| 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, fair value, and percentage ownership of the more significant investments in affiliates at June 30, 2013 and the carrying amount at December 31, 2012:
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June 30, 2013 |
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December 31, 2012 |
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Percentage
ownership
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Fair value (Level 1) |
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Carrying
amount
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Carrying
amount
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dollars in millions |
Interactive Group |
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HSN, Inc. |
37 |
% |
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$ |
1,075 |
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$ |
270 |
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|
242 |
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Other |
various |
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|
NA |
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|
52 |
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|
62 |
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Total Interactive Group |
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|
322 |
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|
304 |
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Ventures Group |
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Expedia, Inc. (1) |
17 |
% |
|
1,388 |
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|
438 |
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|
431 |
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Other |
various |
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|
NA |
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|
123 |
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|
116 |
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Total Ventures Group |
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|
561 |
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|
547 |
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Consolidated Liberty |
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$ |
883 |
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|
851 |
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(1) |
Liberty's 22% owned consolidated subsidiary TripAdvisor, Inc. earned revenue of approximately $54 million and $115 million for the three and six months ended June 30, 2013, respectively, and $56 million and $107 million for the three and six months ended June 30, 2012, respectively, from Expedia, Inc. (TripAdvisor's former parent).
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The following table presents Liberty's share of earnings (losses) of affiliates:
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Three months ended June 30, |
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Six months ended June 30, |
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2013 |
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2012 |
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2013 |
|
2012 |
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amounts in millions |
Interactive Group |
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HSN, Inc. |
$ |
11 |
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|
9 |
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31 |
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|
24 |
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Other |
(7 |
) |
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(2 |
) |
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(11 |
) |
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(4 |
) |
Total Interactive Group |
4 |
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7 |
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20 |
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20 |
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Ventures Group |
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Expedia, Inc. |
10 |
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26 |
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(10 |
) |
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24 |
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TripAdvisor, Inc. (1) |
NA |
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12 |
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NA |
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23 |
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Other |
(7 |
) |
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(10 |
) |
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(14 |
) |
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(21 |
) |
Total Ventures Group |
3 |
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28 |
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(24 |
) |
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26 |
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Consolidated Liberty |
$ |
7 |
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|
35 |
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(4 |
) |
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46 |
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(1) |
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. Following the date of this transaction, TripAdvisor is accounted for as a consolidated subsidiary. See note 1 for additional details of this transaction.
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Expedia
Summarized unaudited financial information for Expedia is as follows:
Expedia Consolidated Balance Sheets
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June 30,
2013 |
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December 31, 2012 |
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amounts in millions |
Current assets |
$ |
3,264 |
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2,615 |
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Property and equipment, net |
441 |
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409 |
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Goodwill |
3,643 |
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3,016 |
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Intangible assets, net |
1,145 |
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|
821 |
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Other assets |
251 |
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|
224 |
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Total assets |
$ |
8,744 |
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|
7,085 |
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Current liabilities |
$ |
4,211 |
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|
2,982 |
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Deferred income taxes |
461 |
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|
324 |
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Long-term debt |
1,249 |
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|
1,249 |
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Other liabilities |
127 |
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128 |
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Redeemable noncontrolling interests |
358 |
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|
13 |
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Noncontrolling interest |
110 |
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|
109 |
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Equity |
2,228 |
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|
2,280 |
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Total liabilities and equity |
$ |
8,744 |
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|
7,085 |
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Expedia Consolidated Statements of Operations
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Three months ended
June 30, |
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Six months ended
June 30, |
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2013 |
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2012 |
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2013 |
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2012 |
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amounts in millions |
Revenue |
$ |
1,205 |
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|
1,040 |
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|
2,217 |
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$ |
1,856 |
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Cost of revenue |
(262 |
) |
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(230 |
) |
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(513 |
) |
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(430 |
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Gross profit |
943 |
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|
810 |
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1,704 |
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1,426 |
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Selling, general and administrative expenses |
(824 |
) |
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(644 |
) |
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(1,550 |
) |
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(1,208 |
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Amortization |
(18 |
) |
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(9 |
) |
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(31 |
) |
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(12 |
) |
Restructuring charges and other |
(6 |
) |
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(3 |
) |
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(134 |
) |
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(3 |
) |
Operating income (loss) |
95 |
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|
154 |
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(11 |
) |
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203 |
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Interest expense |
(21 |
) |
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(22 |
) |
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(43 |
) |
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(43 |
) |
Other income (expense), net |
14 |
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|
3 |
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23 |
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2 |
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Income tax (expense) benefit |
(25 |
) |
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(29 |
) |
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(13 |
) |
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(34 |
) |
Income (loss) from continuing operations |
63 |
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|
106 |
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(44 |
) |
|
128 |
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Earnings (loss) from discontinued operations |
— |
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— |
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— |
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(24 |
) |
Net earnings (loss) |
63 |
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|
106 |
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(44 |
) |
|
104 |
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Less net earnings (loss) attributable to noncontrolling interests |
8 |
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(1 |
) |
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11 |
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(2 |
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Net earnings (loss) attributable to Expedia, Inc. shareholders |
$ |
71 |
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|
105 |
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(33 |
) |
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$ |
102 |
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