Exhibit 99.1

LIBERTY INTERACTIVE REPORTS SECOND QUARTER 2012 FINANCIAL RESULTS
 

Englewood, Colorado, August 8, 2012 - Liberty Interactive Corporation (“Liberty Interactive”) (Nasdaq: LINTA, LINTB) today reported second quarter results. Highlights include(1):

Grew consolidated QVC revenue by 4% and adjusted OIBDA(2) by 5%
Received government approval and finalized our joint venture in China in July
Raised $500 million in 10-year senior secured notes with a coupon of 5.125%
QVC.com revenue as a percent of total US revenue increased to 39%
Operating income increased 7%
Holding annual stockholder meeting today to vote on creation of new Liberty Ventures tracking stock
Repurchased $257 million of Liberty Interactive stock from May 1, 2012 through June 29, 2012, after which we mailed our proxy statement

“QVC continues to produce solid results despite a challenging macroeconomic environment. We were pleased we received government approval in China and finalized our joint venture with China National Radio in July,” stated Greg Maffei, Liberty Interactive President and CEO. “We have a stockholder vote later today and expect our new Liberty Ventures tracking stock to begin trading on August 10. We continued our share repurchases reinvesting $257 million.”
 

1



Liberty Interactive's revenue increased 5% to $2.4 billion in the second quarter, adjusted OIBDA increased 1% to $455 million and operating income increased 1% to $290 million. The increase in revenue was due to favorable results at QVC and the eCommerce companies. The increase in adjusted OIBDA and operating income for the quarter was due to favorable results at QVC which were offset by diminished results at the eCommerce companies.

QVC
QVC's consolidated revenue increased 4% in the second quarter to $2.0 billion. During the same period, adjusted OIBDA increased 5% to $438 million and operating income increased 7% to $301 million.

“QVC's performance was driven by another strong quarter of eCommerce and mobile purchasing, a trend that continues to accelerate across our global markets,” said QVC President and CEO, Mike George.  “Our customers are embracing QVC's unique digital shopping experience, fueled by great values on distinctive products across each of our growing platforms.” 

QVC's U.S. revenue increased 4% to $1.3 billion in the second quarter, while gross product revenue increased 5% as a result of strength in beauty, electronics and apparel products. This was reduced to a 4% increase overall due to an increase in second quarter returns as a percent of gross product revenue of 117 basis points primarily due to increased return rates in apparel, health, beauty and jewelry due to the mix of products within those categories. Average selling price ("ASP") increased 5% from $52.02 to $54.84, while units sold remained flat compared to the prior year second quarter. In the same period, eCommerce revenue increased 15% to $498 million and grew to 39% from 35% as a percentage of total U.S. revenue. Adjusted OIBDA increased 3% to $315 million, with adjusted OIBDA margin(2) decreasing slightly due to lower product margins.

QVC's international revenue increased 4% in the second quarter to $694 million. The second quarter results included the negative impact of the strengthening of the U.S. Dollar against the Euro and U.K. Pound Sterling that was somewhat offset by the positive impact of the weakening of the U.S. Dollar against the Japanese Yen. International adjusted OIBDA increased 9% to $123 million and adjusted OIBDA margin increased 76 basis points in the second quarter.

QVC Japan's revenue grew13% in local currency in the second quarter primarily due to increased sales in home and apparel as well as the earthquake and related events experienced last March. QVC Japan's ASP in local currency increased 3% and units shipped increased 12% in the second quarter. QVC Japan's second quarter returns as a percent of gross product revenue in local currency increased by 144 basis points primarily due to higher return rates in apparel, jewelry and home due to the mix of products within

2



those categories. QVC Japan's adjusted OIBDA in local currency increased 16% and adjusted OIBDA margin increased 65 basis points in the second quarter. The increase in adjusted OIBDA margin was due primarily to lower commissions expense as a result of contract renegotiations and fixed commission fee revenue leverage as well as a higher absorption of warehouse and call center costs due to increased revenue. Product margins also increased primarily due to higher product margins in the beauty category.

