Quarterly report pursuant to Section 13 or 15(d)

Investments In Affiliates Accounted For Using The Equity Method (Tables)

v2.3.0.15
Investments In Affiliates Accounted For Using The Equity Method (Tables)
 9 Months Ended
Sep. 30, 2011
Investments in Affiliates Accounted for Using the Equity Method [Line Items]  
Schedule Of Equity Ownership And Carrying Amount
Liberty has various investments accounted for using the equity method. The following table includes the Company's carrying amount and percentage ownership of the more significant investments in affiliates at September 30, 2011 and the carrying amount at December 31, 2010:
 
September 30, 2011
 
December 31, 2010
 
Percentage
ownership
 
Market
Value
 
Carrying
amount
 
Carrying
amount
 
 
 
dollar amounts in millions
Capital Group
 
 
 
 
 
 
 
SIRIUS XM
40
%
 
$
3,906

 
$
32

 
5

Live Nation(a)
21
%
 
$
314

 
376

 
—

 Other
various

 
N/A

 
99

 
86

 
 

 
 

 
$
507

 
91

Schedule Of Liberty's Share Of Earnings (Losses) Of Affiliates
The following table presents the Company's share of earnings (losses) of affiliates:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
Capital Group
 
 
 
 
 
 
 
SIRIUS XM
$
42

 
(51
)
 
34

 
(51
)
Live Nation(a)
1

 
—

 
(44
)
 
—

Other
10

 
(8
)
 
13

 
(19
)
 
$
53

 
(59
)
 
3

 
(70
)
___________________________

(a)
During June 2011, Liberty acquired an additional 5.5 million shares of Live Nation which increased our ownership percentage above 20% of the outstanding voting shares. Due to the presumption that an entity with an ownership percentage greater than 20% has significant influence and no other factors would rebut that presumption, the Company is accounting for the investment as an equity method affiliate. The Company has elected to record its share of earnings (loss) for Live Nation on a three-month lag due to timeliness considerations. Increases in ownership which result in a change to the equity method of accounting generally require retroactive recognition of an investment's share of earnings (loss) in prior periods. Due to the relative insignificance of our share of losses for Live Nation in previous periods, both quantitatively and qualitatively, the Company has recorded such amounts in the current year. Approximately $12 million of the losses recorded for the nine months ended September 30, 2011 relate to the prior year.
SIRIUS XM [Member]
  
Investments in Affiliates Accounted for Using the Equity Method [Line Items]  
SIRIUS XM Consolidated Balance Sheets
SIRIUS XM Consolidated Balance Sheet
 
June 30,
2011

 
December 31,
2010

 
amounts in millions
Current assets
$
965

 
992

Property and equipment, net
1,723

 
1,761

Intangible assets
2,602

 
2,633

Goodwill
1,835

 
1,835

Other assets
179

 
162

Total assets
$
7,304

 
7,383

Current liabilities
$
2,171

 
2,350

Deferred income taxes
927

 
915

Long-term debt
2,672

 
2,696

Other liabilities
1,039

 
1,214

Stockholders' equity
495

 
208

Total liabilities and equity
$
7,304

 
7,383

SIRIUS XM Consolidated Statement Of Operations
SIRIUS XM Consolidated Statement of Operations
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2011
 
2010
 
2011
 
2010
 
amounts in millions
 
amounts in millions
Revenue
$
744

 
700

 
$
1,468

 
$
1,364

Costs of services
(273
)
 
(266
)
 
(544
)
 
(527
)
Selling, general and administrative expenses
(231
)
 
(237
)
 
(452
)
 
(445
)
Restructuring, impairments and related costs
—

 
(2
)
 
—

 
(2
)
Depreciation and amortization
(67
)
 
(69
)
 
(135
)
 
(139
)
Operating income
173

 
126

 
337

 
251

Interest expense
(76
)
 
(77
)
 
(154
)
 
(155
)
Loss on extinguishment of debt
(1
)
 
(32
)
 
(7
)
 
(34
)
Other income (loss), net
80

 
—

 
80

 
(2
)
Income tax expense
(3
)
 
(2
)
 
(5
)
 
(3
)
Net income attributable to SIRIUS XM stockholders
$
173

 
15

 
$
251

 
$
57