Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2014

OR

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                             to                             

Commission File Number 001-33982

LIBERTY INTERACTIVE CORPORATION

(Exact name of Registrant as specified in its charter)

 


incorporation or organization)


Identification No.)

State of Delaware

(State or other jurisdiction of
incorporation or organization)

84-1288730

(I.R.S. Employer
Identification No.)

 

 

12300 Liberty Boulevard
Englewood, Colorado

(Address of principal executive offices)

80112

(Zip Code)

 

Registrant's telephone number, including area code: (720) 875-5300

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes    No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes     No 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

(do not check if
smaller reporting company)

Smaller reporting company 

 

Indicate by check mark whether the Registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes     No 

The number of outstanding shares of Liberty Interactive Corporation's common stock as of October 31, 2014 was:

 

 

 

 

 

 

 

 

 

Series A

 

Series B

 

 

 

 

 

 

 

Liberty Interactive

 

447,102,241 

 

28,879,268 

 

Liberty Ventures

 

134,362,961 

 

6,991,129 

 

 

 

 

 

 

 

 

 

 


 

Table of Contents

Table of Contents

 

 

 

 

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (unaudited) 

    

I-3

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements Of Operations (unaudited) 

 

I-5

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements Of Comprehensive Earnings (Loss) (unaudited) 

 

I-7

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements Of Cash Flows (unaudited) 

 

I-8

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (unaudited) 

 

I-10

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 

 

I-27

Item 3. Quantitative and Qualitative Disclosures about Market Risk. 

 

I-39

Item 4. Controls and Procedures. 

 

I-40

 

 

 

PART II—OTHER INFORMATION 

 

II-1

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 

 

II-1

Item 6. Exhibits 

 

II-2

 

 

 

SIGNATURES 

 

II-3

EXHIBIT INDEX 

 

II-4

 

 

 

 

 

 

I-2


 

Table of Contents

 

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(unaudited)

 

 

 

 

 

 

 

 

 

 

    

September 30,

    

December 31,

 

 

 

2014

 

2013

 

 

 

amounts in millions

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,606 

 

902 

 

Trade and other receivables, net of allowance for doubtful accounts of $88 million and $85 million

 

 

800 

 

1,152 

 

Inventory, net

 

 

1,279 

 

1,123 

 

Short term marketable securities (note 6)

 

 

667 

 

412 

 

Other current assets

 

 

87 

 

184 

 

Current assets from discontinued operations

 

 

 —

 

653 

 

Total current assets

 

 

4,439 

 

4,426 

 

Investments in available-for-sale securities and other cost investments (note 7)

 

 

1,161 

 

1,313 

 

Investments in affiliates, accounted for using the equity method (note 8)

 

 

1,271 

 

1,237 

 

Property and equipment, at cost

 

 

2,142 

 

2,201 

 

Accumulated depreciation

 

 

(1,011)

 

(993)

 

 

 

 

1,131 

 

1,208 

 

Intangible assets not subject to amortization (note 9):

 

 

 

 

 

 

Goodwill

 

 

5,809 

 

5,872 

 

Trademarks

 

 

2,511 

 

2,511 

 

 

 

 

8,320 

 

8,383 

 

Intangible assets subject to amortization, net (note 9)

 

 

1,303 

 

1,587 

 

Other assets, at cost, net of accumulated amortization

 

 

82 

 

80 

 

Noncurrent assets from discontinued operations

 

 

 —

 

6,442 

 

Total assets

 

$

17,707 

 

24,676 

 

 

(continued)

 

See accompanying notes to condensed consolidated financial statements.

