| Financial Information for Tracking Stock Groups |
BALANCE SHEET INFORMATION
June 30, 2014
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1) |
|
|
|
|
|
Interactive
Group
|
|
Ventures Group |
|
Inter-group
eliminations
|
|
Consolidated
Liberty
|
|
amounts in millions |
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
692 |
|
|
1,141 |
|
|
— |
|
|
1,833 |
|
Trade and other receivables, net |
785 |
|
|
188 |
|
|
— |
|
|
973 |
|
Inventory, net |
1,181 |
|
|
— |
|
|
— |
|
|
1,181 |
|
Short term marketable securities |
11 |
|
|
646 |
|
|
— |
|
|
657 |
|
Other current assets |
252 |
|
|
20 |
|
|
(159 |
) |
|
113 |
|
Total current assets |
2,921 |
|
|
1,995 |
|
|
(159 |
) |
|
4,757 |
|
Investments in available-for-sale securities and other cost investments (note 2) |
4 |
|
|
1,271 |
|
|
— |
|
|
1,275 |
|
Investments in affiliates, accounted for using the equity method (note 3) |
363 |
|
|
873 |
|
|
— |
|
|
1,236 |
|
Property and equipment, net |
1,183 |
|
|
93 |
|
|
— |
|
|
1,276 |
|
Intangible assets not subject to amortization, net |
8,389 |
|
|
5,399 |
|
|
— |
|
|
13,788 |
|
Intangible assets subject to amortization, net |
1,396 |
|
|
871 |
|
|
— |
|
|
2,267 |
|
Other assets, at cost, net of accumulated amortization |
90 |
|
|
33 |
|
|
— |
|
|
123 |
|
Total assets |
$ |
14,346 |
|
|
10,535 |
|
|
(159 |
) |
|
24,722 |
|
Liabilities and Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Intergroup payable (receivable) (note 7) |
$ |
53 |
|
|
(53 |
) |
|
— |
|
|
— |
|
Accounts payable |
571 |
|
|
135 |
|
|
— |
|
|
706 |
|
Accrued liabilities |
681 |
|
|
123 |
|
|
— |
|
|
804 |
|
Current portion of debt (note 4) |
39 |
|
|
1,009 |
|
|
— |
|
|
1,048 |
|
Deferred tax liabilities |
— |
|
|
1,137 |
|
|
(159 |
) |
|
978 |
|
Other current liabilities |
199 |
|
|
63 |
|
|
— |
|
|
262 |
|
Total current liabilities |
1,543 |
|
|
2,414 |
|
|
(159 |
) |
|
3,798 |
|
Long-term debt (note 4) |
5,195 |
|
|
1,425 |
|
|
— |
|
|
6,620 |
|
Deferred income tax liabilities |
1,100 |
|
|
1,615 |
|
|
— |
|
|
2,715 |
|
Other liabilities |
222 |
|
|
111 |
|
|
— |
|
|
333 |
|
Total liabilities |
8,060 |
|
|
5,565 |
|
|
(159 |
) |
|
13,466 |
|
Equity/Attributed net assets (liabilities) |
6,164 |
|
|
504 |
|
|
— |
|
|
6,668 |
|
Noncontrolling interests in equity of subsidiaries |
122 |
|
|
4,466 |
|
|
— |
|
|
4,588 |
|
Total liabilities and equity |
$ |
14,346 |
|
|
10,535 |
|
|
(159 |
) |
|
24,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1) |
|
|
|
Interactive Group |
|
Ventures Group |
|
Consolidated Liberty |
|
amounts in millions |
Revenue: |
|
|
|
|
|
Net retail sales |
$ |
4,942 |
|
|
— |
|
|
4,942 |
|
Other revenue |
— |
|
|
604 |
|
|
604 |
|
Total revenue |
4,942 |
|
|
604 |
|
|
5,546 |
|
Operating costs and expenses: |
|
|
|
|
|
Cost of sales |
3,134 |
|
|
— |
|
|
3,134 |
|
Operating, including stock-based compensation (note 5) |
436 |
|
|
99 |
|
|
535 |
|
