Liberty Media Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Discontinued Operations

Discontinued Operations

12 Months Ended

Dec. 31, 2024

(2) Discontinued Operations

On September 9, 2024, Liberty completed the split-off of its wholly owned subsidiary, Liberty Sirius XM Holdings (the “Liberty Sirius XM Holdings Split-Off”). The Liberty Sirius XM Holdings Split-Off was accomplished through the redemption by the Company of each outstanding share of Liberty SiriusXM common stock in exchange for 0.8375 of a share of Liberty Sirius XM Holdings common stock, with cash paid in lieu of fractional shares. Liberty Sirius XM Holdings was comprised of the businesses, assets and liabilities attributed to the Liberty SiriusXM Group immediately prior to the Liberty Sirius XM Holdings Split-Off. The Liberty Sirius XM Holdings Split-Off was intended to be tax-free to holders of Liberty SiriusXM common stock (except with respect to cash received in lieu of fractional shares).

Following the Liberty Sirius XM Holdings Split-Off, on September 9, 2024, a wholly owned subsidiary of Liberty Sirius XM Holdings merged with and into Sirius XM Holdings, with Sirius XM Holdings surviving the merger as a wholly owned subsidiary of Liberty Sirius XM Holdings (the “Merger” and, together with the Liberty Sirius XM Holdings Split-Off, the “Transactions”). As a result of the Transactions, Liberty Sirius XM Holdings became an independent public company separate from Liberty.

As disclosed in note 1, Liberty Sirius XM Holdings is presented as a discontinued operation in the Company’s consolidated financial statements as the Liberty Sirius XM Holdings Split-Off represents a strategic shift that had a major effect on the Company’s operations and financial results.

The following table presents a reconciliation of the carrying amounts of the major classes of assets and liabilities of discontinued operations to the total assets and liabilities of discontinued operations as presented in the consolidated balance sheet.


	December 31, 2023
	amounts in millions
Assets
Current assets	$	1,361
Investments in affiliates, accounted for using the equity method		715
Property and equipment, net		1,245
Intangible assets not subject to amortization		25,051
Intangible assets subject to amortization, net		1,014
Other assets		515
Total assets	$	29,901

Liabilities
Accounts payable and accrued liabilities	$	1,536
Current portion of debt		1,074
Other current liabilities		1,266
Long-term debt		10,063
Deferred income tax liabilities		2,245
Other liabilities		526
Total liabilities	$	16,710

The following table provided details about the major classes of line items constituting earnings (loss) from discontinued operations, net of tax as presented in the consolidated statements of operations. Impairment, restructuring and acquisition costs for the year ended December 31, 2024, in the table below, includes a goodwill impairment loss of $2,819 million related to the Sirius XM Holdings reportable segment and $500 million impairment of Sirius XM Holding’s equity method investment in Sirius XM Canada Holdings, Inc.


	Years ended December 31,
	2024		2023	2022

	amounts in millions
Revenue	$	6,004	8,953	9,003
Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below)		2,852	4,209	4,130
Operating expense		461	681	637
Selling, general and administrative		1,030	1,534	1,638
Impairment, restructuring and acquisition costs		3,339	66	68
Depreciation and amortization		421	624	611
Litigation settlements, net of recoveries		—	31	—
		8,103	7,145	7,084
Operating income (loss)		(2,099)	1,808	1,919
Other income (expense):
Interest expense		(349)	(534)	(503)
Other, net		122	(64)	70
		(227)	(598)	(433)
Earnings (loss) from discontinued operations before income taxes		(2,326)	1,210	1,486
Income tax (expense) benefit		(86)	(224)	(366)
Net earnings (loss) from discontinued operations		(2,412)	986	1,120
Less net earnings (loss) from discontinued operations attributable to the noncontrolling interests		(410)	202	210
Net earnings (loss) from discontinued operations attributable to Liberty stockholders	$	(2,002)	784	910