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, LLC 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, 2013 and 2012 and revenue, expenses and cash flows for the three years ended December 31, 2013, 2012 and 2011. 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, 2013 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, 2013
 
December 31, 2012
 
amounts in millions
Summary balance sheet data:
 
 
 
Current assets
$
3,245

 
3,141

Investments in affiliates, accounted for using the equity method
$
343

 
304

Intangible assets not subject to amortization, net
$
8,387

 
8,431

Total assets
$
14,862

 
15,115

Long-term debt
$
5,044

 
4,277

Long-term deferred income tax liabilities
$
1,208

 
1,318

Attributed net assets
$
6,378

 
7,011


 
Years ended December 31,
 
2013
 
2012
 
2011
 
amounts in millions
Summary operations data:
 
 
 
 
 
Revenue
$
10,307

 
10,018

 
9,616

Cost of sales
(6,602
)
 
(6,396
)
 
(6,114
)
Operating expenses
(876
)
 
(833
)
 
(866
)
Selling, general and administrative expenses (1)
(1,033
)
 
(977
)
 
(858
)
Impairment of intangible assets
(33
)
 
(92
)
 
—

Depreciation and amortization
(632
)
 
(596
)
 
(641
)
Operating income (loss)
1,131

 
1,124

 
1,137

Interest expense
(292
)
 
(322
)
 
(317
)
Share of earnings (losses) of affiliates, net
48

 
28

 
23

Realized and unrealized gains (losses) on financial instruments, net
(12
)
 
51

 
75

Gains (losses) on transactions, net
(1
)
 
—

 
—

Other income (expense), net
(53
)
 
—

 
15

Income tax benefit (expense)
(338
)
 
(352
)
 
(353
)
Earnings (loss) from continuing operations
483

 
529

 
580

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

 
—

 
378

Net earnings (loss)
483

 
529

 
958

Less net earnings (loss) attributable to noncontrolling interests
45

 
63

 
53

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders
$
438

 
466

 
905

______________________________________________
(1)
Includes stock-based compensation of $110 million, $85 million and $49 million for the years ended December 31, 2013, 2012 and 2011, respectively.

2

SUMMARY ATTRIBUTED FINANCIAL DATA (Continued)
Ventures Group
 
December 31, 2013
 
December 31, 2012
 
amounts in millions
Summary balance sheet data:
 
 
 
Cash and cash equivalents
$
658

 
1,961

Investments in available-for-sale securities and other cost investments
$
1,497

 
1,815

Investments in affiliates, accounted for using the equity method
$
894

 
547

Intangible assets not subject to amortization, net
$
5,288

 
5,449

Long-term debt, including current portion
$
2,301

 
3,342

Deferred tax liabilities, including current portion
$
2,731

 
2,959

Attributed net assets (liabilities)
$
558

 
551

 
 
Years ended December 31,
 
2013
 
2012
 
2011
 
amounts in millions
Summary operations data:
 
 
 
 
 
Revenue
$
945

 
36

 
—

Operating expenses
(153
)
 
(7
)
 
—

Selling, general and administrative expenses (1)
(492
)
 
(32
)
 
(4
)
Depreciation and amortization
(311
)
 
(13
)
 
—

Operating income (loss)
(11
)
 
(16
)
 
(4
)
Interest expense
(81
)
 
(110
)
 
(110
)
Share of earnings (losses) of affiliates, net
(15
)
 
57

 
117

Realized and unrealized gains (losses) on financial instruments, net
(10
)
 
(402
)
 
9

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

 
—

Other, net
7

 
44

 
(6
)
Income tax benefit (expense)
208

 
(42
)
 
1

Net earnings (loss)
97

 
1,062

 
7

Less net earnings (loss) attributable to noncontrolling interests
34

 
(2
)
 
—

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders
$
63

 
1,064

 
7

______________________________________________
(1)
Includes stock-based compensation of $68 million, $6 million and zero for the years ended December 31, 2013, 2012 and 2011, respectively.

