Liberty Media believes adjusted OIBDA is an important indicator of the operational strength and performance of its businesses, including each business’ 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. Because adjusted OIBDA is used as a measure of operating performance, Liberty Media views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that Liberty Media's management considers in assessing the results of operations and performance of its assets. Please see the attached schedules for applicable reconciliations.


The following table provides a reconciliation of adjusted OIBDA for Liberty Media to operating income calculated in accordance with GAAP for the three months ended March 31, 2011, June 30, 2011, September 30, 2011, December 31, 2011 and March 31, 2012, respectively.

(amounts in millions) 1Q11     2Q11     3Q11     4Q11     1Q12
Liberty Media
Adjusted OIBDA $ 484 124 129 323 110
Depreciation and amortization (21 ) (20 ) (15 ) (13 ) (13 )
Stock compensation expense (11 ) (10 ) (3 ) (8 ) (8 )
Gain (loss) on legal settlement   7       --       --       (9 )     --  
Operating Income $ 459       94       111       293       89  


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