QVC Germany's revenue declined 1% in local currency in the second quarter primarily due to decreased sales in health and fitness and apparel, somewhat offset by increased sales of beauty products. QVC Germany's ASP in local currency decreased 3% and units shipped declined 1% in the second quarter. QVC Germany's second quarter returns as a percent of gross product revenue in local currency improved by 219 basis points and was primarily due to a shift in mix from apparel to beauty. QVC Germany's adjusted OIBDA in local currency increased 7% and adjusted OIBDA margin increased 127 basis points in the second quarter. The improvement in OIBDA margin was driven by a reversal of earlier bonus accruals to better reflect current business results, along with expense management and lower returns volume.

QVC UK's revenue increased 4% in local currency in the second quarter primarily due to sales increases in beauty and apparel products. QVC UK's ASP in local currency increased 3% and units shipped increased 1% for the second quarter. QVC UK's second quarter returns as a percent of gross product revenue in local currency increased by 37 basis points primarily due to a product mix shift to apparel. QVC UK's adjusted OIBDA in local currency decreased 16% and adjusted OIBDA margin decreased 342 basis points in the second quarter. The decrease in adjusted OIBDA margin was primarily due to higher duplicate running costs including an existing lease cancellation accrual associated with the transition to the UK's new headquarters in June 2012.

QVC Italy continued the trend upward with a 21% sequential sales growth in local currency over the first quarter of 2012. QVC Italy's sales were primarily from the home, beauty and apparel product categories.

QVC's outstanding bank and bond debt was $2.3 billion at June 30, 2012.


3



eCommerce Businesses
In the aggregate, Liberty Interactive's eCommerce businesses increased revenue 13% to $391 million for the second quarter. Adjusted OIBDA decreased 36% to $23 million for the quarter and operating income decreased to a loss of $1 million. All but one of our eCommerce businesses reported an increase in revenue for the quarter as a result of increased marketing efforts driving additional traffic and increased conversion resulting from site optimization and broader inventory offerings. The decrease in adjusted OIBDA was the result of legal settlements, increased spending in paid search as a percentage of revenue, increased promotional activity to move seasonal inventory, lower advertising revenue due to pricing and a shift to mobile applications and a management compensation arrangement to retain key personnel for transition purposes at one of our eCommerce subsidiaries.

Share Repurchases
From May 1, 2012 through June 29, 2012, after which we mailed our proxy statement, Liberty Interactive repurchased approximately 14.7 million Series A Liberty Interactive shares at an average cost per share of $17.52 for total cash consideration of $257.4 million. Since the creation of the Liberty Interactive stock in May 2006, Liberty Interactive has repurchased approximately 172.2 million shares at an average cost per share of $18.99 for aggregate cash consideration of $3.3 billion. These repurchases represent approximately 24.6% of the shares outstanding at the time of creation of the Liberty Interactive stock. As of July 31, 2012, Liberty Interactive had approximately $429 million remaining under its stock repurchase authorization.

Liberty Interactive holds controlling interests in companies that are engaged in digital commerce, including QVC, Provide Commerce, Backcountry.com, Bodybuilding.com, Celebrate Interactive, CommerceHub, and Right Start, and also owns interests in HSN, Tree.com, Interval Leisure Group, TripAdvisor, Expedia and Lockerz.

FOOTNOTES

1)
Liberty Interactive Corporation's President and CEO, Gregory B. Maffei, will discuss these highlights and other matters in Liberty Interactive's earnings conference call which will begin at 10:00 a.m. (ET) on August 8, 2012. For information regarding how to access the call, please see “Important Notice” later in this document.
2)
For a definition of adjusted OIBDA and applicable reconciliations and a definition of adjusted OIBDA margin, see the accompanying schedules.


4



LIBERTY INTERACTIVE CORPORATION FINANCIAL METRICS
(amounts in millions)
2Q11
2Q12
% Change
Revenue
 
 
 
QVC
 
 
 
   US
$
1,232

1,280

4
 %
   International
666

694

4
 %
Total QVC Revenue
1,898

1,974

4
 %
eCommerce businesses
347

391

13
 %
Total Liberty Interactive Revenue
$
2,245

2,365

5
 %
 
 
 
 
Adjusted OIBDA
 
 
 
QVC
 
 
 
   US
$
305

315

3
 %
   International
113

123

9
 %
Total QVC Adjusted OIBDA
418

438

5
 %
eCommerce businesses
36

23

(36
)%
Corporate and other
(4
)
(6
)
(50
)%
Total Liberty Interactive Adjusted OIBDA
$
450

