672
Intangible assets not subject to amortization	$	23,781		23,778
Intangible assets subject to amortization, net	$	942		972
Total assets	$	28,292		28,530
Deferred revenue	$	1,932		1,882
Long-term debt, including current portion	$	7,858		7,496
Deferred tax liabilities	$	1,673		1,447
Attributed net assets	$	10,599		10,861
Noncontrolling interest	$	5,108		5,615

Summary Statement of Operations Data:


		Years ended December 31,
	2018		2017	2016
		amounts in millions
Revenue	$	5,771	5,425	5,014
Cost of subscriber services (1)	$	(2,308)	(2,102)	(1,994)
Subscriber acquisition costs	$	(470)	(499)	(513)
Other operating expenses (1)	$	(123)	(113)	(82)
Selling, general and administrative expense (1)	$	(881)	(812)	(761)
Operating income (loss)	$	1,620	1,547	1,352
Interest expense	$	(388)	(356)	(342)
Income tax (expense) benefit	$	(241)	466	(341)
Net earnings (loss) attributable to noncontrolling interests	$	328	535	244
Earnings (loss) attributable to Liberty stockholders	$	676	1,124	413

(1)

Includes stock-based compensation expense as follows:


		Years ended December 31,
	2018		2017	2016
		amounts in millions
Cost of subscriber services	$	37	36	30
Other operating expenses		17	16	13
Selling, general and administrative expense		102	98	85
	$	156	150	128

Braves Group

Summary Balance Sheet Data:


	December 31,		December 31,
	2018		2017
	amounts in millions
Cash and cash equivalents	$	107		132
Property and equipment, net	$	1,041		1,099
Investments in affiliates, accounted for using the equity method	$	92		145
Intangible assets not subject to amortization	$	323		323
Intangible assets subject to amortization, net	$	37		49
Total assets	$	1,805		1,866
Deferred revenue	$	54		51
Long-term debt, including current portion	$	491		662
Deferred tax liabilities	$	69		62
Attributed net assets	$	446		413

Summary Statement of Operations Data:


		Years ended December 31,
	2018		2017	2016
		amounts in millions
Revenue	$	442	386	262
Selling, general and administrative expense (1)	$	(118)	(151)	(67)
Operating income (loss)	$	1	(113)	(61)
Share of earnings (losses) of affiliates, net	$	12	78	9
Income tax (expense) benefit	$	15	36	17
Earnings (loss) attributable to Liberty stockholders	$	5	(25)	(62)

(1)

Includes stock-based compensation of $11 million, $48 million, and $9 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Formula One Group

Summary Balance Sheet Data:


	December 31,		December 31,
	2018		2017
	amounts in millions
Cash and cash equivalents	$	160		282
Investments in debt and equity securities	$	303		526
Investments in affiliates, accounted for using the equity method	$	920		933
Intangible assets not subject to amortization	$	3,956		3,956
Intangible assets subject to amortization, net	$	4,736		5,171
Total assets	$	10,957		11,802
Long-term debt, including current portion	$	5,039		5,796
Attributed net assets	$	5,550		5,669

Summary Statement of Operations Data:


		Years ended December 31,
	2018		2017	2016
		amounts in millions
Revenue	$	1,827	1,783	—
Cost of Formula 1 revenue	$	1,273	1,219	—
Selling, general and administrative expense (1)	$	(204)	(199)	(58)
Legal settlement	$	—	—	511
Operating income (loss)	$	(110)	(40)	443
Interest expense	$	(192)	(220)	(19)
Share of earnings (losses) of affiliates, net	$	17	(3)	(8)
Realized and unrealized gains (losses) on financial instruments, net	$	43	(72)	36
Income tax (expense) benefit	$	50	561	(171)
Earnings (loss) attributable to Liberty stockholders	$	(150)	255	329

(1)

Includes stock-based compensation of $25 million, $32 million, and $13 million for the years ended December 31, 2018, 2017, and 2016, respectively.

