Exhibit 99.1


Unaudited Attributed Financial Information for Tracking Stock Groups
Our Liberty Interactive common stock is intended to reflect the separate performance of our Interactive Group which is comprised of our businesses engaged in video and on-line commerce, including our subsidiaries, QVC, Inc., Provide Commerce, Inc., Backcountry.com, Inc., Bodybuilding.com, LLC, Celebrate Interactive Holdings, Inc. and our interest in HSN, Inc. Our Liberty Ventures common stock is intended to reflect the separate performance of our Ventures Group which consists of all of our businesses not included in the Interactive Group including our consolidated subsidiary TripAdvisor, Inc. ("TripAdvisor"), as of December 11, 2012, and our interest in equity method investments of Expedia, Inc., Interval Leisure Group, Inc. and Tree.com, Inc. and available-for-sale securities Time Warner, Time Warner Cable and AOL.
The following tables present our assets and liabilities as of December 31, 2012 and 2011 and revenue, expenses and cash flows for the three years ended December 31, 2012, 2011 and 2010. The tables further present our assets, liabilities, revenue, expenses and cash flows that are attributed to the Interactive Group and the Ventures Group, respectively, as if those businesses and assets had been attributed to those respective groups at the beginning of each period, for comparative purposes. Therefore, the attributed earnings in the periods presented in the Unaudited Attributed Financial Information Statements are not the same as those reflected in the Liberty Interactive Corporation consolidated financial statements. The earnings attributed to the Liberty Interactive common stock and Liberty Ventures common stock for purposes of those financial statements only relate to the periods after the tracking stocks were issued. The financial information in this Exhibit should be read in conjunction with our consolidated financial statements for the year ended December 31, 2012 included in this Annual Report on Form 10-K.
Notwithstanding the following attribution of assets, liabilities, revenue, expenses and cash flows to the Interactive Group and the Ventures Group, our tracking stock structure does not affect the ownership or the respective legal title to our assets or responsibility for our liabilities. We and our subsidiaries are each responsible for our respective liabilities. Holders of Liberty Interactive common stock and Liberty Ventures common stock are holders of our common stock and are subject to risks associated with an investment in our company and all of our businesses, assets and liabilities. The issuance of Liberty Interactive common stock and Liberty Ventures common stock does not affect the rights of our creditors or creditors of our subsidiaries.

1

SUMMARY ATTRIBUTED FINANCIAL DATA
Interactive Group
 
December 31, 2012
 
December 31, 2011
 
amounts in millions
Summary balance sheet data:
 
 
 
Current assets
$
3,141

 
3,275

Investments in affiliates, accounted for using the equity method
$
304

 
230

Intangible assets not subject to amortization, net
$
8,431

 
8,496

Total assets
$
15,115

 
15,424

Long-term debt
$
4,277

 
3,575

Long-term deferred income tax liabilities
$
1,318

 
1,493

Attributed net assets
$
7,011

 
8,464


 
Years ended December 31,
 
2012
 
2011
 
2010
 
amounts in millions
Summary operations data:
 
 
 
 
 
Revenue
$
10,018

 
9,616

 
8,932

Cost of sales
(6,396
)
 
(6,114
)
 
(5,705
)
Operating expenses
(833
)
 
(866
)
 
(799
)
Selling, general and administrative expenses (1)
(977
)
 
(858
)
 
(746
)
Impairment of intangible assets
(92
)
 
—

 
—

Depreciation and amortization
(596
)
 
(641
)
 
(571
)
Operating income (loss)
1,124

 
1,137

 
1,111

Interest expense
(322
)
 
(317
)
 
(515
)
Share of earnings (losses) of affiliates, net
28

 
23

 
8

Realized and unrealized gains (losses) on financial instruments, net
51

 
75

 
117

Other income (expense), net
—

 
15

 
311

Income tax benefit (expense)
(352
)
 
(353
)
 
(160
)
Earnings (loss) from continuing operations
529

 
580

 
872

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

 
378

 
1,101

Net earnings (loss)
529

 
958

 
1,973

Less net earnings (loss) attributable to noncontrolling interests
63

 
53

 
45

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders
$
466

 
905

 
1,928

______________________________________________
(1)
Includes stock-based compensation of $85 million, $49 million and $67 million for the years ended December 31, 2012, 2011 and 2010, respectively.