3

BALANCE SHEET INFORMATION
December 31, 2013
(unaudited)
 
Attributed (note 1)
 
 
 
 
 
Interactive
Group
 
Ventures Group
 
Inter-group
eliminations
 
Consolidated
Liberty
 
amounts in millions
Assets
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
598

 
658

 
—

 
1,256

Trade and other receivables, net
1,150

 
124

 
—

 
1,274

Inventory, net
1,135

 
—

 
—

 
1,135

Short-term marketable securities
—

 
543

 
—

 
543

Other current assets
362

 
26

 
(170
)
 
218

Total current assets
3,245

 
1,351

 
(170
)
 
4,426

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

 
1,497

 
—

 
1,501

Investments in affiliates, accounted for using the equity method (note 3)
343

 
894

 
—

 
1,237

Property and equipment, net
1,213

 
34

 
—

 
1,247

Intangible assets not subject to amortization, net
8,387

 
5,288

 
—

 
13,675

Intangible assets subject to amortization, net
1,589

 
903

 
—

 
2,492

Other assets, at cost, net of accumulated amortization
81

 
17

 
—

 
98

Total assets
$
14,862

 
9,984

 
(170
)
 
24,676

Liabilities and Equity
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Intergroup payable (receivable)
$
221

 
(221
)
 
—

 
—

Accounts payable
553

 
38

 
—

 
591

Accrued liabilities
958

 
109

 
—

 
1,067

Current portion of debt (note 4)
39

 
939

 
—

 
978

Deferred tax liabilities
—

 
1,095

 
(170
)
 
925

Other current liabilities
145

 
50

 
—

 
195

Total current liabilities
1,916

 
2,010

 
(170
)
 
3,756

Long-term debt (note 4)
5,044

 
1,362

 
—

 
6,406

Deferred income tax liabilities
1,208

 
1,636

 
—

 
2,844

Other liabilities
192

 
43

 
—

 
235

Total liabilities
8,360

 
5,051

 
(170
)
 
13,241

Equity/Attributed net assets (liabilities)
6,378

 
558

 
—

 
6,936

Noncontrolling interests in equity of subsidiaries
124

 
4,375

 
—

 
4,499

Total liabilities and equity
$
14,862

 
9,984

 
(170
)
 
24,676


4


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

Short-term marketable securities
—

 
186

 
—

 
186

Other current assets
241

 
20

 
(156
)
 
105

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




5

STATEMENT OF OPERATIONS INFORMATION
Year ended December 31, 2013
(unaudited)
 
Attributed (note 1)
 
 
 
Interactive Group
 
Ventures Group
 
Consolidated Liberty
 
amounts in millions
Revenue:
 
 
 
 
 
Net retail sales
$
10,307

 
—

 
10,307

Service and other revenue, net
—

 
945

 
945

    Total revenue, net
10,307

 
945

 
11,252

Operating costs and expenses:
 
 
 
 
 
Cost of retail sales (exclusive of depreciation shown separately below)
6,602

 
—

 
6,602

Operating
876

 
153

 
1,029

Selling, general and administrative, including stock-based compensation (note 5)
1,033

 
492

 
1,525

Impairment of intangible assets
33

 
—

 
33

Depreciation and amortization
632

 
311

 
943

 
9,176

 
956

 
10,132

Operating income (loss)
1,131

 
(11
)
 
1,120

Other income (expense):
 
 
 
 
 
Interest expense
(292
)
 
(81
)
 
(373
)
Share of earnings (losses) of affiliates, net (note 3)
48

 
(15
)
 
33

Realized and unrealized gains (losses) on financial instruments, net
(12
)
 
(10
)
 
(22
)
Gains (losses) on transactions, net
(1
)
 
(1
)
 
(2
)
Other, net
(53
)
 
7

 
(46
)
 
(310
)
 
(100
)
 
(410
)
Earnings (loss) before income taxes
821

 
(111
)
 
710

Income tax benefit (expense)
(338
)
 
208

 
(130
)
Net earnings (loss)
483

 
97

 
580

Less net earnings (loss) attributable to noncontrolling interests
45

 
34

 
79

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders
$
438

 
63

 
501


6

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

 
—

 
10,018

Service and other revenue, net
—

 
36

 
36

    Total revenue, net
10,018

 
36

 
10,054

Operating costs and expenses:
 
 
 
 
 
Cost of retail sales (exclusive of depreciation shown separately below)
6,396

 
—

 
6,396

Operating
833

 
7

 
840

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

 
32

 
1,009

Depreciation and amortization
596

 
13

 
609

Impairment of intangible assets
92

 
—

 
92

 
8,894

 
52

 
8,946

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) from continuing operations before income taxes
881

 
1,104

 
1,985

Income tax benefit (expense)
(352
)
 
(42
)
 
(394
)
Earnings (loss) from continuing operations
529

 
1,062

 
1,591

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

 
—

 
—

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


7

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

Service and other revenue, net
—

 
—

 
—

    Total revenue, net
9,616

 
—

 
9,616

Operating costs and expenses:
 
 
 
 
 
Cost of retail sales (exclusive of depreciation shown separately below)
6,114

 
—

 
6,114

Operating
866

 
—

 
866

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

 
4

 
862

Depreciation and amortization
641

 
—

 
641

 
8,479

 
4

 
8,483

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) 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