BALANCE SHEET INFORMATION

December 31, 2018

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Inter-Group	Consolidated
	Group		Group	Group	Eliminations	Liberty
	amounts in millions
Assets
Current assets:
Cash and cash equivalents	$	91	107	160	—	358
Trade and other receivables, net		233	21	110	—	364
Other current assets		191	129	40	—	360
Total current assets		515	257	310	—	1,082
Intergroup interest in the Braves Group (note 1)		—	—	226	(226)	—
Investments in debt and equity securities (note 1)		967	8	303	—	1,278
Investments in affiliates, accounted for using the equity method (note 1)		629	92	920	—	1,641

Property and equipment, at cost		2,450	1,137	178	—	3,765
Accumulated depreciation		(1,112)	(96)	(88)	—	(1,296)
		1,338	1,041	90	—	2,469

Intangible assets not subject to amortization
Goodwill		14,250	180	3,956	—	18,386
FCC licenses		8,600	—	—	—	8,600
Other		931	143	—	—	1,074
		23,781	323	3,956	—	28,060
Intangible assets subject to amortization, net		942	37	4,736	—	5,715
Other assets		120	47	416	—	583
Total assets	$	28,292	1,805	10,957	(226)	40,828

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 4)	$	(4)	(21)	25	—	—
Accounts payable and accrued liabilities		854	29	233	—	1,116
Current portion of debt (note 1)		3	14	—	—	17
Deferred revenue		1,932	54	93	—	2,079
Other current liabilities		15	8	9	—	32
Total current liabilities		2,800	84	360	—	3,244
Long-term debt (note 1)		7,855	477	5,039	—	13,371
Deferred income tax liabilities (note 3)		1,673	69	(91)	—	1,651
Redeemable intergroup interest (note 1)		—	226	—	(226)	—
Other liabilities		257	511	96	—	864
Total liabilities		12,585	1,367	5,404	(226)	19,130
Equity / Attributed net assets		10,599	446	5,550	—	16,595
Noncontrolling interests in equity of subsidiaries		5,108	(8)	3	—	5,103
Total liabilities and equity	$	28,292	1,805	10,957	(226)	40,828

BALANCE SHEET INFORMATION

December 31, 2017

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Inter-Group	Consolidated
	Group		Group	Group	Eliminations	Liberty
	amounts in millions
Assets
Current assets:
Cash and cash equivalents	$	615	132	282	—	1,029
Trade and other receivables, net		242	32	84	—	358
Other current assets		207	56	93	—	356
Total current assets		1,064	220	459	—	1,743
Intergroup interest in the Braves Group (note 1)		—	—	202	(202)	—
Investments in debt and equity securities (note 1)		580	8	526	—	1,114
Investments in affiliates, accounted for using the equity method (note 1)		672	145	933	—	1,750

Property and equipment, at cost		2,274	1,150	172	—	3,596
Accumulated depreciation		(927)	(51)	(77)	—	(1,055)
		1,347	1,099	95	—	2,541

Intangible assets not subject to amortization
Goodwill		14,247	180	3,956	—	18,383
FCC licenses		8,600	—	—	—	8,600
Other		931	143	—	—	1,074
		23,778	323	3,956	—	28,057
Intangible assets subject to amortization, net		972	49	5,171	—	6,192
Other assets		117	22	460	—	599
Total assets	$	28,530	1,866	11,802	(202)	41,996

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 4)	$	9	(39)	30	—	—
Accounts payable and accrued liabilities		934	58	258	—	1,250
Current portion of debt (note 1)		755	13	—	—	768
Deferred revenue		1,882	51	8	—	1,941
Other current liabilities		3	8	9	—	20
Total current liabilities		3,583	91	305	—	3,979
Long-term debt (note 1)		6,741	649	5,796	—	13,186
Deferred income tax liabilities (note 3)		1,447	62	(31)	—	1,478
Redeemable intergroup interest (note 1)		—	202	—	(202)	—
Other liabilities		283	435	61	—	779
Total liabilities		12,054	1,439	6,131	(202)	19,422
Equity / Attributed net assets		10,861	413	5,669	—	16,943
Noncontrolling interests in equity of subsidiaries		5,615	14	2	—	5,631
Total liabilities and equity	$	28,530	1,866	11,802	(202)	41,996