I-3


 

Table of Contents

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Continued)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

 

2014

 

2013

 

 

 

amounts in millions,

 

 

 

except share amounts

 

Liabilities and Equity

    

 

    

    

    

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

702 

 

606 

 

Accrued liabilities

 

 

646 

 

903 

 

Current portion of debt (note 10)

 

 

972 

 

909 

 

Deferred income tax liabilities

 

 

1,004 

 

925 

 

Other current liabilities

 

 

163 

 

148 

 

Current liabilities from discontinued operations

 

 

 —

 

265 

 

Total current liabilities

 

 

3,487 

 

3,756 

 

Long-term debt, including $2,474 million and $2,355 million measured at fair value (note 10)

 

 

6,523 

 

6,106 

 

Deferred income tax liabilities

 

 

1,828 

 

2,001 

 

Other liabilities

 

 

241 

 

191 

 

Noncurrent liabilities from discontinued operations

 

 

 —

 

1,187 

 

Total liabilities

 

 

12,079 

 

13,241 

 

Equity

 

 

 

 

 

 

Stockholders' equity (note 11):

 

 

 

 

 

 

Preferred stock, $.01 par value. Authorized 50,000,000 shares; no shares issued

 

 

 —

 

 —

 

Series A Liberty Interactive common stock, $.01 par value. Authorized 4,000,000,000 shares; issued and outstanding 447,055,195 shares at September 30, 2014 and 471,625,030 shares at December 31, 2013

 

 

 

 

Series B Liberty Interactive common stock, $.01 par value. Authorized 150,000,000 shares; issued and outstanding 28,879,268 shares at September 30, 2014 and 28,884,103 shares at December 31, 2013

 

 

 —

 

 —

 

Series A Liberty Ventures common stock, $.01 par value. Authorized 200,000,000 shares; issued and outstanding 70,799,197 shares at September 30, 2014 and 70,761,208 shares at December 31, 2013

 

 

 

 

Series B Liberty Ventures common stock, $.01 par value. Authorized 7,500,000 shares; issued and outstanding 2,885,370 shares at September 30, 2014 and 2,885,378 shares at December 31, 2013

 

 

 —

 

 —

 

Additional paid-in capital

 

 

 —

 

1,146 

 

Accumulated other comprehensive earnings (loss), net of taxes

 

 

 

99 

 

Retained earnings

 

 

5,499 

 

5,685 

 

Total stockholders' equity

 

 

5,507 

 

6,936 

 

Noncontrolling interests in equity of subsidiaries

 

 

121 

 

4,499 

 

Total equity

 

 

5,628 

 

11,435 

 

Commitments and contingencies (note 12)

 

 

 

 

 

 

Total liabilities and equity

 

$

17,707 

 

24,676 

 

 

See accompanying notes to condensed consolidated financial statements.

I-4


 

Table of Contents

 

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements Of Operations

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

    

2014

    

2013

    

2014

    

2013

 

 

 

amounts in millions

 

Net retail sales

 

$

2,330 

 

2,225 

 

 

7,247 

 

7,026 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (exclusive of depreciation shown separately below)

 

 

1,488 

 

1,423 

 

 

4,602 

 

4,469 

 

Operating

 

 

203 

 

203 

 

 

633 

 

611 

 

Selling, general and administrative, including stock-based compensation (note 4)

 

 

234 

 

229 

 

 

768 

 

734 

 

Impairment of intangible assets

 

 

 —

 

19 

 

 

 

19 

 

Depreciation and amortization

 

 

166 

 

154 

 

 

493 

 

463 

 

 

 

 

2,091 

 

2,028 

 

 

6,503 

 

6,296 

 

Operating income

 

 

239 

 

197 

 

 

744 

 

730 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(99)

 

(89)

 

 

(292)

 

(295)

 

Share of earnings (losses) of affiliates, net (note 8)

 

 

36 

 

29 

 

 

38 

 

25 

 

Realized and unrealized gains (losses) on financial instruments, net (note 6)

 

 

18 

 

15 

 

 

(48)

 

(49)

 

Other, net

 

 

(38)

 

 

 

(28)

 

(36)

 

 

 

 

(83)

 

(40)

 

 

(330)

 

(355)

 

Earnings (loss) before income taxes

 

 

156 

 

157 

 

 

414 

 

375 

 

Income tax (expense) benefit

 

 

(27)

 

(35)

 

 

(107)

 

(81)

 

Net earnings (loss) from continuing operations

 

 

129 

 

122 

 

 

307 

 

294 

 