8

STATEMENT OF CASH FLOWS INFORMATION
Year ended December 31, 2013
(unaudited)
 
Attributed (note 1)
 
 
 
Interactive
Group
 
Ventures Group
 
Consolidated
Liberty
 
amounts in millions
Cash flows from operating activities:
 
 
 
 
 
Net earnings (loss)
$
483

 
97

 
580

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
632

 
311

 
943

Stock-based compensation
110

 
68

 
178

Cash payments for stock-based compensation
(8
)
 
(2
)
 
(10
)
Excess tax benefit from stock-based compensation
(13
)
 
(10
)
 
(23
)
Noncash interest expense
11

 
2

 
13

Share of losses (earnings) of affiliates, net
(48
)
 
15

 
(33
)
Cash receipts from return on equity investments
16

 
19

 
35

Realized and unrealized gains (losses) on financial instruments, net
12

 
10

 
22

(Gains) losses on transactions, net
1

 
1

 
2

(Gains) losses on extinguishment of debt
57

 
—

 
57

Impairment of intangible assets
33

 
—

 
33

Deferred income tax (benefit) expense
(131
)
 
(5
)
 
(136
)
Other, net
(3
)
 
1

 
(2
)
Intergroup tax allocation
272

 
(272
)
 
—

Intergroup tax payments
(52
)
 
52

 
—

Changes in operating assets and liabilities
 
 
 
 
 
Current and other assets
(63
)
 
(18
)
 
(81
)
Payables and other current liabilities
(337
)
 
119

 
(218
)
Net cash provided (used) by operating activities
972

 
388

 
1,360

Cash flows from investing activities:
 
 
 
 
 
Cash proceeds from dispositions
1

 
1,136

 
1,137

Investments in and loans to cost and equity investees
(4
)
 
(380
)
 
(384
)
Capital expended for property and equipment
(295
)
 
(57
)
 
(352
)
Cash paid for acquisitions, net of cash acquired
(24
)
 
(34
)
 
(58
)
Purchases of short term and other marketable securities
—

 
(1,391
)
 
(1,391
)
Sales of short term and other marketable securities
—

 
726

 
726

Other investing activities, net
(40
)
 
2

 
(38
)
Net cash provided (used) by investing activities
(362
)
 
2

 
(360
)
Cash flows from financing activities:
 
 
 
 
 
Borrowings of debt
3,520

 
853

 
4,373

Repayments of debt
(3,056
)
 
(2,418
)
 
(5,474
)
Intergroup receipts (payments), net
2

 
(2
)
 
—

Repurchases of Liberty Interactive common stock
(1,089
)
 
—

 
(1,089
)
Shares repurchased by subsidiary
—

 
(145
)
 
(145
)
Shares issued by subsidiary
—

 
27

 
27

Taxes paid in lieu of shares issued for stock-based compensation
(21
)
 
(17
)
 
(38
)
Excess tax benefit from stock-based compensation
13

 
10

 
23

Other financing activities, net
(56
)
 
(1
)
 
(57
)
Net cash provided (used) by financing activities
(687
)
 
(1,693
)
 
(2,380
)
Effect of foreign currency rates on cash
(24
)
 
—

 
(24
)
Net increase (decrease) in cash and cash equivalents
(101
)
 
(1,303
)
 
(1,404
)
Cash and cash equivalents at beginning of period
699

 
1,961

 
2,660

Cash and cash equivalents at end period
$
598

 
658

 
1,256


9

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 (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



10

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:
 
 
 
 
 
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




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, LLC 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, 2013
 
December 31, 2012
 
amounts in millions
Interactive Group
 
 
 
    Other cost investments
$
4

 
4

         Total Interactive Group
4

 
4

Ventures Group
 
 
 
    Time Warner Inc.
306

 
1,042

    Time Warner Cable Inc.
741

 
531

Other AFS investments
262

 
143

TripAdvisor AFS securities
188

 
99

         Total Ventures Group
1,497

 
1,815

Consolidated Liberty
$
1,501

 
1,819


12


(3)
The following table presents information regarding certain equity method investments:
 
 
 
 
 
 
 
Share of earnings (losses)
 
December 31, 2013
 
Years ended December 31,
 
Percentage
ownership
 
Carrying
value
 
Market
value
 
 
2013
 
2012
 
2011
 
dollar amounts in millions
 
 
Interactive Group
 
 
 
 
 
 
 
 
 
 
 
    HSN, Inc. (3)
38
%
 
$
293

 
1,247

 
61

 
40

 
38

    Other
various

 
50

 
N/A

 
(13
)
 