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:
Subscriber revenue	$	4,594	—	—	4,594
Formula 1 revenue		—	—	1,827	1,827
Other revenue		1,177	442	—	1,619
Total revenue		5,771	442	1,827	8,040
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		1,394	—	—	1,394
Programming and content		406	—	—	406
Customer service and billing		382	—	—	382
Other		126	—	—	126
Cost of Formula 1 revenue		—	—	1,273	1,273
Subscriber acquisition costs		470	—	—	470
Other operating expenses		123	247	—	370
Selling, general and administrative		881	118	204	1,203
Depreciation and amortization		369	76	460	905
		4,151	441	1,937	6,529
Operating income (loss)		1,620	1	(110)	1,511
Other income (expense):
Interest expense		(388)	(26)	(192)	(606)
Share of earnings (losses) of affiliates, net		(11)	12	17	18
Unrealized gain/(loss) on inter-group interest		—	(24)	24	—
Realized and unrealized gains (losses) on financial instruments, net		(1)	(2)	43	40
Other, net		25	35	18	78
		(375)	(5)	(90)	(470)
Earnings (loss) before income taxes		1,245	(4)	(200)	1,041
Income tax (expense) benefit (note 3)		(241)	15	50	(176)
Net earnings (loss)		1,004	11	(150)	865
Less net earnings (loss) attributable to the noncontrolling interests		328	6	—	334
Net earnings (loss) attributable to Liberty stockholders	$	676	5	(150)	531

STATEMENT OF OPERATIONS INFORMATION

December 31, 2017

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	4,473	—	—	4,473
Formula 1 revenue		—	—	1,783	1,783
Other revenue		952	386	—	1,338
Total revenue		5,425	386	1,783	7,594
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		1,210	—	—	1,210
Programming and content		388	—	—	388
Customer service and billing		385	—	—	385
Other		119	—	—	119
Cost of Formula 1 revenue		—	—	1,219	1,219
Subscriber acquisition costs		499	—	—	499
Other operating expenses		113	281	—	394
Selling, general and administrative		812	151	199	1,162
Depreciation and amortization		352	67	405	824
		3,878	499	1,823	6,200
Operating income (loss)		1,547	(113)	(40)	1,394
Other income (expense):
Interest expense		(356)	(15)	(220)	(591)
Share of earnings (losses) of affiliates, net		29	78	(3)	104
Unrealized gain/(loss) on inter-group interest		—	(15)	15	—
Realized and unrealized gains (losses) on financial instruments, net		(16)	—	(72)	(88)
Other, net		(11)	3	16	8
		(354)	51	(264)	(567)
Earnings (loss) before income taxes		1,193	(62)	(304)	827
Income tax (expense) benefit (note 3)		466	36	561	1,063
Net earnings (loss)		1,659	(26)	257	1,890
Less net earnings (loss) attributable to the noncontrolling interests		535	(1)	2	536
Net earnings (loss) attributable to Liberty stockholders	$	1,124	(25)	255	1,354