2

SUMMARY ATTRIBUTED FINANCIAL DATA (Continued)
Ventures Group
 
December 31, 2012
 
December 31, 2011
 
amounts in millions
Summary balance sheet data:
 
 
 
Cash and cash equivalents
$
1,961

 
—

Investments in available-for-sale securities and other cost investments
$
1,815

 
1,165

Investments in affiliates, accounted for using the equity method
$
547

 
905

Intangible assets not subject to amortization, net
$
5,449

 
—

Long-term debt, including current portion
$
3,342

 
2,443

Deferred tax liabilities, including current portion
$
2,959

 
1,559

Attributed net assets (liabilities)
$
551

 
(1,971
)
 
 
Years ended December 31,
 
2012
 
2011
 
2010
 
amounts in millions
Summary operations data:
 
 
 
 
 
Revenue
$
36

 
—

 
—

Operating expenses
(7
)
 
—

 
—

Selling, general and administrative expenses (1)
(32
)
 
(4
)
 
(3
)
Depreciation and amortization
(13
)
 
—

 
—

Operating income (loss)
(16
)
 
(4
)
 
(3
)
Interest expense
(110
)
 
(110
)
 
(111
)
Share of earnings (losses) of affiliates, net
57

 
117

 
104

Realized and unrealized gains (losses) on financial instruments, net
(402
)
 
9

 
(55
)
Gains (losses) on transactions, net
1,531

 
—

 
—

Other, net
44

 
(6
)
 
(3
)
Income tax benefit (expense)
(42
)
 
1

 
32

Net earnings (loss)
1,062

 
7

 
(36
)
Less net earnings (loss) attributable to noncontrolling interests
(2
)
 
—

 
—

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders
$
1,064

 
7

 
(36
)
______________________________________________
(1)
Includes stock-based compensation of $6 million, zero and zero for the years ended December 31, 2012, 2011 and 2010, respectively.

3

BALANCE SHEET INFORMATION
December 31, 2012
(unaudited)
 
Attributed (note 1)
 
 
 
 
 
Interactive
Group
 
Ventures Group
 
Inter-group
eliminations
 
Consolidated
Liberty
 
amounts in millions
Assets
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
699

 
1,961

 
—

 
2,660

Trade and other receivables, net
1,095

 
106

 
—

 
1,201

Inventory, net
1,106

 
—

 
—

 
1,106

Other current assets
241

 
206

 
(156
)
 
291

Total current assets
3,141

 
2,273

 
(156
)
 
5,258

Investments in available-for-sale securities and other cost investments (note 2)
4

 
1,815

 
—

 
1,819

Investments in affiliates, accounted for using the equity method (note 3)
304

 
547

 
—

 
851

Property and equipment, net
1,220

 
15

 
—

 
1,235

Intangible assets not subject to amortization, net
8,431

 
5,449

 
—

 
13,880

Intangible assets subject to amortization, net
1,934

 
1,183

 
—

 
3,117

Other assets, at cost, net of accumulated amortization
81

 
14

 
—

 
95

Total assets
$
15,115

 
11,296

 
(156
)
 
26,255

Liabilities and Equity
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Intergroup payable (receivable)
$
70

 
(70
)
 
—

 
—

Accounts payable
705

 
14

 
—

 
719

Accrued liabilities
819

 
99

 
—

 
918

Current portion of debt (note 4)
265

 
1,373

 
—

 
1,638

Deferred tax liabilities
—

 
1,068

 
(156
)
 
912

Other current liabilities
267

 
35

 
—

 
302

Total current liabilities
2,126

 
2,519

 
(156
)
 
4,489

Long-term debt (note 4)
4,277

 
1,969

 
—

 
6,246

Deferred income tax liabilities
1,318

 
1,891

 
—

 
3,209

Other liabilities
234

 
26

 
—

 
260

Total liabilities
7,955

 
6,405

 
(156
)
 
14,204

Equity/Attributed net assets (liabilities)
7,011

 
551

 
—

 
7,562

Noncontrolling interests in equity of subsidiaries
149

 
4,340

 
—

 
4,489

Total liabilities and equity
$
15,115

 
11,296

 
(156
)
 
26,255


4


BALANCE SHEET INFORMATION
December 31, 2011
(unaudited)

 
Attributed (note 1)
 
 
 
 
 
Interactive
Group
 
Ventures Group
 
Inter-group
eliminations
 
Consolidated
Liberty
 
amounts in millions
Assets
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
847

 
—

 
—

 
847

Trade and other receivables, net
1,054

 
—

 
—

 
1,054

Inventory, net
1,071

 
—

 
—

 
1,071

Deferred tax assets
155

 
—

 
(155
)
 
—

Other current assets
148

 
—

 
—

 
148

Total current assets
3,275

 
—

 
(155
)
 
3,120

Investments in available-for-sale securities and other cost investments (note 2)
3

 
1,165

 
—

 
1,168

Investments in affiliates, accounted for using the equity method (note 3)
230

 
905

 
—

 
1,135

Property and equipment, net
1,133

 
—

 
—

 
1,133

Intangible assets not subject to amortization, net
8,496

 
—

 
—

 
8,496

Intangible assets subject to amortization, net
2,209

 
—

 
—

 
2,209

Other assets, at cost, net of accumulated amortization
78

 
—

 
—

 
78

Total assets
$
15,424

 
2,070

 
(155
)
 
17,339

Liabilities and Equity
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Intergroup payable (receivable)
—