Earnings (loss) from discontinued operations, net of taxes

 

 

10 

 

 

 

48 

 

40 

 

Net earnings (loss)

 

 

139 

 

131 

 

 

355 

 

334 

 

Less net earnings (loss) attributable to the noncontrolling interests

 

 

19 

 

18 

 

 

76 

 

74 

 

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders

 

$

120 

 

113 

 

 

279 

 

260 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders:

 

 

 

 

 

 

 

 

 

 

 

Liberty Interactive common stock

 

$

83 

 

77 

 

 

298 

 

281 

 

Liberty Ventures common stock

 

 

37 

 

36 

 

 

(19)

 

(21)

 

 

 

$

120 

 

113 

 

 

279 

 

260 

 

 

 

 

 

 

 

 

 

 

 

(Continued)

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

I-5


 

Table of Contents

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements Of Operations (Continued)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2014

    

2013

    

2014

    

2013

 

Basic net earnings (losses) from continuing operations attributable to Liberty Interactive Corporation shareholders per common share (note 5):

 

 

 

 

 

 

 

 

 

 

 

Series A and Series B Liberty Interactive common stock

 

$

0.18 

 

0.16 

 

 

0.64 

 

0.56 

 

Series A and Series B Liberty Ventures common stock

 

$

0.47 

 

0.47 

 

 

(0.45)

 

(0.44)

 

Diluted net earnings (losses) from continuing operations attributable to Liberty Interactive Corporation shareholders per common share (note 5):

 

 

 

 

 

 

 

 

 

 

 

Series A and Series B Liberty Interactive common stock

 

$

0.18 

 

0.16 

 

 

0.63 

 

0.55 

 

Series A and Series B Liberty Ventures common stock

 

$

0.46 

 

0.46 

 

 

(0.45)

 

(0.44)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net earnings (losses) attributable to Liberty Interactive Corporation shareholders per common share (note 5):

 

 

 

 

 

 

 

 

 

 

 

Series A and Series B Liberty Interactive common stock

 

$

0.17 

 

0.15 

 

 

0.61 

 

0.54 

 

Series A and Series B Liberty Ventures common stock

 

$

0.51 

 

0.50 

 

 

(0.26)

 

(0.29)

 

Diluted net earnings (losses) attributable to Liberty Interactive Corporation shareholders per common share (note 5):

 

 

 

 

 

 

 

 

 

 

 

Series A and Series B Liberty Interactive common stock

 

$

0.17 

 

0.15 

 

 

0.60 

 

0.53 

 

Series A and Series B Liberty Ventures common stock

 

$

0.50 

 

0.49 

 

 

(0.26)

 

(0.29)

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

I-6


 

Table of Contents

 

 

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements Of Comprehensive Earnings (Loss)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

    

2014

    

2013

    

2014

    

2013

 

 

 

amounts in millions

 

Net earnings (loss)

 

$

139 

 

131 

 

355 

 

334 

 

Other comprehensive earnings (loss), net of taxes:

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(117)

 

71 

 

(98)

 

(39)

 

Unrealized holding gains (losses) arising during the period

 

 

(1)

 

 —

 

 —

 

 —

 

Share of other comprehensive earnings (losses) of equity affiliates

 

 

(5)

 

 —

 

(5)

 

 —

 

Other comprehensive earnings (loss) from discontinued operations

 

 

(21)

 

 

(2)

 

 —

 

Other comprehensive earnings (loss)

 

 

(144)

 

75 

 

(105)

 

(39)

 

Comprehensive earnings (loss)

 

 

(5)

 

206 

 

250 

 

295 

 

Less comprehensive earnings (loss) attributable to the noncontrolling interests

 

 

(5)

 

22 

 

74 

 

57 

 

Comprehensive earnings (loss) attributable to Liberty Interactive Corporation shareholders

 

$

 —

 

184 

 

176 

 

238 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings (loss) attributable to Liberty Interactive Corporation shareholders:

 

 

 

 

 

 

 

 

 

 

Liberty Interactive common stock

 

$

(22)

 

145 

 

210 

 

256 

 

Liberty Ventures common stock

 

 

22 

 

39 

 

(34)

 

(18)

 

 

 

$

 —

 

184 

 

176 

 

238 

 

 

See accompanying notes to condensed consolidated financial statements.

