Qurate Retail, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Investments In Affiliates Accounted For Using The Equity Method

Investments In Affiliates Accounted For Using The Equity Method

9 Months Ended

Sep. 30, 2011

Investments In Affiliates Accounted For Using The Equity Method

Investments In Affiliates Accounted For Using The Equity Method

Investments in Affiliates Accounted for Using the Equity Method

Liberty has various investments accounted for using the equity method. The following table includes Liberty's carrying amount and percentage ownership of the more significant investments in affiliates at September 30, 2011 and the carrying amount at December 31, 2010:



	September 30, 2011						December 31, 2010
	Percentage ownership		Market value		Carrying amount		Carrying amount
			dollars in millions
Expedia	25	%	$	1,782	$	795	710
Other	various		N/A		271		239
					$	1,066	949

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



	Three months ended				Nine months ended
	September 30,				September 30,
	2011		2010		2011	2010
	amounts in millions
Expedia	$	56	43		104	85
Other	6		(7	)	15	8
	$	62	36		119	93

Expedia

Summarized unaudited financial information for Expedia is as follows:

Expedia Consolidated Balance Sheets



	September 30, 2011		December 31, 2010
	amounts in millions
Current assets	$	2,598	1,702
Property and equipment, net	341		277
Goodwill	3,653		3,642
Intangible assets	779		798
Other assets	306		232
Total assets	$	7,677	6,651
Current liabilities	$	2,616	1,889
Deferred income taxes	258		248
Long-term debt	1,645		1,645
Other liabilities	120		132
Noncontrolling interest	140		64
Equity	2,898		2,673
Total liabilities and equity	$	7,677	6,651

Expedia Consolidated Statements of Operations



	Nine months ended
	September 30,
	2011			2010
	amounts in millions
Revenue	$	2,987		2,540
Cost of revenue	(586		)	(517	)
Gross profit	2,401			2,023
Selling, general and administrative expenses	(1,745		)	(1,415	)
Amortization	(23		)	(25	)
Restructuring charges and other	(8		)	—
Operating income	625			583
Interest expense	(95		)	(68	)
Other income (expense), net	12			(9	)
Income tax (expense) benefit	(138		)	(152	)
Net earnings (loss)	404			354
Less net earnings (loss) attributable to noncontrolling interests	(2		)	(4	)
Net earnings (loss) attributable to Expedia, Inc.	$	402		350

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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