STATEMENT OF OPERATIONS INFORMATION

December 31, 2016

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	4,194	—	—	4,194
Other revenue		820	262	—	1,082
Total revenue		5,014	262	—	5,276
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		1,109	—	—	1,109
Programming and content		354	—	—	354
Customer service and billing		387	—	—	387
Other		144	—	—	144
Subscriber acquisition costs		513	—	—	513
Other operating expenses		82	224	—	306
Selling, general and administrative		761	67	58	886
Legal settlement, net		—	—	(511)	(511)
Depreciation and amortization		312	32	10	354
		3,662	323	(443)	3,542
Operating income (loss)		1,352	(61)	443	1,734
Other income (expense):
Interest expense		(342)	(1)	(19)	(362)
Share of earnings (losses) of affiliates, net		13	9	(8)	14
Unrealized gain/(loss) on inter-group interest		—	(27)	27	—
Realized and unrealized gains (losses) on financial instruments, net		—	1	36	37
Other, net		(25)	—	21	(4)
		(354)	(18)	57	(315)
Earnings (loss) before income taxes		998	(79)	500	1,419
Income tax (expense) benefit (note 3)		(341)	17	(171)	(495)
Net earnings (loss)		657	(62)	329	924
Less net earnings (loss) attributable to the noncontrolling interests		244	—	—	244
Net earnings (loss) attributable to Liberty stockholders	$	413	(62)	329	680

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)	$	1,004	11	(150)	865
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		369	76	460	905
Stock-based compensation		156	11	25	192
Share of (earnings) loss of affiliates, net		11	(12)	(17)	(18)
Unrealized (gains) losses on intergroup interest, net		—	24	(24)	—
Realized and unrealized (gains) losses on financial instruments, net		1	2	(43)	(40)
Noncash interest expense		(8)	5	2	(1)
Losses (gains) on dilution of investment in affiliate		—	—	1	1
Loss on early extinguishment of debt		—	—	1	1
Deferred income tax expense (benefit)		231	(1)	(63)	167
Intergroup tax allocation		22	(14)	(8)	—
Intergroup tax (payments) receipts		(20)	35	(15)	—
Other charges (credits), net		2	(20)	1	(17)
Changes in operating assets and liabilities
Current and other assets		(4)	8	(35)	(31)
Payables and other liabilities		21	(22)	133	132
Net cash provided (used) by operating activities		1,785	103	268	2,156
Cash flows from investing activities:
Cash proceeds from dispositions of investments		—	155	244	399
Investments in equity method affiliates and debt and equity securities		(405)	—	(9)	(414)
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities		14	—	—	14
Capital expended for property and equipment		(356)	(33)	(14)	(403)
Other investing activities, net		(9)	37	6	34
Net cash provided (used) by investing activities		(756)	159	227	(370)
Cash flows from financing activities:
Borrowings of debt		2,795	123	699	3,617
Repayments of debt		(2,431)	(317)	(1,309)	(4,057)
Series C Liberty SiriusXM stock repurchases		(466)	—	—	(466)
Subsidiary shares repurchased by subsidiary		(1,314)	—	—	(1,314)
Cash dividends paid by subsidiary		(59)	—	—	(59)
Taxes paid in lieu of shares issued for stock-based compensation		(127)	—	(3)	(130)
Other financing activities, net		50	(18)	(3)	29
Net cash provided (used) by financing activities		(1,552)	(212)	(616)	(2,380)
Effect of foreign exchange rates on cash, cash equivalents and restricted cash		—	—	(1)	(1)
Net increase (decrease) in cash, cash equivalents and restricted cash		(523)	50	(122)	(595)
Cash, cash equivalents and restricted cash at beginning of period		625	140	282	1,047
Cash, cash equivalents and restricted cash at end of period	$	102	190	160	452