I-7


 

Table of Contents

 

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements Of Cash Flows

(unaudited)

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

September 30,

 

 

    

2014

    

2013

 

 

 

amounts in millions

 

Cash flows from operating activities:

 

 

 

 

 

 

Net earnings (loss)

 

$

355 

 

334 

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

(Earnings) loss from discontinued operations

 

 

(48)

 

(40)

 

Depreciation and amortization

 

 

493 

 

463 

 

Stock-based compensation

 

 

71 

 

80 

 

Cash payments for stock-based compensation

 

 

(15)

 

(8)

 

Excess tax benefit from stock-based compensation

 

 

(11)

 

(9)

 

Share of (earnings) losses of affiliates, net

 

 

(38)

 

(25)

 

Cash receipts from returns on equity investments

 

 

31 

 

25 

 

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

 

 

48 

 

49 

 

(Gains) losses on transactions, net

 

 

 —

 

 

Impairment of intangible assets

 

 

 

19 

 

Loss on extinguishment of debt

 

 

48 

 

 —

 

Deferred income tax expense (benefit)

 

 

(67)

 

(185)

 

Other, net

 

 

 

70 

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Current and other assets

 

 

165 

 

94 

 

Payables and other liabilities

 

 

66 

 

(333)

 

Net cash provided (used) by operating activities

 

 

1,108 

 

535 

 

Cash flows from investing activities:

 

 

 

 

 

 

Cash proceeds from dispositions of investments

 

 

40 

 

1,136 

 

Investments in and loans to cost and equity investees

 

 

(51)

 

(371)

 

Capital expended for property and equipment

 

 

(142)

 

(176)

 

Purchases of short term and other marketable securities

 

 

(423)

 

(1,013)

 

Sales of short term and other marketable securities

 

 

358 

 

454 

 

Other investing activities, net

 

 

(12)

 

(17)

 

Net cash provided (used) by investing activities

 

 

(230)

 

13 

 

Cash flows from financing activities:

 

 

 

 

 

 

Borrowings of debt

 

 

3,233 

 

3,710 

 

Repayments of debt

 

 

(2,920)

 

(5,004)

 

Repurchases of Liberty Interactive common stock

 

 

(736)

 

(750)

 

Minimum withholding taxes on net settlements of stock-based compensation

 

 

(16)

 

(22)

 

Excess tax benefit from stock-based compensation

 

 

11 

 

 

Other financing activities, net

 

 

(49)

 

(39)

 

Net cash provided (used) by financing activities

 

 

(477)

 

(2,096)

 

Net cash provided (used) by discontinued operations:

 

 

 

 

 

 

Operating

 

 

273 

 

230 

 

Investing

 

 

(194)

 

(181)

 

Financing

 

 

371 

 

(159)

 

Change in available cash held by discontinued operations

 

 

(116)

 

88 

 

Net cash provided (used) by discontinued operations

 

 

334 

 

(22)

 

Effect of foreign currency exchange rates on cash

 

 

(31)

 

(21)

 

Net increase (decrease) in cash and cash equivalents

 

 

704 

 

(1,591)

 

Cash and cash equivalents at beginning of period

 

 

902 

 

2,291 

 

Cash and cash equivalents at end of period

 

$

1,606 

 

700 

 

 

See accompanying notes to condensed consolidated financial statements.

