Annual report pursuant to Section 13 and 15(d)

Information About Liberty's Operating Segments

v2.4.0.8
Information About Liberty's Operating Segments
 12 Months Ended
Dec. 31, 2013
Information About Liberty's Operating Segments  
Information About Liberty's Operating Segments
Information About Liberty's Operating Segments
The Company, through its ownership interests in subsidiaries and other companies, is primarily engaged in the media, communications and entertainment industries. The Company identifies its reportable segments as (A) those consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of the Company's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation, as discussed below.
The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, the Company reviews nonfinancial measures such as subscriber growth and penetration.
The Company defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its businesses, including each business's ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
For the year ended December 31, 2013, the Company has identified SIRIUS XM as its reportable segment. SIRIUS XM is a consolidated subsidiary that provides a subscription based satellite radio service. SIRIUS XM broadcasts music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through its two proprietary satellite radio systems - the Sirius system and the XM system. Subscribers can also receive music and other channels, plus features such as SiriusXM On Demand and MySXM, over the Internet, including through applications for mobile devices.
ANLBC is no longer considered a reportable segment due to the overall size of the business in comparison to the consolidated results of Liberty. ANLBC in previous years met the quantitative thresholds because of the size of the business as compared to the consolidated results prior to consolidation of SIRIUS XM. We have reflected the results of ANLBC in corporate and other on a comparative basis for all periods presented in the tables below.
The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated subsidiaries are the same as those described in the Company's summary of significant policies.
Performance Measures
 
Years ended December 31,
 
2013
 
2012
 
2011
 
Revenue
 
Adjusted
OIBDA
 
Revenue
 
Adjusted
OIBDA
 
Revenue
 
Adjusted
OIBDA
 
amounts in millions
SIRIUS XM
$
3,625

 
1,289

 
NA

 
NA

 
NA

 
NA

Corporate and other
377

 
33

 
368

 
8

 
1,409

 
609

Total
$
4,002

 
1,322

 
368

 
8

 
1,409

 
609


Other Information
 
December 31, 2013
 
December 31, 2012
 
Total
assets
 
Investments
in affiliates
 
Capital
expenditures
 
Total
assets
 
Investments
in affiliates
 
Capital
expenditures
 
amounts in millions
SIRIUS XM
$
28,203

 
273

 
200

 
NA

 
NA

 
NA

Corporate and other
6,339

 
3,026

 
7

 
8,325

 
3,341

 
16

Total
$
34,542

 
3,299

 
207

 
8,325

 
3,341

 
16


The following table provides a reconciliation of segment Adjusted OIBDA to earnings (loss) from continuing operations before income taxes:
 
Years ended December 31,
 
2013
 
2012
 
2011
 
 
 
 
Consolidated segment Adjusted OIBDA
$
1,322

 
8

 
609

Stock-based compensation
(193
)
 
(46
)
 
(25
)
Depreciation and amortization
(315
)
 
(42
)
 
(53
)
Interest expense
(132
)
 
(7
)
 
(16
)
Dividend and interest income
48

 
76

 
77

Share of earnings (losses) of affiliates, net
(32
)
 
1,346

 
87

Realized and unrealized gains (losses) on financial instruments, net
295

 
230

 
70

Gains (losses) on dispositions, net
7,978

 
22

 
1

Other, net
(115
)
 
42

 
8

Earnings (loss) from continuing operations before income taxes
$
8,856

 
1,629

 
758