455

1
 %
 
 
 
 
Operating Income
 
 
 
QVC
 
 
 
   US
$
204

214

5
 %
   International
77

87

13
 %
Total QVC Operating Income
281

301

7
 %
eCommerce businesses
19

(1
)
(105
)%
Corporate and other
(12
)
(10
)
17
 %
Total Liberty Interactive Operating Income
$
288

290

1
 %
 
 
 
 


5



QVC OPERATING METRICS
(amounts in millions except average sale price amounts)
2Q11
2Q12
% Change
QVC - US(1)
 
 
 
   Revenue
$
1,232

1,280

4
 %
   Adjusted OIBDA
$
305

315

3
 %
   Adjusted OIBDA margin
24.76
 %
24.61
 %
 -15 bps

   Average sale price (ASP)
$
52.02

54.84

5
 %
   Units sold
25.68

25.59

 %
   eCommerce % of US revenue
35.08
 %
38.89
 %
 381 bps

   Return rate
18.44
 %
19.61
 %
 -117 bps

 
 
 
 
QVC - Japan(1)
 
 
 
   Revenue
$
269

310

15
 %
   Adjusted OIBDA
$
59

70

19
 %
   Adjusted OIBDA margin
21.93
 %
22.58
 %
 65 bps

   Average sale price (ASP)
6,179

6,376

3
 %
   Units sold
3.89

4.35

12
 %
 
 
 
 
QVC - Germany(1)
 
 
 
   Revenue
$
237

210

(11
)%
   Adjusted OIBDA
$
41

39

(5
)%
   Adjusted OIBDA margin
17.3
 %
18.57
 %
 127 bps

   Average sale price (ASP)
36.51

35.31

(3
)%
   Units sold
5.99

5.92

(1
)%
 
 
 
 
QVC - UK(1)
 
 
 
   Revenue
$
154

156

1
 %
   Adjusted OIBDA
$
26

21

(19
)%
   Adjusted OIBDA margin
16.88
 %
13.46
 %
 -342 bps

   Average sale price (ASP)
27.07

27.90

3
 %
   Units sold
3.74

3.79

1
 %
 
 
 
 
QVC - Italy(1)
 
 
 
   Revenue
$
6

18

200
 %
   Adjusted OIBDA
$
(13
)
(7
)
46
 %
   Adjusted OIBDA margin
(216.67
)%
(38.89
)%
 NM

   Average sale price (ASP)
32.83

32.71

 %
   Units sold
0.13

0.47

 NM

(1)
Revenue and adjusted OIBDA change calculated in US dollars, not local currency

 

6



NOTES
Unless otherwise noted, the foregoing discussion compares financial information for the three months ended June 30, 2012 to the same period in 2011.

On September 23, 2011, Liberty Interactive completed the split-off of a wholly owned subsidiary, Liberty Media Corporation ("LMC") (formerly known as Liberty CapStarz, Inc. and Liberty Splitco, Inc.) (the "Split-Off"). At the time of the Split-Off, LMC owned all the assets, businesses and liabilities attributed to the Liberty Capital and Liberty Starz tracking stock groups immediately prior to the Split-Off. The Split-Off was effected by means of a redemption of all of the Liberty Capital common stock and Liberty Starz common stock of Liberty Interactive for all of the common stock of LMC. This transaction has been accounted for at historical cost due to the pro rata nature of the distribution.

Following the Split-Off, Liberty Interactive and LMC operate as separate, publicly traded companies, and neither has any stock ownership, beneficial or otherwise, in the other. In connection with the Split-Off, Liberty Interactive and LMC entered into certain agreements in order to govern certain of the ongoing relationships between the two companies after the Split-Off and to provide for an orderly transition. These agreements include a Reorganization Agreement, a Services Agreement, a Facilities Sharing Agreement and a Tax Sharing Agreement. Certain prior period amounts have been reclassified for comparability with the current presentation.

The following financial information is intended to supplement Liberty Interactive's consolidated statements of operations which are included in its Form 10-Q.