STATEMENT OF CASH FLOWS INFORMATION

December 31, 2017

(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)	$	1,659	(26)	257	1,890
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		352	67	405	824
Stock-based compensation		150	48	32	230
Share of (earnings) loss of affiliates, net		(29)	(78)	3	(104)
Unrealized (gains) losses on intergroup interest, net		—	15	(15)	—
Realized and unrealized (gains) losses on financial instruments, net		16	—	72	88
Noncash interest expense		7	3	6	16
Losses (gains) on dilution of investment in affiliate		—	—	(3)	(3)
Loss on early extinguishment of debt		35	5	8	48
Deferred income tax expense (benefit)		(492)	2	(574)	(1,064)
Intergroup tax allocation		(6)	(39)	45	—
Intergroup tax (payments) receipts		4	15	(19)	—
Other charges (credits), net		(4)	18	(10)	4
Changes in operating assets and liabilities
Current and other assets		30	(57)	77	50
Payables and other liabilities		127	(15)	(359)	(247)
Net cash provided (used) by operating activities		1,849	(42)	(75)	1,732
Cash flows from investing activities:
Cash proceeds from dispositions of investments		—	5	16	21
Net cash paid for the acquisition of Formula 1		—	—	(1,647)	(1,647)
Investments in equity method affiliates and debt and equity securities		(851)	(2)	(9)	(862)
Capital expended for property and equipment		(288)	(219)	(10)	(517)
Other investing activities, net		(115)	(5)	(12)	(132)
Net cash provided (used) by investing activities		(1,254)	(221)	(1,662)	(3,137)
Cash flows from financing activities:
Borrowings of debt		4,553	544	1,600	6,697
Repayments of debt		(3,216)	(218)	(1,673)	(5,107)
Proceeds from issuance of Series C Liberty Formula One common stock		—	—	1,938	1,938
Subsidiary shares repurchased by subsidiary		(1,409)	—	—	(1,409)
Cash dividends paid by subsidiary		(60)	—	—	(60)
Taxes paid in lieu of shares issued for stock-based compensation		(100)	(30)	(5)	(135)
Other financing activities, net		(35)	—	(13)	(48)
Net cash provided (used) by financing activities		(267)	296	1,847	1,876
Effect of foreign exchange rates on cash, cash equivalents and restricted cash		—	—	4	4
Net increase (decrease) in cash, cash equivalents and restricted cash		328	33	114	475
Cash, cash equivalents and restricted cash at beginning of period		297	107	168	572
Cash, cash equivalents and restricted cash at end of period	$	625	140	282	1,047

STATEMENT OF CASH FLOWS INFORMATION

December 31, 2016

(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)	$	657	(62)	329	924
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		312	32	10	354
Stock-based compensation		128	9	13	150
Share of (earnings) loss of affiliates, net		(13)	(9)	8	(14)
Unrealized (gains) losses on intergroup interest, net		—	27	(27)	—
Realized and unrealized (gains) losses on financial instruments, net		—	(1)	(36)	(37)
Noncash interest expense		6	5	—	11
Loss on early extinguishment of debt		24	—	—	24
Deferred income tax expense (benefit)		332	1	94	427
Intergroup tax allocation		(13)	(19)	32	—
Intergroup tax (payments) receipts		7	7	(14)	—
Other charges (credits), net		21	11	(2)	30
Changes in operating assets and liabilities
Current and other assets		59	(17)	(17)	25
Payables and other liabilities		184	105	(12)	277
Net cash provided (used) by operating activities		1,704	89	378	2,171
Cash flows from investing activities:
Cash proceeds from dispositions of investments		—	—	62	62
Investments in equity method affiliates and debt and equity securities		—	(20)	(764)	(784)
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities		—	—	48	48
Capital expended for property and equipment		(206)	(360)	(2)	(568)
Purchases of short term investments and other marketable securities		—	—	(258)	(258)
Sales of short term investments and other marketable securities		—	—	273	273
Other investing activities, net		(4)	(33)	—	(37)
Net cash provided (used) by investing activities		(210)	(413)	(641)	(1,264)
Cash flows from financing activities:
Borrowings of debt		1,847	460	438	2,745
Repayments of debt		(1,471)	(276)	(2)	(1,749)
Intergroup (payments) receipts		58	16	(74)	—
Subsidiary shares repurchased by subsidiary		(1,674)	—	—	(1,674)
Braves Rights Offering		—	203	—	203
Cash dividends paid by subsidiary		(16)	—	—	(16)
Taxes paid in lieu of shares issued for stock-based compensation		(47)	—	(11)	(58)
Other financing activities, net		(16)	15	4	3
Net cash provided (used) by financing activities		(1,319)	418	355	(546)
Net increase (decrease) in cash, cash equivalents and restricted cash		175	94	92	361
Cash, cash equivalents and restricted cash at beginning of period		122	13	76	211
Cash, cash equivalents and restricted cash at end of period	$	297	107	168	572