Selling, general and administrative, including stock-based compensation (note 5) |
537 |
|
|
299 |
|
|
836 |
|
Impairment of intangible assets |
7 |
|
|
— |
|
|
7 |
|
Depreciation and amortization |
329 |
|
|
140 |
|
|
469 |
|
|
4,443 |
|
|
538 |
|
|
4,981 |
|
Operating income (loss) |
499 |
|
|
66 |
|
|
565 |
|
Other income (expense): |
|
|
|
|
|
Interest expense |
(156 |
) |
|
(43 |
) |
|
(199 |
) |
Share of earnings (losses) of affiliates, net (note 3) |
28 |
|
|
(26 |
) |
|
2 |
|
Realized and unrealized gains (losses) on financial instruments, net |
7 |
|
|
(73 |
) |
|
(66 |
) |
Other, net |
— |
|
|
11 |
|
|
11 |
|
|
(121 |
) |
|
(131 |
) |
|
(252 |
) |
Earnings (loss) before income taxes |
378 |
|
|
(65 |
) |
|
313 |
|
Income tax benefit (expense) |
(144 |
) |
|
47 |
|
|
(97 |
) |
Net earnings (loss) |
234 |
|
|
(18 |
) |
|
216 |
|
Less net earnings (loss) attributable to noncontrolling interests |
19 |
|
|
38 |
|
|
57 |
|
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders |
$ |
215 |
|
|
(56 |
) |
|
159 |
|
STATEMENT OF OPERATIONS INFORMATION
Six months ended June 30, 2013
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1) |
|
|
|
Interactive Group |
|
Ventures Group |
|
Consolidated Liberty |
|
amounts in millions |
Revenue: |
|
|
|
|
|
Net retail sales |
$ |
4,834 |
|
|
— |
|
|
4,834 |
|
Other revenue |
— |
|
|
477 |
|
|
477 |
|
Total revenue |
4,834 |
|
|
477 |
|
|
5,311 |
|
Operating costs and expenses: |
|
|
|
|
|
Cost of sales |
3,074 |
|
|
— |
|
|
3,074 |
|
Operating |
415 |
|
|
72 |
|
|
487 |
|
Selling, general and administrative, including stock-based compensation (note 5) |
506 |
|
|
222 |
|
|
728 |
|
Depreciation and amortization |
311 |
|
|
156 |
|
|
467 |
|
|
4,306 |
|
|
450 |
|
|
4,756 |
|
Operating income (loss) |
528 |
|
|
27 |
|
|
555 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
(154 |
) |
|
(47 |
) |
|
(201 |
) |
Share of earnings (losses) of affiliates, net (note 3) |
20 |
|
|
(24 |
) |
|
(4 |
) |
Realized and unrealized gains (losses) on financial instruments, net |
17 |
|
|
(81 |
) |
|
(64 |
) |
Other, net |
(55 |
) |
|
— |
|
|
(55 |
) |
|
(172 |
) |
|
(152 |
) |
|
(324 |
) |
Earnings (loss) before income taxes |
356 |
|
|
(125 |
) |
|
231 |
|
Income tax benefit (expense) |
(127 |
) |
|
99 |
|
|
(28 |
) |
Net earnings (loss) |
229 |
|
|
(26 |
) |
|
203 |
|
Less net earnings (loss) attributable to noncontrolling interests |
25 |
|
|
31 |
|
|
56 |
|
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders |
$ |
204 |
|
|
(57 |
) |
|
147 |
|
STATEMENT OF CASH FLOWS INFORMATION
Six months ended June 30, 2014
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1) |
|
|
|
Interactive
Group
|
|
Ventures Group |
|
Consolidated
Liberty
|
|
amounts in millions |
Cash flows from operating activities: |
|
|
|
|
|
Net earnings (loss) |
$ |
234 |
|
|
(18 |
) |
|
216 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
Depreciation and amortization |
329 |