Fair Value of Public Holdings
(amounts in millions)
3/31/2012
6/30/2012
Expedia(1)
$
1,157

1,664

TripAdvisor(1)
1,235

1,169

HSN(1)
761

808

Interval Leisure Group and Tree.com(1)
311

348

Non Strategic Public Holdings(2)
1,339

1,380

     Total Liberty Interactive
$
4,803

5,369

(1)
Represents fair value of Liberty Interactive's investments. In accordance with GAAP, Liberty Interactive accounts for these investments using the equity method of accounting and includes these investments in its consolidated balance sheet at their historical carrying values which aggregated $1,137 million and $1,160 million at March 31, 2012 and June 30, 2012, respectively.
(2)
Represents Liberty Interactive's non-strategic public holdings which are accounted for at fair value.


7



Cash and Debt
The following presentation is provided to separately identify cash and liquid investments and debt information.
(amounts in millions)
3/31/2012
6/30/2012
Cash and liquid investments(1)
$
802

790

Less: Short-term marketable securities
8


Total Liberty Interactive Cash (GAAP)
$
794

790

 
 
 
Debt:
 
 
Senior notes and debentures(2)
$
1,100

1,100

Senior exchangeable debentures(3)
2,965

2,854

QVC senior notes(2)
2,000

2,000

QVC bank credit facility
382

302

Other
97

118

Total Liberty Interactive Debt
6,544

6,374

Unamortized discount
(19
)
(19
)
Fair market value adjustment
(342
)
(306
)
Total Liberty Interactive Debt (GAAP)
$
6,183

6,049

 
 
 
(1)
Includes $8 million of short-term marketable securities with an original maturity greater than 90 days as of March 31, 2012, which are included as other current assets on Liberty Interactive's balance sheet.
(2)
Face amount of Senior Notes and Debentures with no reduction for the unamortized discount or fair market value adjustment.
(3)
Face amount of Senior Exchangeable Debentures with no reduction for the unamortized discount or fair market value adjustment.

Total cash and liquid investments decreased $12 million, primarily due to stock repurchases, debt repayments and capital expenditures. These cash outflows were partially offset by cash flow from operations at QVC and proceeds received from dispositions. Total debt decreased by $170 million, primarily due to repayments on the QVC bank credit facility and $111 million of extraordinary distributions made on the 3.5% senior exchangeable debentures as a result of the Motorola Mobility acquisition. These repayments were partially offset by borrowings at various eCommerce businesses.

Important Notice: Liberty Interactive Corporation (Nasdaq: LINTA, LINTB) President and CEO, Gregory B. Maffei will discuss Liberty Interactive's earnings release in a conference call that will begin at 10:00 a.m. (ET) on August 8, 2012. The call can be accessed by dialing (800) 967-7187 or (719) 457-2715 at least 10 minutes prior to the start time. Replays of the conference call can be accessed until 11:00 a.m. (ET) on August 15, 2012, by dialing (888) 203-1112 or (719) 457-0820 plus the pass code 4430057#. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to http://www.libertyinteractive.com/events. Links to this press release will also be available on the Liberty Interactive's website.

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial prospects, international expansion, new service and product offerings, the creation of the Liberty Ventures tracking stock, the continuation of our stock repurchase program, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of new products or services, competitive issues, regulatory matters affecting our businesses, continued access to capital on terms acceptable to Liberty Interactive, our ability to satisfy the conditions to the creation of the Liberty Ventures tracking stock and market conditions conducive to stock repurchases. These forward-looking statements speak only as of the date of this press release, and Liberty Interactive expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Interactive's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty Interactive, including the most recent Forms 10-Q and 10-K, for additional information about Liberty Interactive and about the risks and uncertainties related to Liberty Interactive's business which may affect the statements made in this press release.

Additional Information
Nothing in this presentation shall constitute a solicitation to buy or an offer to sell shares of Liberty Interactive's proposed new tracking stock or Liberty Interactive's existing common stock. The offer and sale of shares of the proposed tracking stock will

8



only be made pursuant to Liberty Interactive's effective registration statement. Liberty Interactive stockholders and other investors are urged to read the registration statement filed with the SEC, including the definitive proxy statement/prospectus contained therein, because they contain important information about the issuance of shares of the proposed tracking stock. Copies of Liberty Interactive's SEC filings are available free of charge at the SEC's website (http://www.sec.gov). Copies of the filings together with the materials incorporated by reference therein are also available, without charge, by directing a request to Liberty Interactive Corporation, 12300 Liberty Boulevard, Englewood, Colorado 80112, Attention: Investor Relations, Telephone: (720) 875-5408.