Notes to Attributed Financial Information (Continued)

(unaudited)

(1)

As discussed above and in note 2 the accompanying consolidated financial statements, on April 15, 2016 Liberty completed a recapitalization 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”). Upon completion of the Second Closing of the acquisition of Formula 1 on January 23, 2017, as discussed below, 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, 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”), 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.

The Liberty SiriusXM Group is comprised of our consolidated subsidiary, SIRIUS XM, corporate cash, investments in debt securities, Liberty’s 2.125% Exchangeable Senior Debentures and a margin loan obligation incurred by a wholly-owned special purpose subsidiary of Liberty. On February 1, 2019, SIRIUS XM acquired Pandora Media, Inc. (“Pandora”). See note 7 to the accompanying consolidated financial statements for information related to SIRIUS XM’s acquisition of Pandora. As of December 31, 2018, the Liberty SiriusXM Group has cash and cash equivalents of approximately $91 million, which includes $54 million of subsidiary cash.

The Braves Group is 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 cash. As of December 31, 2018, the Braves Group has cash and cash equivalents of approximately $107 million, which includes $40 million of subsidiary cash. Additionally, as discussed below, the Formula One Group retains an intergroup interest in the Braves Group. See note 2 to the accompanying consolidated financial statements for information regarding the Series C Liberty Braves common stock rights offering.

The Formula One Group is 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, 2018, Liberty’s interests in Formula 1 and Live Nation, an intergroup interest in the Braves Group as well as Liberty’s 1.375% Cash Convertible Notes due 2023 and related financial instruments, Liberty’s 1% Cash Convertible Notes due 2023, Liberty’s 2.25% Exchangeable Senior Debentures due 2046 and Liberty’s 2.25% Exchangeable Senior Debentures due 2048. On September 7, 2016 Liberty, through its indirect wholly owned subsidiary Liberty GR Cayman Acquisition Company, entered into two definitive stock purchase agreements relating to the acquisition of Delta Topco Limited (“Delta Topco”), the parent company of Formula 1, a global motorsports business. The transactions contemplated by the first purchase agreement were completed on September 7, 2016 and provided for the acquisition of slightly less than a 20% minority stake in Formula 1 on an undiluted basis. On October 27, 2016, under the terms of the first purchase agreement, Liberty acquired an additional incremental equity interest of Delta Topco, maintaining Liberty’s investment in Delta Topco on an undiluted basis and increasing slightly to 19.1% on a fully diluted basis. Liberty’s interest in Delta Topco and by extension Formula 1 is attributed to the Formula One Group. Liberty acquired 100% of the fully diluted equity interests of Delta Topco, other than a nominal number of shares held by certain Formula 1 teams, in a closing under the second purchase agreement (and following the unwind of the first purchase agreement) on January 23, 2017 (the “Second Closing”). Liberty’s acquired interest in Formula 1, along with existing Formula 1 cash and debt (which is non-recourse to Liberty), was attributed to the Formula One Group upon completion

Notes to Attributed Financial Information (Continued)

(unaudited)

of the Second Closing. As of December 31, 2018, the Formula One Group has cash and cash equivalents of approximately $160 million, which includes $30 million of subsidiary cash.