|
|
140 |
|
|
469 |
|
Stock-based compensation |
48 |
|
|
37 |
|
|
85 |
|
Cash payments for stock based compensation |
(5 |
) |
|
(1 |
) |
|
(6 |
) |
Excess tax benefit from stock-based compensation |
(9 |
) |
|
(15 |
) |
|
(24 |
) |
Share of losses (earnings) of affiliates, net |
(28 |
) |
|
26 |
|
|
(2 |
) |
Cash receipts from return on equity investments |
10 |
|
|
10 |
|
|
20 |
|
Realized and unrealized gains (losses) on financial instruments, net |
(7 |
) |
|
73 |
|
|
66 |
|
Impairment of intangible assets |
7 |
|
|
— |
|
|
7 |
|
Deferred income tax (benefit) expense |
(101 |
) |
|
(1 |
) |
|
(102 |
) |
Other, net |
5 |
|
|
2 |
|
|
7 |
|
Intergroup tax allocation |
105 |
|
|
(105 |
) |
|
— |
|
Intergroup tax payment |
(276 |
) |
|
276 |
|
|
— |
|
Changes in operating assets and liabilities |
|
|
|
|
|
Current and other assets |
308 |
|
|
(65 |
) |
|
243 |
|
Payables and other current liabilities |
(50 |
) |
|
158 |
|
|
108 |
|
Net cash provided (used) by operating activities |
570 |
|
|
517 |
|
|
1,087 |
|
Cash flows from investing activities: |
|
|
|
|
|
Cash proceeds from dispositions |
— |
|
|
25 |
|
|
25 |
|
Investments in and loans to cost and equity investees |
(2 |
) |
|
(29 |
) |
|
(31 |
) |
Capital expended for property and equipment |
(87 |
) |
|
(42 |
) |
|
(129 |
) |
Purchases of short-term and other marketable securities |
(38 |
) |
|
(438 |
) |
|
(476 |
) |
Sales of short term and other marketable securities |
27 |
|
|
614 |
|
|
641 |
|
Acquisitions, net of cash acquired |
— |
|
|
(152 |
) |
|
(152 |
) |
Other investing activities, net |
(10 |
) |
|
15 |
|
|
5 |
|
Net cash provided (used) by investing activities |
(110 |
) |
|
(7 |
) |
|
(117 |
) |
Cash flows from financing activities: |
|
|
|
|
|
Borrowings of debt |
1,895 |
|
|
5 |
|
|
1,900 |
|
Repayments of debt |
(1,739 |
) |
|
(25 |
) |
|
(1,764 |
) |
Intergroup receipts (payments), net |
2 |
|
|
(2 |
) |
|
— |
|
Repurchases of Liberty common stock |
(478 |
) |
|
— |
|
|
(478 |
) |
Minimum withholding taxes on net settlements of stock-based compensation |
(14 |
) |
|
(23 |
) |
|
(37 |
) |
Excess tax benefit from stock-based compensation |
9 |
|
|
15 |
|
|
24 |
|
Other financing activities, net |
(36 |
) |
|
— |
|
|
(36 |
) |
Net cash provided (used) by financing activities |
(361 |
) |
|
(30 |
) |
|
(391 |
) |
Effect of foreign currency rates on cash |
(5 |
) |
|
3 |
|
|
(2 |
) |
Net increase (decrease) in cash and cash equivalents |
94 |
|
|
483 |
|
|
577 |
|
Cash and cash equivalents at beginning of period |
598 |
|
|
658 |
|
|
1,256 |
|
Cash and cash equivalents at end period |
$ |
692 |
|
|
1,141 |
|
|
1,833 |
|
|
STATEMENT OF CASH FLOWS INFORMATION
Six months ended June 30, 2013
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1) |
|
|
|
Interactive
Group
|
|
Ventures Group |
|
Consolidated
Liberty
|
|
amounts in millions |
Cash flows from operating activities: |
|
|
|
|
|
Net earnings (loss) |
