Exhibit 99.3

 

Liberty Interactive Corporation

Condensed Pro Forma Consolidated Financial Statements

 

(unaudited)

 

On August 27, 2014, Liberty Interactive Corporation (“Liberty” or the “Company”) completed the distribution to the stockholders of Liberty shares of a wholly-owned subsidiary, Liberty TripAdvisor Holdings, Inc. (‘‘TripCo’’), which held the subsidiaries TripAdvisor, Inc. (‘‘TripAdvisor’’) and BuySeasons, Inc. which includes the retail businesses BuyCostumes.com and Celebrate Express (‘‘BuySeasons’’) (the ‘‘Trip Spin-Off’’), both of which operate as standalone operating entities. The transaction was effected as a pro-rata dividend of shares of TripCo to the stockholders of Series A and Series B Liberty Ventures common stock of Liberty.

 

The following unaudited condensed pro forma consolidated financial statements have been prepared giving effect to the Trip Spin-Off as if it occurred as of December 31, 2013 and June 30, 2014 for the condensed pro forma consolidated balance sheets and January 1, 2013 for the condensed pro forma consolidated statements of operations.  The unaudited condensed pro forma consolidated financial statements do not purport to represent what Liberty's financial position actually would have been had the Trip Spin-Off occurred on the dates indicated or to project Liberty's operating results for any future period.  The unaudited condensed pro forma consolidated financial statements should be read in conjunction with the publicly available information of Liberty, including the Form 10-K, as filed on February 28, 2014 with the Securities and Exchange Commission (the “SEC”) and the Form 10-Q as filed on August 5, 2014 with the SEC.

 

 

1

 


 

Liberty Interactive Corporation

Condensed Pro Forma Consolidated Balance Sheet

December 31, 2013

(unaudited)

 

 

 

 

 

 

 

 

Liberty

 

Less:

 

Liberty

 

Interactive

 

TripCo

 

Interactive

 

historical (1)

 

historical (2)

 

pro forma

Assets

 

 

 

 

 

Cash and cash equivalents

$
1,256 

 

354 

 

902 

Other current assets

3,170 

 

289 

 

2,881 

Investments in available-for-sale securities

1,501 

 

188 

 

1,313 

Investments in affiliates, accounted for using the equity method

1,237 

 

--

 

1,237 

Property and equipment, net

1,247 

 

39 

 

1,208 

Intangible assets not subject to amortization

13,675 

 

5,292 

 

8,383 

Intangible assets subject to amortization, net

2,492 

 

908 

 

1,584 

Other assets, at cost, net of accumulated amortization

98 

 

19 

 

79 

Total assets

$
24,676 

 

7,089 

 

17,857 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities

$
3,756 

 

311 

 

3,445 

Long-term debt

6,406 

 

300 

 

6,106 

Deferred income tax liabilities

2,844 

 

853 

 

1,991 

Other liabilities

235 

 

44 

 

191 

Total liabilities

13,241 

 

1,508 

 

11,733 

 

 

 

 

 

 

Total stockholders' equity

6,936 

 

1,208 

 

5,728 

Noncontrolling interests in equity of subsidiaries

4,499 

 

4,373 

 

126 

Total equity

11,435 

 

5,581 

 

5,854 

 

 

 

 

 

 

Total liabilities and equity

$
24,676 

 

7,089 

 

17,587 

 

 

2

 


 

 

Liberty Interactive Corporation

Condensed Pro Forma Consolidated Balance Sheet

June 30, 2014

(unaudited)

 

 

Liberty

 

Less:

 

Liberty

 

Interactive

 

TripCo

 

Interactive

 

historical (1)

 

historical (2)

 

pro forma

Assets

 

 

 

 

 

Cash and cash equivalents

$
1,833 

 

589 

 

1,244 

Other current assets

2,924 

 

277 

 

2,647 

Investments in available-for-sale securities

1,275 

 

83 

 

1,192 

Investments in affiliates, accounted for using the equity method

1,236 

 

--

 

1,236 

Property and equipment, net

1,276 

 

98 

 

1,178 

Intangible assets not subject to amortization

13,788 

 

5,403 

 

8,385 

Intangible assets subject to amortization, net

2,267 

 

872 

 

1,395 

Other assets, at cost, net of accumulated amortization

123 

 

33 

 

90 

Total assets

$
24,722 

 

7,355 

 

17,367 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities

$
3,798 

 

460 

 

3,338 

Long-term debt

6,620 

 

280 

 

6,340 

Deferred income tax liabilities

2,715 

 

836 

 

1,879 

Other liabilities

333 

 

112 

 

221 

Total liabilities

13,466 

 

1,688 

 

11,778 

 

 

 

 

 

 

Total stockholders' equity

6,668 

 

1,195 

 

5,473 

Noncontrolling interests in equity of subsidiaries

4,588 

 

4,472 

 

116 

Total equity

11,256 

 

5,667 

 

5,589 

 

 

 

 

 

 

Total liabilities and equity

$
24,722 

 

7,355 

 

17,367 

 

3

 


 

Liberty Interactive Corporation

Condensed Pro Forma Consolidated Statement of Operations

Year ended December 31, 2013

(unaudited)

 

 

Liberty

 

Less:

 

Liberty

 

Interactive

 

TripCo

 

Interactive

 

historical (1)

