Â鶹×îгöÆ·

Annual report pursuant to Section 13 and 15(d)

Information About Â鶹×îгöÆ·'s Operating Segments

v2.4.0.6
Information About Â鶹×îгöÆ·'s Operating Segments
 12 Months Ended
Dec. 31, 2012
Information About Â鶹×îгöÆ·'s Operating Segments Ìý
Information About Â鶹×îгöÆ·'s Operating Segments
Information About Â鶹×îгöÆ·'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)Ìýthose consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B)Ìýthose 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 DecemberÌý31, 2012, the Company has identified the following consolidated subsidiaries and equity method affilates as its reportable segments:
•
Starz,ÌýLLC—consolidated subsidiary that provides premium subscription video programming to United States multichannel video distributors, including cable operators, satellite television providers and telecommunications companies. Starz also develops, produces and acquires entertainment content and distributes this content to consumers in a wide variety of formats in the United States and throughout the world.
•
ANLBC—consolidated subsidiary that owns and operates the Atlanta Braves Major League Baseball franchise.
•
SIRIUS XM—a 49% owned equity method affiliate that provides a subscription based satellite radio service. SIRIUS XM broadcasts to subscribers over approximately 130 digital-quality channels, including more than 60 channels of 100% commercial-free music, plus exclusive channels of sports, news, talk, entertainment, traffic, weather and data through its two proprietary satellite radio systems -- the Sirius system and the XM system.
During the current year it was determined that SIRIUS XM, due to the change in the investment balance during the year as a result of acquisitions of common stock throughout the period and the significant earnings recognized during the year, was a separate reportable segment. Additionally, TruePosition is no longer considered a reportable segment due to the overall size of the business in comparison to the consolidated results of Â鶹×îгöÆ·. TruePosition in previous years met the quantitative thresholds because of accounting related to certain deferred amounts. We have reflected the results of SIRIUS XM (presented separately) and TruePosition (included 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
Ìý
Years ended December 31,
Ìý
2012
Ìý
2011
Ìý
2010
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
amounts in millions
Ìý
Ìý
Ìý
Ìý
Starz,ÌýLLC
$
1,631

Ìý
445

Ìý
1,615

Ìý
449

Ìý
1,626

Ìý
343

ANLBC
225

Ìý
22

Ìý
208

Ìý
(6
)
Ìý
203

Ìý
6

SIRIUS XM
3,402

Ìý
1,202

Ìý
3,015

Ìý
997

Ìý
2,817

Ìý
863

Corporate and other
143

Ìý
(17
)
Ìý
1,201

Ìý
617

Ìý
221

Ìý
(25
)
Total
5,401

Ìý
1,652

Ìý
6,039

Ìý
2,057

Ìý
4,867

Ìý
1,187

Eliminate equity method affiliate
(3,402
)
Ìý
(1,202
)
Ìý
(3,015
)
Ìý
(997
)
Ìý
(2,817
)
Ìý
(863
)
Consolidated Â鶹×îгöÆ·
$
1,999

Ìý
450

Ìý
3,024

Ìý
1,060

Ìý
2,050

Ìý
324


Other Information
Ìý
DecemberÌý31, 2012
Ìý
DecemberÌý31, 2011
Ìý
Total
assets
Ìý
Investments
in affiliates
Ìý
Capital
expenditures
Ìý
Total
assets
Ìý
Investments
in affiliates
Ìý
Capital
expenditures
Ìý
amounts in millions
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Starz,ÌýLLC
$
2,173

Ìý
—

Ìý
16

Ìý
$
2,630

Ìý
$
—

Ìý
$
8

ANLBC
526

Ìý
32

Ìý
2

Ìý
545

Ìý
31

Ìý
1

SIRIUS XM
9,055

Ìý
—

Ìý
97

Ìý
7,496

Ìý
—

Ìý
137

Corporate and other
5,626

Ìý
3,309

Ìý
13

Ìý
4,544

Ìý
532

Ìý
5

Total
$
17,380

Ìý
3,341

Ìý
128

Ìý
$
15,215

Ìý
$
563

Ìý
$
151

Eliminate equity method affiliate
$
(9,055
)
Ìý
—

Ìý
(97
)
Ìý
$
(7,496
)
Ìý
$
—

Ìý
$
(137
)
Consolidated Â鶹×îгöÆ·
$
8,325

Ìý
3,341

Ìý
31

Ìý
$
7,719

Ìý
$
563

Ìý
$
14



The following table provides a reconciliation of segment Adjusted OIBDA to earnings (loss) from continuing operations before income taxes:
Ìý
Years ended December 31,
Ìý
2012
Ìý
2011
Ìý
2010
Ìý
Ìý
Ìý
Ìý
Consolidated segment Adjusted OIBDA
$
450

Ìý
1,060

Ìý
324

Stock-based compensation
(66
)
Ìý
(32
)
Ìý
(83
)
Gain (loss) on legal settlement
—

Ìý
(2
)
Ìý
48

Depreciation and amortization
(58
)
Ìý
(69
)
Ìý
(94
)
Interest expense
(33
)
Ìý
(21
)
Ìý
(65
)
Dividend and interest income
78

Ìý
79

Ìý
88

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

Ìý
87

Ìý
(98
)
Realized and unrealized gains (losses) on financial instruments, net
232

Ìý
68

Ìý
260

Gains (losses) on dispositions, net
22

Ìý
(10
)
Ìý
36

Other, net
41

Ìý
5

Ìý
10

Earnings (loss) from continuing operations before income taxes
$
2,012

Ìý
1,165

Ìý
426