 
—

 
—

 
—

Accounts payable
$
599

 
—

 
—

 
599

Accrued liabilities
762

 
39

 
—

 
801

Current portion of debt (note 4)
21

 
1,168

 
—

 
1,189

Deferred tax liabilities
—

 
1,006

 
(155
)
 
851

Other current liabilities
128

 
—

 
—

 
128

Total current liabilities
1,510

 
2,213

 
(155
)
 
3,568

Long-term debt (note 4)
3,575

 
1,275

 
—

 
4,850

Deferred income tax liabilities
1,493

 
553

 
—

 
2,046

Other liabilities
248

 
—

 
—

 
248

Total liabilities
6,826

 
4,041

 
(155
)
 
10,712

Equity/Attributed net assets (liabilities)
8,464

 
(1,971
)
 
—

 
6,493

Noncontrolling interests in equity of subsidiaries
134

 
—

 
—

 
134

Total liabilities and equity
$
15,424

 
2,070

 
(155
)
 
17,339




5

STATEMENT OF OPERATIONS INFORMATION
Year ended December 31, 2012
(unaudited)
 
Attributed (note 1)
 
 
 
Interactive Group
 
Ventures Group
 
Consolidated Liberty
 
amounts in millions
Revenue:
 
 
 
 
 
Net retail sales
$
10,018

 
36

 
10,054

Cost of sales
6,396

 
—

 
6,396

    Gross Profit
3,622

 
36

 
3,658

Operating costs and expenses:
 
 
 
 
 
Operating
833

 
7

 
840

Selling, general and administrative, including stock-based compensation (note 5)
977

 
32

 
1,009

Impairment of intangible assets
92

 
—

 
92

Depreciation and amortization
596

 
13

 
609

 
2,498

 
52

 
2,550

Operating income (loss)
1,124

 
(16
)
 
1,108

Other income (expense):
 
 
 
 
 
Interest expense
(322
)
 
(110
)
 
(432
)
Share of earnings (losses) of affiliates, net (note 3)
28

 
57

 
85

Realized and unrealized gains (losses) on financial instruments, net
51

 
(402
)
 
(351
)
Gains (losses) on transactions, net
—

 
1,531

 
1,531

Other, net
—

 
44

 
44

 
(243
)
 
1,120

 
877

Earnings (loss) before income taxes
881

 
1,104

 
1,985

Income tax benefit (expense)
(352
)
 
(42
)
 
(394
)
Net earnings (loss)
529

 
1,062

 
1,591

Less net earnings (loss) attributable to noncontrolling interests
63

 
(2
)
 
61

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders
$
466

 
1,064

 
1,530


6

STATEMENT OF OPERATIONS INFORMATION
Year ended December 31, 2011
(unaudited)
 
Attributed (note 1)
 
 
 
Interactive Group
 
Ventures Group
 
Consolidated Liberty
 
amounts in millions
Revenue:
 
 
 
 
 
Net retail sales
$
9,616

 
—

 
9,616

Cost of sales
6,114

 
—

 
6,114

    Gross Profit
3,502

 
—

 
3,502

Operating costs and expenses:
 
 
 
 
 
Operating
866

 
—

 
866

Selling, general and administrative, including stock-based compensation (note 5)
858

 
4

 
862

Depreciation and amortization
641

 
—

 
641

 
2,365

 
4

 
2,369

Operating income (loss)
1,137

 
(4
)
 
1,133

Other income (expense):
 

 
 

 
 
Interest expense
(317
)
 
(110
)
 
(427
)
Share of earnings (losses) of affiliates, net (note 3)
23

 
117

 
140

Realized and unrealized gains (losses) on financial instruments, net
75

 
9

 
84

Other, net
15

 
(6
)
 
9

 
(204
)
 
10

 
(194
)
Earnings (loss) from continuing operations before income taxes
933

 
6

 
939

Income tax benefit (expense)
(353
)
 
1

 
(352
)
Earnings (loss) from continuing operations
580

 
7

 
587

Earnings (loss) from discontinued operations, net of taxes
378

 
—

 
378

Net earnings (loss)
958

 
7

 
965

Less net earnings (loss) attributable to noncontrolling interests
53

 
—

 
53

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders
$
905

 
7

 
912


7

STATEMENT OF OPERATIONS INFORMATION
Year ended December 31, 2010
(unaudited)
 
Attributed (note 1)
 
 
 
Interactive Group
 
Ventures Group
 
Consolidated Liberty
 
amounts in millions
Revenue:
 
 
 
 
 
Net retail sales
$
8,932

 
—

 
8,932

Cost of sales
5,705

 
—

 
5,705

    Gross Profit
3,227

 
—

 
3,227

Operating costs and expenses:
 
 
 
 
 
Operating
799

 
—

 
799

Selling, general and administrative, including stock-based compensation (note 5)
746

 
3

 
749

Depreciation and amortization
571

 
—

 
571

 
2,116

 
3

 
2,119

Operating income (loss)
1,111

 
(3
)
 
1,108

Other income (expense):
 

 
 

 
 
Interest expense
(515
)
 
(111
)
 