Participants in a Solicitation
The directors and executive officers of Liberty Interactive and other persons may be deemed to be participants in the solicitation of proxies in respect of proposals relating to the approval of the issuance of the new tracking stock. Information regarding the directors and executive officers of Liberty Interactive and other participants in the proxy solicitation and a description of their respective direct and indirect interests, by security holdings or otherwise, is available in the definitive proxy materials filed with the SEC.

Contact: Courtnee Ulrich (720) 875-5420

SUPPLEMENTAL INFORMATION
As a supplement to Liberty Interactive's consolidated statements of operations, which are included in its Form 10-Q, the following is a presentation of quarterly information and operating metrics on a stand-alone basis for the largest privately held business (QVC) owned by Liberty Interactive at June 30, 2012, which Liberty Interactive has identified as a reportable segment.

Please see below for the definition of adjusted OIBDA and a discussion of why management believes the presentation of adjusted OIBDA for QVC provides useful information for investors. Schedule 2 to this press release provides a reconciliation of adjusted OIBDA for each identified reportable segment to that segment's operating income for the same period, as determined under GAAP.

QUARTERLY SUMMARY
(amounts in millions)
2Q11
3Q11
4Q11
1Q12
2Q12
Liberty Interactive
 
 
 
 
 
QVC
 
 
 
 
 
Revenue - US
$
1,232

1,196

1,792

1,240

1,280

Revenue - International
666

690

857

692

694

Revenue - Total
$
1,898

1,886

2,649

1,932

1,974

Adjusted OIBDA - US
305

259

401

270

315

Adjusted OIBDA - International
113

114

178

120

123

Adjusted OIBDA - Total
$
418

373

579

390

438

Operating income - US
204

159

254

171

214

Operating income - International
77

75

143

87

87

Operating income - Total
$
281

234

397

258

301

Gross margin - US
37.5
%
35.7
%
34.6
%
35.6
%
37.2
%
Gross margin - International
38.0
%
36.7
%
37.4
%
37.7
%
38.1
%
 
 
 
 
 
 
NON-GAAP FINANCIAL MEASURES

This press release includes a presentation of adjusted OIBDA, which is a non-GAAP financial measure, for Liberty Interactive, QVC (and certain of its subsidiaries), and the eCommerce businesses together with a reconciliation to that entity's operating income, as determined under GAAP. Liberty Interactive defines adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock and other equity-based compensation) and excludes from that definition depreciation and amortization and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Further, this press release includes adjusted OIBDA margin which is also a non-GAAP financial measure. Liberty Interactive defines adjusted OIBDA margin as adjusted OIBDA divided by revenue.

9



Liberty Interactive 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 Interactive 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 Interactive's management considers in assessing the results of operations and performance of its assets. Please see the attached schedules for applicable reconciliations.

SCHEDULE 1

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

QUARTERLY SUMMARY
(amounts in millions)
2Q11
3Q11
4Q11
1Q12
2Q12
Liberty Interactive
 
 
 
 
 
Adjusted OIBDA
$
450

377

618

418

455

Depreciation and amortization
(148
)
(151
)
(193
)
(143
)
(147
)
Stock compensation expense
(14
)
(2
)
(17
)
(17
)
(18
)
Operating Income
$
288

224

408

258

290

 
 
 
 
 
 
SCHEDULE 2

The following table provides a reconciliation of adjusted OIBDA for QVC (and certain of its subsidiaries) and the eCommerce businesses to that reportable segment's operating income (loss) calculated in accordance with GAAP for the three months ended June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

QUARTERLY SUMMARY
(amounts in millions)
2Q11
3Q11
4Q11
1Q12
2Q12
Liberty Interactive
 
 
 
 
 
QVC Adjusted OIBDA
 
 
 
 
 
QVC US
$
305

259

401

270

315

 
 
 
 
 
 
QVC Japan
59

61

78

63

70

QVC Germany
41

40

69

46

39

QVC UK
26

24

40

20

21

QVC Italy
(13
)
(11
)
(9
)
(9
)
(7
)
QVC International adjusted OIBDA
$
113

114

178

120

123

 
 
 
 
 
 