 

 

I-8


 

Table of Contents

 

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statement Of Equity

(unaudited)

Nine months ended September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

Liberty

 

Liberty

 

Additional

 

other

 

 

 

Noncontrolling

 

 

 

 

 

Preferred

 

Interactive

 

Ventures

 

paid-in

 

comprehensive

 

Retained

 

interest in equity

 

Total

 

 

  

stock

  

Series A

  

Series B

  

Series A

  

Series B

  

capital

  

earnings

  

earnings

  

of subsidiaries

  

equity

 

 

 

amounts in millions

 

Balance at January 1, 2014

 

$

 —

 

 

 —

 

 

 —

 

1,146 

 

99 

 

5,685 

 

4,499 

 

11,435 

 

Net earnings (loss)

 

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

279 

 

76 

 

355 

 

Other comprehensive earnings (loss)

 

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

(103)

 

 —

 

(2)

 

(105)

 

Stock-based compensation

 

 

 —

 

 —

 

 —

 

 —

 

 —

 

82 

 

 —

 

 —

 

39 

 

121 

 

Issuance of common stock upon exercise of stock options

 

 

 —

 

 —

 

 —

 

 —

 

 —

 

 

 —

 

 —

 

 —

 

 

Series A Liberty Interactive stock repurchases

 

 

 —

 

 —

 

 —

 

 —

 

 —

 

(736)

 

 —

 

 —

 

 —

 

(736)

 

Shares issued by subsidiary

 

 

 —

 

 —

 

 —

 

 —

 

 —

 

(8)

 

 —

 

 —

 

 

 —

 

Minimum withholding taxes on net share settlements of stock-based compensation

 

 

 —

 

 —

 

 —

 

 —

 

 —

 

(48)

 

 —

 

 —

 

 —

 

(48)

 

Excess tax benefit from stock-based compensation

 

 

 —

 

 —

 

 —

 

 —

 

 —

 

25 

 

 —

 

 —

 

 —

 

25 

 

Distribution to noncontrolling interest

 

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

(25)

 

(25)

 

Distribution of Liberty TripAdvisor Holdings, Inc.

 

 

 —

 

 

 

 

 

 

 

 

 

(465)

 

 

(465)

 

(4,474)

 

(5,398)

 

Balance at September 30, 2014

 

$

 —

 

 

 —

 

 

 —

 

 —

 

 

5,499 

 

121 

 

5,628 

 

 

See accompanying notes to condensed consolidated financial statements.

 

 

 

 

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Table of Contents

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements (Continued)

 

(unaudited)

 

(1)   Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of Liberty Interactive Corporation and its controlled subsidiaries (collectively, "Liberty" or the "Company" unless the context otherwise requires). All significant intercompany accounts and transactions have been eliminated in consolidation.

Liberty, through its ownership of interests in subsidiaries and other companies, is primarily engaged in the video and on-line commerce industries in North America, Europe and Asia.

The accompanying (a) condensed consolidated balance sheet as of December 31, 2013, which has been derived from audited financial statements, and (b) the interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. Additionally, certain prior period amounts have been reclassified for comparability with current period presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Liberty's Annual Report on Form 10-K for the year ended December 31, 2013.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Liberty considers (i) fair value measurement, (ii) accounting for income taxes, (iii) assessments of other-than-temporary declines in fair value of its investments and (iv) estimates of retail-related adjustments and allowances to be its most significant estimates.

In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers.  The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a retrospective or cumulative effect transition method. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016.  The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have its financial statements and related disclosures.

Liberty holds investments that are accounted for using the equity method. Liberty does not control the decision making process or business management practices of these affiliates. Accordingly, Liberty relies on management of these affiliates to provide it with accurate financial information prepared in accordance with GAAP that Liberty uses in the application of the equity method. In addition, Liberty relies on audit reports that are provided by the affiliates' independent auditors on the financial statements of such affiliates. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliates that would have a material effect on Liberty's condensed consolidated financial statements.

Liberty has entered into certain agreements with Liberty Media Corporation ("LMC"), a separate publicly traded company, neither of which has any stock ownership, beneficial or otherwise, in the other, in order to govern relationships between the companies. These agreements include a Reorganization Agreement, Services Agreement, Facilities Sharing Agreement and Tax Sharing Agreement.