(626
)
Share of earnings (losses) of affiliates, net (note 3)
8

 
104

 
112

Realized and unrealized gains (losses) on financial instruments, net
117

 
(55
)
 
62

Gains (losses) on transactions, net
355

 
—

 
355

Other, net
(44
)
 
(3
)
 
(47
)
 
(79
)
 
(65
)
 
(144
)
Earnings (loss) before income taxes
1,032

 
(68
)
 
964

Income tax benefit (expense)
(160
)
 
32

 
(128
)
Earnings (loss) from continuing operations
872

 
(36
)
 
836

Earnings (loss) from discontinued operations, net of taxes
1,101

 
—

 
1,101

Net earnings (loss)
1,973

 
(36
)
 
1,937

Less net earnings (loss) attributable to noncontrolling interests
45

 
—

 
45

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders
$
1,928

 
(36
)
 
1,892


8

STATEMENT OF CASH FLOWS INFORMATION
Year ended December 31, 2012
(unaudited)
 
Attributed (note 1)
 
 
 
Interactive
Group
 
Ventures Group
 
Consolidated
Liberty
 
amounts in millions
Cash flows from operating activities:
 
 
 
 
 
Net earnings (loss)
$
529

 
1,062

 
1,591

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
596

 
13

 
609

Stock-based compensation
85

 
6

 
91

Cash payments for stock-based compensation
(12
)
 
—

 
(12
)
Excess tax benefit from stock-based compensation
(56
)
 
(8
)
 
(64
)
Noncash interest expense
9

 
—

 
9

Share of losses (earnings) of affiliates, net
(28
)
 
(57
)
 
(85
)
Cash receipts from return on equity investments
11

 
34

 
45

Realized and unrealized gains (losses) on financial instruments, net
(51
)
 
402

 
351

(Gains) losses on transactions, net
—

 
(1,531
)
 
(1,531
)
Impairment of intangible assets
92

 
—

 
92

Deferred income tax (benefit) expense
(179
)
 
192

 
13

Other, net
—

 
(30
)
 
(30
)
Intergroup tax allocation
152

 
(152
)
 
—

Intergroup tax payments
(33
)
 
33

 
—

Changes in operating assets and liabilities
 
 
 
 
 
Current and other assets
(78
)
 
8

 
(70
)
Payables and other current liabilities
433

 
(10
)
 
423

Net cash provided (used) by operating activities
1,470

 
(38
)
 
1,432

Cash flows from investing activities:
 
 
 
 
 
Cash proceeds from dispositions
—

 
1,030

 
1,030

Proceeds from settlements of financial instruments, net
—

 
(258
)
 
(258
)
Investments in and loans to cost and equity investees
(59
)
 
(177
)
 
(236
)
Capital expended for property and equipment
(338
)
 
(1
)
 
(339
)
Net sales (purchases) of short term and other marketable securities
46

 
(76
)
 
(30
)
Other investing activities, net
(111
)
 
97

 
(14
)
Net cash provided (used) by investing activities
(462
)
 
615

 
153

Cash flows from financing activities:
 
 
 
 
 
Borrowings of debt
2,316

 
—

 
2,316

Repayments of debt
(1,392
)
 
(120
)
 
(1,512
)
Proceeds from rights offering
—

 
328

 
328

Reattribution of cash between groups
(1,346
)
 
1,346

 
—

Intergroup receipts (payments), net
162

 
(162
)
 
—

Repurchases of Liberty common stock
(815
)
 
—

 
(815
)
Taxes paid in lieu of shares issued for stock-based compensation
(112
)
 
(16
)
 
(128
)
Excess tax benefit from stock-based compensation
56

 
8

 
64

Other financing activities, net
(5
)
 
—

 
(5
)
Net cash provided (used) by financing activities
(1,136
)
 
1,384

 
248

Effect of foreign currency rates on cash
(20
)
 
—

 
(20
)
Net increase (decrease) in cash and cash equivalents
(148
)
 
1,961

 
1,813

Cash and cash equivalents at beginning of period
847

 
—

 
847

Cash and cash equivalents at end period
$
699

 
1,961

 
2,660


9

STATEMENT OF CASH FLOWS INFORMATION
Year ended December 31, 2011
(unaudited)
 
Attributed (note 1)
 
 
 
Interactive
Group
 
Ventures Group
 
Consolidated
Liberty
 
amounts in millions
Cash flows from operating activities:
 
 
 
 
 
Net earnings (loss)
$
958

 
7

 
965

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
 
 
(Earnings) loss from discontinued operations
(378
)
 
—

 
(378
)
Depreciation and amortization
641

 
—

 
641

Stock-based compensation
49

 
—

 
49

Cash payments for stock-based compensation
(3
)
 
—

 
(3
)
Excess tax benefit from stock-based compensation
(19
)
 
—

 
(19
)
Noncash interest expense
4

 
5

 
9

Share of losses (earnings) of affiliates, net
(23
)
 
(117
)
 