As part of the Recapitalization, the Formula One Group initially held a 20% intergroup interest in the Braves Group. As a result of the rights offering, the number of notional shares underlying the intergroup interest was adjusted to 9,084,940, representing a 15.1% intergroup interest in the Braves Group as of December 31, 2018. The intergroup interest is a quasi-equity interest which is not represented by outstanding shares of common stock; rather, the Formula One Group has an attributed value in the Braves Group which is generally stated in terms of a number of shares of stock issuable to the Formula One Group with respect to its interest in the Braves Group. Each reporting period, the notional shares representing the intergroup interest are marked to fair value. The change in fair value is recorded in the Unrealized gain (loss) on intergroup interest line item in the unaudited attributed consolidated statements of operations. The Formula One Group’s intergroup interest is reflected in the Investment in intergroup interest line item, and the Braves Group liability for the intergroup interest is reflected in the Redeemable intergroup interest 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 interest. Appropriate eliminating entries are recorded in the Company’s consolidated financial statements.

As the notional shares underlying the intergroup interest 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. However, Liberty has assumed that the notional shares (if and when issued) would be comprised of Series C Liberty Braves common stock in order to not dilute voting percentages. Therefore, the market price of Series C Liberty Braves common stock is used for the quarterly mark-to-market adjustment through the unaudited attributed consolidated statements of operations.

The intergroup interest will remain outstanding until the redemption of the outstanding interest, at the discretion of the Company’s board of directors, through transfer of securities, cash and/or other assets from the Braves Group to the Formula One Group.

For information relating to investments in available for sale securities and other cost investments, investments in affiliates accounted for using the equity method and debt, see notes 7, 8 and 10, 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 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. Following the Recapitalization, 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.

Notes to Attributed Financial Information (Continued)

(unaudited)

Liberty SiriusXM Group

Income tax benefit (expense) consists of:


	Years ended December 31,
	2018		2017	2016
	amounts in millions
Current:
Federal	$	(22)	4	12
State and local		12	(30)	(21)
Foreign		—	—	—
		(10)	(26)	(9)
Deferred:
Federal		(235)	511	(302)
State and local		4	(19)	(30)
Foreign		—	—	—
		(231)	492	(332)
Income tax benefit (expense)	$	(241)	466	(341)

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 21% for the year ended December 31, 2018 and 35% for both of the years ended December 31, 2017 and 2016 as a result of the following:


	Years ended December 31,
	2018		2017	2016
	amounts in millions
Computed expected tax benefit (expense)	$	(262)	(418)	(349)
State and local income taxes, net of federal income taxes		22	(40)	(37)
Foreign income taxes, net of federal income taxes		(1)	—	—
Dividends received deductions		(3)	36	9
Taxable dividends not recognized for book purposes		(25)	(45)	(11)
Federal tax credits		27	22	67
Change in valuation allowance affecting tax expense		(14)	(4)	1
Change in tax rate due to Tax Act		(8)	888	—
Deductible stock-based compensation		37	35	(7)
Other, net		(14)	(8)	(14)
Income tax benefit (expense)	$	(241)	466	(341)

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,
	2018		2017
	amounts in millions
Deferred tax assets:
Tax loss and credit carryforwards	$	951	689
Accrued stock compensation		84	78
Other accrued liabilities		—	52
Deferred revenue		523	500
Other future deductible amounts		10	10
Deferred tax assets		1,568	1,329
Valuation allowance		(67)	(53)
Net deferred tax assets		1,501	1,276
Deferred tax liabilities:
Investments		22	23
Fixed assets		226	198
Intangible assets		2,484	2,494
Discount on debt		17	8
Other future taxable amounts		425	—
Deferred tax liabilities		3,174	2,723
Net deferred tax liabilities	$	1,673	1,447

Braves Group

Income tax benefit (expense) consists of:


	Years ended December 31,
	2018		2017	2016
	amounts in millions
Current:
Federal	$	14	36	18
State and local		—	2	—
Foreign		—	—	—
		14	38	18
Deferred:
Federal		9	3	(1)
State and local		(8)	(5)	—
Foreign		—	—	—
		1	(2)	(1)
Income tax benefit (expense)	$	15	36	17

Notes to Attributed Financial Information (Continued)

