Investments In Affiliates Accounted For Using The Equity Method

6 Months Ended

Jun. 30, 2013

Investments In Affiliates Accounted For Using The Equity Method

Investments In Affiliates Accounted For Using The Equity Method

Investments in Affiliates Accounted for Using the Equity Method

Liberty has various investments accounted for using the equity method. The following table includes Liberty's carrying amount, fair value, and percentage ownership of the more significant investments in affiliates at June 30, 2013 and the carrying amount at December 31, 2012:

	June 30, 2013						December 31, 2012
	Percentage ownership		Fair value (Level 1)		Carrying amount		Carrying amount
			dollars in millions
Interactive Group
HSN, Inc.	37	%	$	1,075	$	270	242
Other	various		NA		52		62
Total Interactive Group					322		304
Ventures Group
Expedia, Inc. (1)	17	%	1,388		438		431
Other	various		NA		123		116
Total Ventures Group					561		547
Consolidated Liberty					$	883	851

(1) Liberty's 22% owned consolidated subsidiary TripAdvisor, Inc. earned revenue of approximately $54 million and $115 million for the three and six months ended June 30, 2013, respectively, and $56 million and $107 million for the three and six months ended June 30, 2012, respectively, from Expedia, Inc. (TripAdvisor's former parent).

The following table presents Liberty's share of earnings (losses) of affiliates:

	Three months ended June 30,					Six months ended June 30,
	2013			2012		2013		2012
	amounts in millions
Interactive Group
HSN, Inc.	$	11		9		31		24
Other	(7		)	(2	)	(11	)	(4	)
Total Interactive Group	4			7		20		20
Ventures Group
Expedia, Inc.	10			26		(10	)	24
TripAdvisor, Inc. (1)	NA			12		NA		23
Other	(7		)	(10	)	(14	)	(21	)
Total Ventures Group	3			28		(24	)	26
Consolidated Liberty	$	7		35		(4	)	46

(1) On December 11, 2012, we acquired approximately 4.8 million additional shares of common stock of TripAdvisor (an additional 4% equity ownership interest), for $300 million, and obtained voting control of TripAdvisor. Following the date of this transaction, TripAdvisor is accounted for as a consolidated subsidiary. See note 1 for additional details of this transaction.

Expedia

Summarized unaudited financial information for Expedia is as follows:

Expedia Consolidated Balance Sheets

	June 30, 2013		December 31, 2012
	amounts in millions
Current assets	$	3,264	2,615
Property and equipment, net	441		409
Goodwill	3,643		3,016
Intangible assets, net	1,145		821
Other assets	251		224
Total assets	$	8,744	7,085
Current liabilities	$	4,211	2,982
Deferred income taxes	461		324
Long-term debt	1,249		1,249
Other liabilities	127		128
Redeemable noncontrolling interests	358		13
Noncontrolling interest	110		109
Equity	2,228		2,280
Total liabilities and equity	$	8,744	7,085

Expedia Consolidated Statements of Operations

	Three months ended June 30,					Six months ended June 30,
	2013			2012		2013		2012
	amounts in millions
Revenue	$	1,205		1,040		2,217		$	1,856
Cost of revenue	(262		)	(230	)	(513	)	(430		)
Gross profit	943			810		1,704		1,426
Selling, general and administrative expenses	(824		)	(644	)	(1,550	)	(1,208		)
Amortization	(18		)	(9	)	(31	)	(12		)
Restructuring charges and other	(6		)	(3	)	(134	)	(3		)
Operating income (loss)	95			154		(11	)	203
Interest expense	(21		)	(22	)	(43	)	(43		)
Other income (expense), net	14			3		23		2
Income tax (expense) benefit	(25		)	(29	)	(13	)	(34		)
Income (loss) from continuing operations	63			106		(44	)	128
Earnings (loss) from discontinued operations	—			—		—		(24		)
Net earnings (loss)	63			106		(44	)	104
Less net earnings (loss) attributable to noncontrolling interests	8			(1	)	11		(2		)
Net earnings (loss) attributable to Expedia, Inc. shareholders	$	71		105		(33	)	$	102