(12
)
 
(15
)
        Total Interactive Group
 
 
343

 
 

 
48

 
28

 
23

Ventures Group
 
 
 
 
 
 
 
 
 
 
 
    Expedia, Inc. (1)(2)(3)
18
%
 
477

 
1,608

 
31

 
67

 
119

    TripAdvisor, Inc. (1)(4)
N/A

 
N/A

 
N/A

 
NA

 
38

 
NA

    Other (5)
various

 
417

 
N/A

 
(46
)
 
(48
)
 
(2
)
        Total Ventures Group
 
 
894

 
 
 
(15
)
 
57

 
117

Consolidated Liberty
 
 
$
1,237

 
 
 
33

 
85

 
140

___________________________
(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. Liberty owns an approximate 18% equity interest and 58% voting interest in Expedia. Liberty has entered into governance arrangements pursuant to which Mr. Barry Diller, Chairman of the Board and Senior Executive Officer of Expedia, may vote its interests of Expedia, subject to certain limitations. Additionally, through our governance arrangements with Mr. Diller, we have the right to appoint and have appointed 20% of the members of Expedia's board of directors, which is currently comprised of 10 members. Therefore, we determined based on these arrangements that we have significant influence through our arrangements with Expedia and have accounted for the investment as an equity method affiliate.
(3)
During the year ended December 31, 2013, Expedia, Inc. and HSN, Inc. paid dividends aggregating $13 million and $16 million, respectively, which were recorded as reductions to the investment balances.
(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 5 in the accompanying consolidated financial statements for additional details of the transactions related to TripAdvisor.
(5)
Liberty invested $300 million in a solar energy plant during 2013. Liberty expects to receive a portion of the initial investment back within a year as the entity expects to receive grant proceeds and other favorable tax attributes. Similar to some of Liberty's other alternative energy investments, the Company expects to record the Company's share of losses of the solar plant initially but expects to record the impacts of favorable tax attributes (primarily accelerated depreciation) as a current tax benefit with an offsetting deferred tax expense in the tax expense (benefit) line item in the Statement of Operations.



13


(4)
Debt attributed to the Interactive Group and the Ventures Group is comprised of the following:
 
 
 
December 31, 2013
 
 
 
Outstanding
principal
 
Carrying
value
 
 
 
amounts in millions
Interactive Group
 
 
 
 
Corporate level notes and debentures
 
 
 
 
 
8.5% Senior Debentures due 2029
$
287

 
285

 
 
8.25% Senior Debentures due 2030
504

 
501

 
 
1% Exchangeable Senior Debentures due 2043
400

 
423

 
Subsidiary level notes and facilities
 
 
 
 
 
QVC 7.5% Senior Secured Notes due 2019
769

 
761

 
 
QVC 7.375% Senior Secured Notes due 2020
500

 
500

 
 
QVC 5.125% Senior Secured Notes due 2022
500

 
500

 
 
QVC 4.375% Senior Secured Notes due 2023
750

 
750

 
 
QVC 5.95% Senior Secured Notes due 2043
300

 
300

 
 
QVC Bank Credit Facilities
922

 
922

 
 
Other subsidiary debt
141

 
141

 
      Total Interactive Group
5,073

 
5,083

Ventures Group
 
 
 
 
Corporate level debentures
 
 
 
 
 
4% Exchangeable Senior Debentures due 2029
439

 
284

 
 
3.75% Exchangeable Senior Debentures due 2030
439

 
270

 
 
3.5% Exchangeable Senior Debentures due 2031
363

 
316

 
 
0.75% Exchangeable Senior Debentures due 2043
850

 
1,062

 
Subsidiary level notes and facilities
 
 
 
 
 
TripAdvisor Debt Facilities
369

 
369

 
      Total Ventures Group
2,460

 
2,301

 
 
Total consolidated Liberty debt
$
7,533

 
7,384

 
 
Less current maturities
 
 
(978
)
 
 
Total long-term debt
 
 
$
6,406


(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 $11 million and $5 million for the years ended December 31, 2013 and 2012, 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,
 
2013
 
2012
 
2011
 
amounts in millions
Current:
 
 
 
 
 
Federal
$
(361
)
 
(365
)
 
(310
)
State and local
(26
)
 
(26
)
 
(32
)
Foreign
(82
)
 
(140
)
 
(120
)
 
$
(469
)
 
(531
)
 
(462
)
Deferred:
 
 
 
 
 
Federal
$
196

 
152

 
103

State and local
(58
)
 
20

 
2

Foreign
(7
)
 