(140
)
Cash receipts from return on equity investments
3

 
19

 
22

Realized and unrealized gains (losses) on financial instruments, net
(75
)
 
(9
)
 
(84
)
Deferred income tax (benefit) expense
(109
)
 
153

 
44

Other, net
(20
)
 
15

 
(5
)
Intergroup tax allocation
154

 
(154
)
 
—

Changes in operating assets and liabilities
 
 
 
 
 
Current and other assets
(174
)
 
—

 
(174
)
Payables and other current liabilities
(20
)
 
(7
)
 
(27
)
Net cash provided (used) by operating activities
988

 
(88
)
 
900

Cash flows from investing activities:
 
 
 
 
 
Cash proceeds from dispositions
—

 
—

 
—

Investments in and loans to cost and equity investees
(56
)
 
(9
)
 
(65
)
Capital expended for property and equipment
(312
)
 
—

 
(312
)
Net sales (purchases) of short term and other marketable securities
(46
)
 
—

 
(46
)
Other investing activities, net
(14
)
 
—

 
(14
)
Net cash provided (used) by investing activities
(428
)
 
(9
)
 
(437
)
Cash flows from financing activities:
 
 
 
 
 
Borrowings of debt
383

 
—

 
383

Repayments of debt
(788
)
 
(111
)
 
(899
)
Intergroup receipts (payments), net
(208
)
 
208

 
—

Repurchases of Liberty common stock
(366
)
 
—

 
(366
)
Taxes paid in lieu of shares issued for stock-based compensation
(5
)
 
—

 
(5
)
Excess tax benefit from stock-based compensation
19

 
—

 
19

Other financing activities, net
(48
)
 
—

 
(48
)
Net cash provided (used) by financing activities
(1,013
)
 
97

 
(916
)
Effect of foreign currency rates on cash
(4
)
 
—

 
(4
)
Net cash provided by (to) discontinued operations
 
 
 
 
 
Cash provided (used) by operating activities
304

 
—

 
304

Cash provided (used) by investing activities
(104
)
 
—

 
(104
)
Cash provided (used) by financing activities
(264
)
 
—

 
(264
)
Change in available cash held by discontinued operations
15

 
—

 
15

Net cash provided by (to) discontinued operations
(49
)
 
—

 
(49
)
Net increase (decrease) in cash and cash equivalents
(506
)
 
—

 
(506
)
Cash and cash equivalents at beginning of period
1,353

 
—

 
1,353

Cash and cash equivalents at end period
$
847

 
—

 
847



10

STATEMENT OF CASH FLOWS INFORMATION
Year ended December 31, 2010
(unaudited)
 
Attributed (note 1)
 
 
 
Interactive
Group
 
Ventures Group
 
Consolidated
Liberty
 
amounts in millions
Cash flows from operating activities:
 
 
 
 
 
Net earnings (loss)
$
1,973

 
(36
)
 
1,937

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
 
 
(Earnings) loss from discontinued operations
(1,101
)
 
—

 
(1,101
)
Depreciation and amortization
571

 
—

 
571

Stock-based compensation
67

 
—

 
67

Cash payments for stock-based compensation
(20
)
 
—

 
(20
)
Excess tax benefit from stock-based compensation
(86
)
 
—

 
(86
)
Noncash interest expense
85

 
5

 
90

Share of losses (earnings) of affiliates, net
(8
)
 
(104
)
 
(112
)
Cash receipts from return on equity investments
2

 
19

 
21

Realized and unrealized gains (losses) on financial instruments, net
(117
)
 
55

 
(62
)
(Gains) losses on transactions, net
(355
)
 
—

 
(355
)
Deferred income tax (benefit) expense
(144
)
 
82

 
(62
)
Other, net
14

 
8

 
22

Intergroup tax allocation
114

 
(114
)
 
—

Changes in operating assets and liabilities
 
 
 
 
 
Current and other assets
247

 
—

 
247

Payables and other current liabilities
46

 
—

 
46

Net cash provided (used) by operating activities
1,288

 
(85
)
 
1,203

Cash flows from investing activities:
 
 
 
 
 
Cash proceeds from dispositions
459

 
—

 
459

Proceeds from settlement of financial instruments, net
(28
)
 
—

 
(28
)
Cash received in exchange transaction
218

 
—

 
218

Capital expended for property and equipment
(258
)
 
—

 
(258
)
Other investing activities, net
(47
)
 
—

 
(47
)
Net cash provided (used) by investing activities
344

 
—

 
344

Cash flows from financing activities:
 
 
 
 
 
Borrowings of debt
2,974

 
—

 
2,974

Repayments of debt
(4,787
)
 
(4
)
 
(4,791
)
Intergroup receipts (payments), net
(89
)
 
89

 
—

Excess tax benefit from stock-based compensation
86

 
—

 
86

Other financing activities, net
(83
)
 
—

 
(83
)
Net cash provided (used) by financing activities
(1,899
)
 