Consolidated QVC adjusted OIBDA
$
418

373

579

390

438

Depreciation and amortization
(131
)
(133
)
(176
)
(127
)
(129
)
Stock compensation
(6
)
(6
)
(6
)
(5
)
(8
)
Operating Income
$
281

234

397

258

301

 
 
 
 
 
 
eCommerce Businesses
 
 
 
 
 
Adjusted OIBDA
$
36

9

49

34

23

Depreciation and amortization
(16
)
(17
)
(17
)
(17
)
(16
)
Stock compensation
(1
)
6

(2
)
(2
)
(8
)
    Operating Income (Loss)
$
19

(2
)
30

15

(1
)
 
 
 
 
 
 

10



LIBERTY INTERACTIVE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
 
6/30/2012
 
12/31/2011
 
amounts in millions
ASSETS
 
 
 
Current assets:
 
 
 
    Cash and cash equivalents
$
790

 
 
847

 
    Trade and other receivables, net
664
 
 
 
1,054

 
    Inventory, net
1,096
 
 
 
1,071

 
    Other current assets
87
 
 
 
148

 
        Total current assets
2,637
 
 
 
3,120

 
 
 
 
 
 
 
Investments in available-for-sale securities and other cost investments
1,384
 
 
 
1,168

 
Investments in affiliates, accounted for using the equity method
1,213
 
 
 
1,135

 
Property and equipment, at cost
2,093
 
 
 
2,002

 
Accumulated depreciation
(925
)
 
 
(869
)
 
 
1,168
 
 
 
1,133

 
Intangible assets not subject to amortization:
 
 
 
    Goodwill
5,985
 
 
 
5,978

 
    Trademarks
2,525
 
 
 
2,518

 
 
8,510
 
 
 
8,496

 
Intangible assets subject to amortization, net
2,045
 
 
 
2,209

 
Other assets, at cost, net of accumulated amortization
74
 
 
 
78

 
        Total assets
$
17,031

 
 
17,339

 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities:
 
 
 
    Accounts payable
$
482

482

 
 
599

 
    Accrued liabilities
682
 
 
 
801

 
    Current portion of debt
1,485
 
 
 
1,189

 
    Deferred income tax liabilities
836
 
 
 
851

 
    Other current liabilities
372
 
 
 
128

 
        Total current liabilities
3,857
 
 
 
3,568

 
 
 
 
 
 
 
Long-term debt, including $2,548 million and $2,443 million measured at fair value
4,564
 
 
 
4,850

 
Deferred income tax liabilities
2,083
 
 
 
2,046

 
Other liabilities
218
 
 
 
248

 
        Total liabilities
10,722
 
 
 
10,712

 
 
 
 
 
 
 
Equity:
 
 
 
    Total stockholders' equity
6,177
 
 
 
6,493

 
    Noncontrolling interests in equity of subsidiaries
132
 
 
 
134

 
        Total equity
6,309
 
 
 
6,627

 
Commitments and contingencies
 
 
 
        Total liabilities and equity
$
17,031

17,031

 
 
17,339

 
 
 
 
 
 
 


11



LIBERTY INTERACTIVE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
 
Three months ended
 
Six months ended
 
6/30/2012
6/30/2011
 
6/30/2012
6/30/2011
 
amounts in millions
 REVENUE AND GROSS PROFIT:
 
 
 
 
 
 
 
    Net retail sales
$
2,365

 
 
2,245

 
 
4,679

 
 
4,404

 
Cost of sales (exclusive of depreciation shown separately below)
1,488
 
 
 
1,398

 
 
2,954

 
 
2,775

 
         Gross Profit
877
 
 
 
847

 
 
1,725

 
 
1,629

 
 
 
 
 
 
 
 
 
 OPERATING COSTS AND EXPENSES:
 
 
 
 
 
 
 
    Operating
199
 
 
 
209

 
 
407

 
 
412

 
Selling, general and administrative, including stock-based compensation
241
 
 
 
202

 
 
480

 
 
419

 
    Depreciation and amortization
147
 
 
 
148

 
 
290

 
 
297

 
 
587
 
 
 
559

 
 
1,177

 
 
1,128

 
    Operating income
290
 
 
 
288

 
 
548

 
 
501

 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
    Interest expense
(107
)
 
 
(107
)
 
 
(213
)
 
 
(221
)
 
    Share of earnings (losses) of affiliates, net
35
 
 
 
37

 
 
46

 
 