7

 
4

 
131

 
179

 
109

Income tax benefit (expense)
$
(338
)
 
(352
)
 
(353
)

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,
 
2013
 
2012
 
2011
 
amounts in millions
Computed expected tax benefit (expense)
$
(288
)
 
(309
)
 
(327
)
State and local income taxes, net of federal income taxes
(22
)
 
(4
)
 
(17
)
Foreign taxes, net of foreign tax credits
(7
)
 
5

 
(3
)
Change in valuation allowance affecting tax expense
(26
)
 
(8
)
 
(15
)
Impairment of intangible assets
(2
)
 
(29
)
 
—

Other, net
7

 
(7
)
 
9

Income tax benefit (expense)
$
(338
)
 
(352
)
 
(353
)


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,
 
2013
 
2012
 
amounts in millions
Deferred tax assets:
 
 
 
Net operating and capital loss carryforwards
$
68

 
92

Foreign tax credit carryforwards
129

 
87

Accrued stock compensation
26

 
11

Other accrued liabilities
79

 
80

Investments
—

 
16

Other future deductible amounts
130

 
133

Deferred tax assets
432

 
419

Valuation allowance
(51
)
 
(40
)
Net deferred tax assets
381

 
379

 
 
 
 
Deferred tax liabilities:
 
 
 
Intangible assets
1,419

 
1,541

Deferred tax liabilities
1,419

 
1,541

Net deferred tax liabilities
$
1,038

 
1,162


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

 
December 31,
 
2013
 
2012
 
amounts in millions
Current deferred tax (assets) liabilities
$
(170
)
 
(156
)
Long-term deferred tax liabilities
1,208

 
1,318

Net deferred tax liabilities
$
1,038

 
1,162


Ventures Group

Income tax benefit (expense) consists of:

 
Years ended December 31,
 
2013
 
2012
 
2011
 
amounts in millions
Current:
 
 
 
 
 
Federal
$
233

 
151

 
154

State and local
(10
)
 
(1
)
 
—

Foreign
(20
)
 
—

 
—

 
$
203

 
150

 
154

Deferred:
 
 
 
 
 
Federal
$
(207
)
 
(183
)
 
(145
)
State and local
180

 
(9
)
 
(8
)
Foreign
32

 
—

 
—

 
5

 
(192
)
 
(153
)
Income tax benefit (expense)
$
208

 
(42
)
 
1



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,
 
2013
 
2012
 
2011
 
amounts in millions
Computed expected tax benefit (expense)
$
39

 
(386
)
 
(2
)
State and local income taxes, net of federal income taxes
5

 
(7
)
 
(5
)
Foreign taxes, net of foreign tax credits
15

 
—

 
—

Impact of change in state rate on deferred taxes
109

 
—

 
—

Consolidation of previously held equity method affiliate
—

 
294

 
—

Change in valuation allowance affecting tax expense
(6
)
 
—

 
—

Dividends received deductions
—

 
10

 
5

Alternative energy tax credits
54

 
48

 
3

Other, net
(8
)
 
(1
)
 
—

Income tax benefit (expense)
$
208

 
(42
)
 
1


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,
 
2013
 
2012
 
amounts in millions
Deferred tax assets:
 
 
 
Net operating and capital loss carryforwards
$
34

 
18

Other
48

 
36

Deferred tax assets
82

 
54

Valuation allowance
(17
)
 
(12
)
Net deferred tax assets
65

 
42

 
 
 
 
Deferred tax liabilities:
 
 
 
Investments
569

 
508

Intangible assets
862

 
1,209

Discount on exchangeable debentures
965

 
890

Deferred gain on debt retirements
313

 
321

Other
82

 
73

Deferred tax liabilities
2,791

 
3,001

Net deferred tax liabilities
$
2,726

 
2,959


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

 
December 31,
 
2013
 
2012
 
amounts in millions
Current deferred tax asset of TripAdvisor (1)
$
(5
)
 
—

Current deferred tax liabilities
1,095

 
1,068

Long-term deferred tax liabilities
1,636

 
1,891

Net deferred tax liabilities
$
2,726

 
2,959


(1) TripAdvisor's deferred tax asset is not offset with Liberty's deferred tax liabilities as TripAdvisor is not included in the group tax return of Liberty. TripAdvisor's deferred tax asset has been included in other current assets in the accompanying consolidated balance sheet.





17

Intergroup payable (receivable)

The intergroup balance, at December 31, 2013, is primarily a result of timing of tax benefits taken by the Ventures group as a result of the Solar investment made in the third quarter and the resulting cash payments to be made from the Interactive group.
(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.

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