85

 
(1,814
)
Effect of foreign currency rates on cash
14

 
—

 
14

Net cash provided by (to) discontinued operations
 
 
 
 
 
Cash provided (used) by operating activities
88

 
—

 
88

Cash provided (used) by investing activities
7

 
—

 
7

Cash provided (used) by financing activities
(1,498
)
 
—

 
(1,498
)
Change in available cash held by discontinued operations
1,054

 
—

 
1,054

Net cash provided by (to) discontinued operations
(349
)
 
—

 
(349
)
Net increase (decrease) in cash and cash equivalents
(602
)
 
—

 
(602
)
Cash and cash equivalents at beginning of period
1,955

 
—

 
1,955

Cash and cash equivalents at end period
$
1,353

 
—

 
1,353




11

Notes to Attributed Financial Information
(unaudited)
(1)
The Interactive Group is comprised of our consolidated subsidiaries QVC, Inc., Provide Commerce, Inc., Backcountry.com, Inc., Bodybuilding.com, LLC and Celebrate Interactive Holdings, Inc. and our interest in HSN, Inc. Accordingly, the accompanying attributed financial information for the Interactive Group includes the foregoing investment, as well as the assets, liabilities, revenue, expenses and cash flows of those consolidated subsidiaries. We have also attributed certain of our debt obligations (and related interest expense) to the Interactive Group based upon a number of factors, including the cash flow available to the Interactive Group and its ability to pay debt service and our assessment of the optimal capitalization for the Interactive Group. The specific debt obligations attributed to each of the Interactive Group and the Ventures Group are described in note 4 below. In addition, we have allocated certain corporate general and administrative expenses among the Interactive Group and the Ventures Group as described in note 5 below.

The Interactive Group focuses on video and on-line commerce businesses. Accordingly, we expect that businesses that we may acquire in the future that we believe are complementary to this strategy will also be attributed to the Interactive Group.

The Ventures Group consists of all of our businesses not included in the Interactive Group including our consolidated subsidiary TripAdvisor, Inc. ("TripAdvisor") and interests in equity method investments of Expedia, Inc., Interval Leisure Group, Inc. and Tree.com, Inc. and available-for-sale securities Time Warner, Time Warner Cable and AOL. Accordingly, the accompanying attributed financial information for the Ventures Group includes these investments, as well as the assets, liabilities, revenue, expenses and cash flows of TripAdvisor. In addition, we have attributed to the Ventures Group all of our senior exchangeable debentures (and related interest expense). See note 4 below for the debt obligations attributed to the Ventures Group.

Any businesses that we may acquire in the future that we do not attribute to the Interactive Group will be attributed to the Ventures Group.

At the time of issuance of Liberty Ventures common stock, cash of $1,346 million was reattributed to the Ventures Group from the Interactive Group. The Interactive Group borrowed funds under QVC's credit facility in connection with the completion of the recapitalization to have the appropriate amount of cash available to be attributed to each Group.

(2)
Investments in available-for-sale securities, including non-strategic securities, and other cost investments are summarized as follows:
 
December 31, 2012
 
December 31, 2011
 
amounts in millions
Interactive Group
 
 
 
    Other cost investments
$
4

 
3

         Total Interactive Group
4

 
3

Ventures Group
 
 
 
    Time Warner Inc.
1,042

 
787

    Time Warner Cable Inc.
531

 
348

    AOL
59

 
30

Other AFS investments
84

 
—

TripAdvisor AFS securities
99

 
—

         Total Ventures Group
1,815

 
1,165

Consolidated Liberty
$
1,819

 
1,168


12


(3)
The following table presents information regarding certain equity method investments:
 
 
 
 
 
 
 
Share of earnings (losses)
 
December 31, 2012
 
Years ended December 31,
 
Percentage
ownership
 
Carrying
value
 
Market
value
 
 
2012
 
2011
 
2010
 
dollar amounts in millions
 
 
Interactive Group
 
 
 
 
 
 
 
 
 
 
 
    HSN, Inc.
37
%
 
$
242

 
1,102

 
40

 
38

 
31

    Other
various

 
62

 
N/A

 
(12
)
 
(15
)
 
(23
)
        Total Interactive Group
 
 
304

 
 

 
28

 
23

 
8

Ventures Group
 
 
 
 
 
 
 
 
 
 
 
    Expedia, Inc. (1)(2)(3)
17
%
 
431

 
1,389

 
67

 
119

 
103

    TripAdvisor, Inc. (1)(4)
N/A

 
N/A

 
N/A

 
38

 
—

 
—

    Other
various

 
116

 
N/A

 
(48
)
 
(2
)
 
1

        Total Ventures Group
 
 
547

 
 
 
57

 
117

 
104

Consolidated Liberty
 
 
$
851

 
 