 

historical (2)

 

pro forma

 

 

 

 

 

 

Revenue

11,252 

 

1,034 

 

10,218 

Operating costs and expenses:

 

 

 

 

 

Cost of sales

6,602 

 

87 

 

6,515 

Operating and Selling, general and administrative, including stock-based compensation

2,587 

 

649 

 

1,938 

Depreciation and amortization

943 

 

315 

 

628 

 

10,132 

 

1,051 

 

9,081 

Operating income

1,120 

 

(17)

 

1,137 

Interest expense

(373)

 

(12)

 

(361)

Share of earnings (loss)

33 

 

--

 

33 

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

(22)

 

--

 

(22)

Other income (expense)

(48)

 

 

(49)

Earnings (loss) from continuing operations before income taxes

710 

 

(28)

 

738 

Income tax (expense) benefit

(130)

 

55 

 

(185)

Net earnings (loss)

580 

 

27 

 

553 

Less net loss attributable to the noncontrolling interests

79 

 

34 

 

45 

Net earnings (loss) attributable to:

    Liberty stockholders

501 

 

(7)

 

508 

Net earnings (loss) attributable to:

    Liberty Interactive stockholders

438 

 

(25)

 

463 

  Liberty Ventures stockholders

63 

 

18 

 

45 

 

 

 

 

 

 

 

 

 

 

 

 

ProForma basic net earnings (loss) attributable to Liberty stockholders per common share:

 

 

 

 

 

Series A and Series B Liberty Interactive

$
0.84 

 

 

 

0.89 

Series A and Series B Liberty Ventures

$
0.85 

 

 

 

0.61 

 

 

 

 

 

 

 

 

 

 

 

 

ProForma diluted net earnings (loss) attributable to Liberty stockholders per common share:

 

 

 

 

 

Series A and Series B Liberty Interactive

$
0.83 

 

 

 

0.88 

Series A and Series B Liberty Ventures

$
0.85 

 

 

 

0.61 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Interactive commons stock

 

 

 

 

 

Basic

519 

 

 

 

519 

Diluted

527 

 

 

 

527 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Ventures commons stock

 

 

 

 

 

Basic

74 

 

 

 

74 

Diluted

74 

 

 

 

74 

4

 


 

 

Liberty Interactive Corporation

Condensed Pro Forma Consolidated Statement of Operations

Six months ended June 30, 2014

(unaudited)

 

 

Liberty

 

Less:

 

Liberty

 

Interactive

 

TripCo

 

Interactive

 

historical (1)

 

historical (2)

 

pro forma

 

 

 

 

 

 

Revenue

5,546 

 

629 

 

4,917 

Operating costs and expenses:

 

 

 

 

 

Cost of sales

3,134 

 

20 

 

3,114 

Operating and Selling, general and administrative and other, including stock-based compensation

1,378 

 

407 

 

971 

Depreciation and amortization

469 

 

142 

 

327 

 

4,981 

 

569 

 

4,412 

Operating income

565 

 

60 

 

505 

Interest expense

(199)

 

(5)

 

(194)

Share of earnings (loss)

 

--

 

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

(66)

 

--

 

(66)

Other income (expense)

11 

 

--

 

11 

Earnings (loss) from continuing operations before income taxes

313 

 

55 

 

258 

Income tax (expense) benefit

(97)

 

(15)

 

(82)

Net earnings (loss)

216 

 

40 

 

176 

Less net loss attributable to the noncontrolling interests

57 

 

39 

 

18 

Net earnings (loss) attributable to:

    Liberty stockholders

159 

 

 

158 

Net earnings (loss) attributable to:

    Liberty Interactive stockholders

215 

 

(15)

 

230 

  Liberty Ventures stockholders

(56)

 

16 

 

(72)

 

 

 

 

 

 

 

 

 

 

 

 

ProForma basic net earnings (loss) attributable to Liberty stockholders per common share:

Series A and Series B Liberty Interactive

$
0.44 

 

 

 

0.47 

Series A and Series B Liberty Ventures

$
(0.77)

 

 

 

(0.99)

 

 

 

 

 

 

 

 

 

 

 

 

ProForma diluted net earnings (loss) attributable to Liberty stockholders per common share:

Series A and Series B Liberty Interactive

$
0.43 

 

 

 

0.46 

Series A and Series B Liberty Ventures

$
(0.77)

 

 

 

(0.99)

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Interactive commons stock

 

 

 

 

 

Basic

490 

 

 

 

490 

Diluted

500 

 

 

 

500 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Ventures commons stock

73 

 

 

 

73 

Basic

 

 

 

 

 

Diluted

74 

 

 

 

74 

 

 

5

 


 

Liberty Interactive Corporation

Notes to Condensed Pro Forma Consolidated Financial Statements

(unaudited)

 

 

(1)

Represents the historical financial position and results of operations of Liberty.  Such amounts were derived from the historical consolidated financial statements of Liberty as filed on Form 10-K on February 28, 2014 and Form 10-Q on August 5, 2014, respectively, with the SEC.  

 

(2)

Represents the historical financial position and results of operations of TripCo.  Such amounts were derived from the historical consolidated financial statements of TripCo as filed on Form S-1 as amended on August 8, 2014 with the SEC and the Form 10-Q filed on September 25, 2014.  

 

 

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