| Information About Liberty's Operating Segments |
(16) Information About Liberty’s Operating Segments
The Company, through its ownership interests in subsidiaries and other companies, is primarily engaged in the motorsport and live 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 (losses) represent 10% or more of the Company’s annual pre-tax earnings (loss).
Liberty’s chief operating decision maker, the chief executive officer, evaluates performance and makes decisions about allocating resources to the Company’s reportable segments based on financial measures such as revenue, operating
expenses (including team payments and other cost of revenue), selling, general and administrative expenses, and Adjusted OIBDA.
For segment reporting purposes, the Company defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses excluding all stock-based compensation, separately reported litigation settlements, Concorde incentive payments and restructuring, acquisition and impairment charges. The Company believes this measure is an important indicator of the operational strength and performance of its businesses, by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. 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, Concorde incentive payments and restructuring, acquisition 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.
The Company has identified the following subsidiaries as its reportable segments:
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Formula 1 is a global motorsports business that holds exclusive commercial rights with respect to the F1 Championship, an annual, approximately nine-month long, motor race-based competition in which teams compete for the Constructors’ Championship and drivers compete for the Drivers’ Championship. The F1 Championship takes place on various circuits with a varying number of Formula 1 Events taking place in different countries around the world each season. Formula 1 is responsible for the commercial exploitation and development of the F1 Championship as well as various aspects of its management and administration.
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MotoGP is a global motorsports business that holds exclusive commercial rights with respect to the MotoGP Championship and other motorcycle racing championships. The MotoGP Championship is comprised of a varying number of events taking place in different countries around the world each season. |
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, differing revenue sources and marketing strategies. The significant accounting policies of the segments are the same as those described in the Company’s summary of significant policies.
Performance Measures
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Year ended December 31, 2025 |
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Reportable |
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Corporate and |
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Formula One |
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MotoGP |
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segments total |
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Other |
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Eliminations |
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Total |
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amounts in millions |
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Revenue |
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$ |
3,873 |
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325 |
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4,198 |
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414 |
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(130) |
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4,482 |
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Operating expenses |
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Team payments, excluding Concorde incentive payments |
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(1,400) |
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— |
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(1,400) |
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— |
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— |
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(1,400) |
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Other cost of revenue |
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(1,181) |
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(162) |
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(1,343) |
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(308) |
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130 |
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(1,521) |
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Selling, general and administrative, excluding stock-based compensation |
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(346) |
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(46) |
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(392) |
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(101) |
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— |
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(493) |
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Adjusted OIBDA |
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$ |
946 |
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117 |
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1,063 |
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5 |
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— |
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1,068 |
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Year ended December 31, 2024 |
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Corporate and |
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Formula One |
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Other |
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Eliminations |
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Total |
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amounts in millions |
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Revenue |
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$ |
3,411 |
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373 |
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(131) |
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3,653 |
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Operating expenses |
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Team payments |
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(1,266) |
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— |
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— |
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(1,266) |
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Other cost of revenue |
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(1,066) |
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(194) |
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38 |
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(1,222) |
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Selling, general and administrative, excluding stock-based compensation |
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(288) |
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(196) |
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93 |
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(391) |
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Adjusted OIBDA |
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$ |
791 |
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(17) |
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— |
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774 |
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Year ended December 31, 2023 |
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Corporate and |
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Formula One |
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Other |
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Eliminations |
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Total |
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amounts in millions |
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Revenue |
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$ |
3,222 |
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366 |
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(16) |
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3,572 |
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Operating expenses |
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Team payments |
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(1,215) |
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— |
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— |
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(1,215) |
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Other cost of revenue |
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(1,041) |
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— |
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16 |
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(1,025) |
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Selling, general and administrative, excluding stock-based compensation |
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(241) |
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(391) |
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— |
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(632) |
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Adjusted OIBDA |
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$ |
725 |
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(25) |
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— |
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700 |
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Total Assets
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December 31, |
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2025 |
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2024 |
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amounts in millions |
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Formula 1 |
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$ |
8,161 |
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9,159 |
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MotoGP |
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6,277 |
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— |
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Corporate and other |
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1,548 |
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2,833 |
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Elimination |
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(588) |
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18 |
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Assets of discontinued operations |
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— |
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991 |
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Total assets |
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$ |
15,398 |
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13,001 |
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The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) from continuing operations before income taxes:
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Years ended December 31, |
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2025 |
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2024 |
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2023 |
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amounts in millions |
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Adjusted OIBDA |
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$ |
1,068 |
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774 |
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700 |
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Stock-based compensation |
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(21) |
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(30) |
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(27) |
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Depreciation and amortization |
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(393) |
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(352) |
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(406) |
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Concorde incentive payments |
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(50) |
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— |
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— |
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Impairment and acquisition costs |
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(27) |
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(105) |
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(1) |
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Operating income (loss) |
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577 |
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287 |
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266 |
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Interest expense |
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(249) |
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(208) |
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(234) |
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Realized and unrealized gains (losses) on financial instruments, net |
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288 |
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(139) |
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44 |
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Unrealized gains (losses) on intergroup interests |
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— |
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— |
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(68) |
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Other, net |
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117 |
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60 |
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89 |
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Earnings (loss) from continuing operations before income taxes |
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$ |
733 |
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— |
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97 |
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Revenue by Geographic Area
Revenue by geographic area based on the country of domicile is as follows:
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Years ended December 31, |
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2025 |
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2024 |
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2023 |
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amounts in millions |
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United Kingdom |
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$ |
3,782 |
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3,318 |
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3,222 |
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United States |
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378 |
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335 |
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350 |
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Spain |
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310 |
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— |
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— |
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Other |
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12 |
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— |
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— |
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$ |
4,482 |
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3,653 |
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3,572 |
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Long-lived Assets by Geographic Area
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December 31, |
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2025 |
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2024 |
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amounts in millions |
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United States |
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$ |
691 |
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730 |
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United Kingdom |
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161 |
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80 |
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Spain |
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15 |
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— |
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Other |
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1 |
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— |
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$ |
868 |
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810 |
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