 
85

 
140

 
112

___________________________
(1)
During the fourth quarter of 2011 Expedia, Inc. completed the pro-rata split-off of TripAdvisor, a wholly owned subsidiary. Therefore, the Company had a 26% ownership interest in each of Expedia, Inc. and TripAdvisor as of December 31, 2011.
(2)
Liberty entered into a forward sales contract on 12 million shares of Expedia common stock in March 2012 at a per share forward price of $34.316. The forward contract was settled in October 2012 for total cash proceeds of $412 million and the 12 million shares of Expedia common stock, previously held as collateral, were released to the counterparty. In the fourth quarter when the forward contract settled, the difference between the fair value of the Expedia shares and the carrying value of the shares ($443 million) was recognized in the gain (loss) on dispositions, net line item in the statement of operations.
(3)
During the years ended December 31, 2012 and 2011, Expedia, Inc. paid dividends aggregating $23 million and $19 million, respectively, which were recorded as reductions to the investment balance.
(4)
In May 2012, Liberty sold approximately 8.5 million shares of TripAdvisor for cash proceeds of $338 million. The sale resulted in a $288 million gain recorded in gain (losses) on transactions, net, based on the average cost, in the statement of operations. 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, see note 1 in the accompanying consolidated financial statements for additional details of the fourth quarter transaction with TripAdvisor.




13


(4)
Debt attributed to the Interactive Group and the Ventures Group is comprised of the following:
 
 
December 31, 2012
 
 
Outstanding
principal
 
Carrying
value
 
 
amounts in millions
Interactive Group
 
 
 
Senior notes and debentures
 
 
 
 
5.7% Senior Notes due 2013
$
241

 
240

 
8.5% Senior Debentures due 2029
287

 
285

 
8.25% Senior Debentures due 2030
504

 
501

QVC 7.125% Senior Secured Notes due 2017
500

 
500

QVC 7.5% Senior Secured Notes due 2019
1,000

 
988

QVC 7.375% Senior Secured Notes due 2020
500

 
500

QVC 5.125% Senior Secured Notes due 2022
500

 
500

QVC Bank Credit Facilities
903

 
903

Other subsidiary debt
125

 
125

Total Interactive Group
4,560

 
4,542

Ventures Group
 
 
 
Exchangeable Senior Debentures
 
 
 
 
3.125% Exchangeable Senior Debentures due 2023
1,138

 
1,639

 
4% Exchangeable Senior Debentures due 2029
469

 
311

 
3.75% Exchangeable Senior Debentures due 2030
460

 
297

 
3.5% Exchangeable Senior Debentures due 2031
371

 
292

 
3.25% Exchangeable Senior Debentures due 2031
414

 
391

TripAdvisor Debt Facilities
412

 
412

Total Ventures Group
3,264

 
3,342

 
Total consolidated Liberty debt
$
7,824

 
7,884

 
Less current maturities
 
 
(1,638
)
 
Total long-term debt
 
 
$
6,246


At December 31, 2012, the intergroup payable/(receivable) balance includes a intergroup loan of approximately $71 million. The Ventures group acquired $68 million principal amount of the 5.7% Senior Notes due 2023, on the open market, which are attributed to the Interactive group and have been extinguished on a consolidated basis. The intergroup loan carries an interest rate that is equal to the effective yield on the 5.7% Senior Notes at the time of purchase.
(5)
Cash compensation expense for our corporate employees will be allocated among the Interactive Group and the Ventures Group based on the estimated percentage of time spent providing services for each group. On a semi-annual basis estimated time spent will be determined through an interview process and a review of personnel duties unless transactions significantly change the composition of companies and investments in either respective group which would require a more timely reevaluation of estimated time spent. Other general and administrative expenses will be charged directly to the groups whenever possible and are otherwise allocated based on estimated usage or some other reasonably determined methodology. Amounts allocated from the Interactive Group to the Ventures Group was determined to be $5 million and $4 million for the years ended December 31, 2012 and 2011, respectively. We note that stock compensation related to each tracking stock group is determined based on actual options outstanding for each respective tracking stock group, therefore, as it relates to periods prior to the Split-Off no stock compensation expense was recognized by the Ventures group.

While we believe that this allocation method is reasonable and fair to each group, we may elect to change the allocation methodology or percentages used to allocate general and administrative expenses in the future.


14

(6)
We have accounted for income taxes for the Interactive Group and the Ventures Group in the accompanying attributed financial information in a manner similar to a stand-alone company basis. To the extent this methodology differs from our tax sharing policy, differences have been reflected in the attributed net assets of the groups.