57

 
Realized and unrealized gains (losses) on financial instruments, net
(160
)
 
 
89

 
 
(178
)
 
 
30

 
    Gains (losses) on dispositions, net
288
 
 
 

 
 
288

 
 

 
    Other, net
30
 
 
 
3

 
 
33

 
 
21

 
 
86
 
 
 
22

 
 
(24
)
 
 
(113
)
 
 Earnings (loss) from continuing operations before income taxes
376
 
 
 
310

 
 
524

 
 
388

 
    Income tax (expense) benefit
(127
)
 
 
(115
)
 
 
(170
)
 
 
(130
)
 
 Earnings (loss) from continuing operations
249
 
 
 
195

 
 
354

 
 
258

 
    Earnings (loss) from discontinued operations, net of taxes
 
 
 
74

 
 

 
 
410

 
 Net earnings (loss)
249
 
 
 
269

 
 
354

 
 
668

 
Less net earnings (loss) attributable to the noncontrolling interests
15
 
 
 
12

 
 
29

 
 
22

 
 Net earnings (loss) attributable to Liberty Interactive Corporation shareholders
$
234

 
 
257

 
 
325

 
 
646

 
 Net earnings (loss) attributable to Liberty Interactive Corporation shareholders:
 
 
 
 
 
 
 
    Liberty Capital common stock
 
NA

 
 
8

 
 
 NA

 
 
301

 
    Liberty Starz common stock
NA
 
 
 
67

 
 
NA

 
 
119

 
    Liberty Interactive common stock
$
234

 
 
182

 
 
325

 
 
226

 
 
$
234

 
 
257

 
 
325

 
 
646

 
 
 
 
 
 
 
 
 
 
 
 
 


12



LIBERTY INTERACTIVE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
 
Six months ended
 
6/30/2012
 
6/30/2011
 
amounts in millions
 CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
    Net earnings
$
354

 
 
668

 
    Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
        (Earnings) loss from discontinued operations
 
 
 
(410
)
 
        Depreciation and amortization
290
 
 
 
297

 
        Stock-based compensation
35
 
 
 
30

 
        Share of (earnings) losses of affiliates, net
(46
)
 
 
(57
)
 
        Realized and unrealized (gains) losses on financial instruments, net
178
 
 
 
(30
)
 
        (Gains) losses on disposition of assets, net
(288
)
 
 

 
        Deferred income tax expense (benefit)
26
 
 
 
(44
)
 
        Other, net
(14
)
 
 
(50
)
 
        Changes in operating assets and liabilities
 
 
 
            Current and other assets
357
 
 
 
230

 
            Payables and other liabilities
(162
)
 
 
(302
)
 
 Net cash provided (used) by operating activities
730
 
 
 
332

 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
    Cash proceeds from dispositions
348
 
 
 

 
    Investment in and loans to cost and equity investees
(108
)
 
 
(7
)
 
    Capital expended for property and equipment
(151
)
 
 
(103
)
 
    Net sales (purchases) of short term investments
46
 
 
 
(48
)
 
    Other investing activities, net
(40
)
 
 
1

 
Net cash provided (used) by investing activities
95
 
 
 
(157
)
 
 
 
 
 
 CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
    Borrowings of debt
666
 
 
 
192

 
    Repayments of debt
(873
)
 
 
(393
)
 
    Repurchases of Liberty Interactive common stock
(637
)
 
 

 
    Other financing activities, net
(26
)
 
 
(42
)
 
Net cash provided (used) by financing activities
(870
)
 
 
(243
)
 
 Effect of foreign currency exchange rates on cash
(12
)
 
 
11

 
 Net cash provided (used) by discontinued operations:
 
 
 
    Cash provided (used) by operating activities
 
 
 
294

 
    Cash provided (used) by investing activities
 
 
 
144

 
    Cash provided (used) by financing activities
 
 
 
(146
)
 
    Change in available cash held by discontinued operations
 
 
 
(276
)
 
        Net cash provided (used) by discontinued operations
 
 
 
16

 
 
 
 
 
 
 
            Net increase (decrease) in cash and cash equivalents
(57
)
 
 
(41
)
 
            Cash and cash equivalents at beginning of period
847
 
 
 
1,353

 
 Cash and cash equivalents at end of period
$
790

 
 
1,312

 


13