$ |
229 |
|
|
(26 |
) |
|
203 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
Depreciation and amortization |
311 |
|
|
156 |
|
|
467 |
|
Stock-based compensation |
53 |
|
|
33 |
|
|
86 |
|
Cash payments for stock based compensation |
(4 |
) |
|
(1 |
) |
|
(5 |
) |
Excess tax benefits on stock-based compensation |
(7 |
) |
|
(5 |
) |
|
(12 |
) |
Share of losses (earnings) of affiliates, net |
(20 |
) |
|
24 |
|
|
4 |
|
Cash receipts from return on equity investments |
7 |
|
|
8 |
|
|
15 |
|
Realized and unrealized gains (losses) on financial instruments, net |
(17 |
) |
|
81 |
|
|
64 |
|
(Gains) losses on transactions, net |
1 |
|
|
1 |
|
|
2 |
|
Deferred income tax (benefit) expense |
(86 |
) |
|
(181 |
) |
|
(267 |
) |
Other, net |
6 |
|
|
8 |
|
|
14 |
|
Intergroup tax allocation |
(33 |
) |
|
33 |
|
|
— |
|
Intergroup tax receipts (payments) |
94 |
|
|
(94 |
) |
|
— |
|
Changes in operating assets and liabilities |
|
|
|
|
|
Current and other assets |
324 |
|
|
(74 |
) |
|
250 |
|
Payables and other current liabilities |
(476 |
) |
|
102 |
|
|
(374 |
) |
Net cash provided (used) by operating activities |
382 |
|
|
65 |
|
|
447 |
|
Cash flows from investing activities: |
|
|
|
|
|
Cash proceeds from dispositions |
— |
|
|
1,136 |
|
|
1,136 |
|
Investments in and loans to cost and equity investees |
— |
|
|
(51 |
) |
|
(51 |
) |
Capital expended for property and equipment |
(111 |
) |
|
(25 |
) |
|
(136 |
) |
Purchases of short-term and other marketable securities |
— |
|
|
(1,116 |
) |
|
(1,116 |
) |
Sales of short term and other marketable securities |
2 |
|
|
442 |
|
|
444 |
|
Acquisitions, net of cash acquired |
— |
|
|
(32 |
) |
|
(32 |
) |
Other investing activities, net |
(7 |
) |
|
(3 |
) |
|
(10 |
) |
Net cash provided (used) by investing activities |
(116 |
) |
|
351 |
|
|
235 |
|
Cash flows from financing activities: |
|
|
|
|
|
Borrowings of debt |
2,246 |
|
|
848 |
|
|
3,094 |
|
Repayments of debt |
(2,055 |
) |
|
(2,342 |
) |
|
(4,397 |
) |
Shares repurchased by subsidiary |
— |
|
|
(42 |
) |
|
(42 |
) |
Shares issued by subsidiary |
— |
|
|
19 |
|
|
19 |
|
Intergroup receipts (payments), net |
2 |
|
|
(2 |
) |
|
— |
|
Repurchases of Liberty common stock |
(499 |
) |
|
— |
|
|
(499 |
) |
Excess tax benefit from stock-based compensation |
7 |
|
|
5 |
|
|
12 |
|
Minimum withholding taxes on net settlements of share-based compensation |
(7 |
) |
|
(6 |
) |
|
(13 |
) |
Other financing activities, net |
(39 |
) |
|
— |
|
|
(39 |
) |
Net cash provided (used) by financing activities |
(345 |
) |
|
(1,520 |
) |
|
(1,865 |
) |
Effect of foreign currency rates on cash |
(29 |
) |
|
— |
|
|
(29 |
) |
Net increase (decrease) in cash and cash equivalents |
(108 |
) |
|
(1,104 |
) |
|
(1,212 |
) |
Cash and cash equivalents at beginning of period |
699 |
|
|
1,961 |
|
|
2,660 |
|
Cash and cash equivalents at end period |
$ |
591 |
|
|
857 |
|
|
1,448 |
|
|