(unaudited)


	Years ended December 31,
	2018		2017	2016
	amounts in millions
Computed expected tax benefit (expense)	$	1	22	27
State and local income taxes, net of federal income taxes		(4)	3	2
Federal tax credits		3	—	—
Change in valuation allowance affecting tax expense		5	(6)	(2)
Change in tax rate due to Tax Act		11	25	—
Other, net		(1)	(8)	(10)
Income tax benefit (expense)	$	15	36	17

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,
	2018		2017
	amounts in millions
Deferred tax assets:
Tax loss and credit carryforwards	$	3	8
Accrued stock compensation		2	2
Other accrued liabilities		102	114
Other future deductible amounts		12	13
Deferred tax assets		119	137
Valuation allowance		(3)	(8)
Net deferred tax assets		116	129
Deferred tax liabilities:
Investments		7	19
Fixed assets		131	126
Intangible assets		38	46
Other future taxable amounts		9	—
Deferred tax liabilities		185	191
Net deferred tax liabilities	$	69	62

Notes to Attributed Financial Information (Continued)

(unaudited)

Liberty Formula One Group

Income tax benefit (expense) consists of:


	Years ended December 31,
	2018		2017	2016
	amounts in millions
Current:
Federal	$	(6)	(2)	(69)
State and local		1	(2)	(8)
Foreign		(8)	(9)	—
		(13)	(13)	(77)
Deferred:
Federal		(2)	64	(85)
State and local		2	3	(9)
Foreign		63	507	—
		63	574	(94)
Income tax benefit (expense)	$	50	561	(171)


	Years ended December 31,
	2018		2017	2016
	amounts in millions
Computed expected tax benefit (expense)	$	42	107	(175)
State and local income taxes, net of federal income taxes		—	—	(11)
Foreign income taxes, net of federal income taxes		23	88	—
Dividends received deductions		1	2	2
Change in valuation allowance affecting tax expense		(53)	222	—
Change in tax rate due to Tax Act		(11)	16	—
Settlements with tax authorities		43	253	—
Deductible stock-based compensation		1	5	8
Income tax reserves		—	(22)	—
Non-deductible / Non-taxable interest		—	(60)	—
Write-off of tax attributes		—	(42)	—
Other, net		4	(8)	5
Income tax benefit (expense)	$	50	561	(171)

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,
	2018		2017
	amounts in millions
Deferred tax assets:
Tax loss and credit carryforwards	$	401	320
Accrued stock compensation		11	8
Other accrued liabilities		9	9
Deferred revenue		—	2
Discount on debt		—	34
Other future deductible amounts		3	1
Deferred tax assets		424	374
Valuation allowance		(104)	(51)
Net deferred tax assets		320	323
Deferred tax liabilities:
Investments		—	68
Fixed assets		2	2
Intangible Assets		168	220
Discount on debt		59	—
Other		—	2
Deferred tax liabilities		229	292
Net deferred tax (assets) liabilities	$	(91)	(31)

(4)

There was an intergroup arrangement regarding AT&T Inc. (“AT&T”) shares held by the Formula One Group that were pledged as collateral pursuant to a loan at the Braves Group. Following the Recapitalization, the Company’s board of directors approved an amount payable by the Braves Group to pay the Formula One Group in order to reflect the credit support provided by the assets of the Formula One Group used as collateral for the credit facility obligations of the Braves Group. The amount of this obligation was determined and paid quarterly in arrears, based on the average share price of AT&T (previously Time Warner, Inc.) common stock each period. This inter-group arrangement was recorded through the Intergroup payable (receivable) line item in the consolidated attributed balance sheets and through the Interest expense line item in the consolidated attributed statements of operations and eliminated in consolidation. There were no AT&T shares pledged as collateral as of December 31, 2018.

The intergroup balances as December 31, 2018 and December 31, 2017 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.

Notes to Attributed Financial Information (Continued)

(unaudited)

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.