Interactive Group

Income tax benefit (expense) consists of:

 
Years ended December 31,
 
2012
 
2011
 
2010
 
amounts in millions
Current:
 
 
 
 
 
Federal
$
(365
)
 
(310
)
 
(199
)
State and local
(26
)
 
(32
)
 
6

Foreign
(140
)
 
(120
)
 
(111
)
 
$
(531
)
 
(462
)
 
(304
)
Deferred:
 
 
 
 
 
Federal
$
152

 
103

 
113

State and local
20

 
2

 
17

Foreign
7

 
4

 
14

 
179

 
109

 
144

Income tax benefit (expense)
$
(352
)
 
(353
)
 
(160
)

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:

 
Years ended December 31,
 
2012
 
2011
 
2010
 
amounts in millions
Computed expected tax benefit (expense)
$
(309
)
 
(327
)
 
(363
)
Nontaxable exchange of investments for subsidiary
—

 
—

 
112

State and local income taxes, net of federal income taxes
(4
)
 
(17
)
 
15

Foreign taxes, net of foreign tax credits
5

 
(3
)
 
48

Change in valuation allowance affecting tax expense
(8
)
 
(15
)
 
—

Nontaxable gains (losses) related to the Company's common stock
1

 
8

 
27

Impairment of intangible assets
(29
)
 
—

 
—

Other, net
(8
)
 
1

 
1

Income tax benefit (expense)
$
(352
)
 
(353
)
 
(160
)


15

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:

 
December 31,
 
2012
 
2011
 
amounts in millions
Deferred tax assets:
 
 
 
Net operating and capital loss carryforwards
$
92

 
60

Foreign tax credit carryforwards
87

 
30

Accrued stock compensation
11

 
44

Other accrued liabilities
80

 
69

Investments
16

 
20

Other future deductible amounts
133

 
188

Deferred tax assets
419

 
411

Valuation allowance
(40
)
 
(16
)
Net deferred tax assets
379

 
395

 
 
 
 
Deferred tax liabilities:
 
 
 
Intangible assets
1,541

 
1,661

Other
—

 
72

Deferred tax liabilities
1,541

 
1,733

Net deferred tax liabilities
$
1,162

 
1,338


The Company's deferred tax assets and liabilities are reported in the accompanying balance sheet information as follows:

 
December 31,
 
2012
 
2011
 
amounts in millions
Current deferred tax assets
$
156

 
155

Long-term deferred tax liabilities
1,318

 
1,493

Net deferred tax liabilities
$
1,162

 
1,338


Ventures Group

Income tax benefit (expense) consists of:

 
Years ended December 31,
 
2012
 
2011
 
2010
 
amounts in millions
Current:
 
 
 
 
 
Federal
$
151

 
154

 
114

State and local
(1
)
 
—

 
—

Foreign
—

 
—

 
—

 
$
150

 
154

 
114

Deferred:
 
 
 
 
 
Federal
$
(183
)
 
(145
)
 
(86
)
State and local
(9
)
 
(8
)
 
4

Foreign
—

 
—

 
—

 
(192
)
 
(153
)
 
(82
)
Income tax benefit (expense)
$
(42
)
 
1

 
32



16

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:

 
Years ended December 31,
 
2012
 
2011
 
2010
 
amounts in millions
Computed expected tax benefit (expense)
$
(386
)
 
(2
)
 
24

State and local income taxes, net of federal income taxes
(7
)
 
(5
)
 
3

Consolidation of previously held equity method affiliate
294

 
—

 
—

Dividends received deductions
10

 
5

 
5

Alternative energy tax credits
48

 
3

 
—

Other, net
(1
)
 
—

 
—

Income tax benefit (expense)
$
(42
)
 
1

 
32


The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:

 
December 31,
 
2012
 
2011
 
amounts in millions
Deferred tax assets:
 
 
 
Net operating and capital loss carryforwards
$
18

 
10

Other
36

 
9

Deferred tax assets
54

 
19

Valuation allowance
(12
)
 
—

Net deferred tax assets
42

 
19

 
 
 
 
Deferred tax liabilities:
 
 
 
Investments
508

 
210

Intangible assets
1,209

 
—

Discount on exchangeable debentures
890

 
978

Deferred gain on debt retirements
321

 
321

Other
73

 
69

Deferred tax liabilities
3,001

 
1,578

Net deferred tax liabilities
$
2,959

 
1,559


The Company's deferred tax assets and liabilities are reported in the accompanying balance sheet information as follows:

 
December 31,
 
2012
 
2011
 
amounts in millions
Current deferred tax liabilities
$
1,068

 
1,006

Long-term deferred tax liabilities
1,891

 
553

Net deferred tax liabilities
$
2,959

 
1,559


(7)
The Liberty Interactive Stock and the Liberty Ventures Stock have voting and conversion rights under our restated charter. Following is a summary of those rights. Holders of Series A common stock of each group is entitled to one vote per share, and holders of Series B common stock of each group are entitled to ten votes per share. Holders of Series C common stock of each group, if issued, are entitled to 1/100th of a vote per share in certain limited cases and will otherwise not be entitled to vote. In general, holders of Series A and Series B common stock will vote as a single class. In certain limited circumstances, the board may elect to seek the approval of the holders of only Series A and Series B Liberty Interactive Stock or the approval of the holders of only Series A and Series B Liberty Ventures Stock.


17

At the option of the holder, each share of Series B common stock will be convertible into one share of Series A common stock of the same group. At the discretion of our board, the common stock related to one group may be converted into common stock of the same series that is related to the other group.


18