The Reorganization Agreement provides for, among other things, provisions governing the relationship between Liberty and LMC, including certain cross-indemnities. Pursuant to the Services Agreement, LMC provides Liberty with certain general and administrative services including legal, tax, accounting, treasury and investor relations support. Liberty reimburses LMC for direct, out-of-pocket expenses incurred by LMC in providing these services and for Liberty's allocable portion of costs associated with any shared services or personnel based on an estimated percentage of

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Table of Contents

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements (Continued)

 

(unaudited)

 

time spent providing services to Liberty. Under the Facilities Sharing Agreement, LMC shares office space and related amenities at its corporate headquarters with Liberty. Under these various agreements,  approximately $4 million and $4 million for the three months ended September 30, 2014 and 2013, respectively, and $9 million and $12 million for the nine months ended September 30, 2014 and 2013, respectively, were reimbursable to LMC.  The Tax Sharing Agreement provides for the allocation and indemnification of tax liabilities and benefits between Liberty, LMC and Starz (former parent of LMC) and other agreements related to tax matters.

On July 30, 2014, Liberty announced the execution of a definitive agreement under which FTD Companies, Inc. ("FTD") will acquire Provide Commerce, Inc. (“Provide”), which is one of Liberty’s Digital Commerce businesses (as defined in note 2). Under the terms of the $430 million transaction, Liberty will receive 10.2 million shares of FTD common stock representing approximately 35% of the combined company and $121 million in cash. FTD and Liberty expect to complete the transaction by the end of 2014.  Upon completion of the transaction, Liberty expects to account for FTD as an equity-method affiliate based on the ownership level and board representation. Given our significant continuing involvement with FTD, Liberty will not present Provide as a discontinued operation upon completion of the transaction. As of September 30, 2014 and December 31, 2013, the assets and liabilities subject to the sale are comprised of the following (amounts in millions):

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

 

2014

 

2013

 

Current assets

 

$

45 

 

87 

 

Property & Equipment, net

 

$

34 

 

32 

 

Goodwill

 

$

336 

 

338 

 

Trademarks

 

$

22 

 

22 

 

Other intangible assets, net

 

$

27 

 

31 

 

Other assets

 

$

14 

 

13 

 

Current liabilities

 

$

56 

 

91 

 

Net deferred tax liability

 

$

 

 

Other liabilities

 

$

16 

 

 

 

These net assets are not deemed material for isolated presentation as assets and liabilities held for sale in our condensed consolidated balance sheets as of September  30, 2014 and December 31, 2013. Accordingly, these net assets are included in the above captions in the condensed consolidated balance sheets as of September 30, 2014 and December 31, 2013.

 

(2)   Tracking Stocks

A tracking stock is a type of common stock that the issuing company intends to reflect or "track" the economic performance of a particular business or "group," rather than the economic performance of the company as a whole. Liberty has two tracking stocks—Liberty Interactive common stock and Liberty Ventures common stock, which are intended to track and reflect the economic performance of the Interactive Group (which, in future filings will be referred to as the QVC Group as a result of the reattribution, as described below) and Ventures Group, respectively.

While the Interactive Group and the Ventures Group have separate collections of businesses, assets and liabilities attributed to them, no group is a separate legal entity and therefore cannot own assets, issue securities or enter into legally binding agreements. Holders of tracking stocks have no direct claim to the group's stock or assets and are not represented by separate boards of directors. Instead, holders of tracking stock are stockholders of the parent corporation, with a single board of directors and subject to all of the risks and liabilities of the parent corporation.

The term "Ventures Group" does not represent a separate legal entity, rather it represents those businesses, assets and liabilities that have been attributed to that group. At September 30, 2014, the Ventures Group is primarily comprised of interests in Expedia, Inc., Interval Leisure Group, Inc., Tree.com, Inc., investments in Time Warner Inc. and Time Warner Cable Inc., as well as cash and cash equivalents of approximately $873 million. The Ventures Group also has attributed to it certain liabilities related to our corporate indebtedness (see note 10) and certain deferred tax liabilities.

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LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements (Continued)

 

(unaudited)

 

The Ventures Group is primarily focused on the maximization of the value of these investments and investing in new business opportunities. 

The term "Interactive Group" does not represent a separate legal entity, rather it represents those businesses, assets and liabilities that have been attributed to that group. At September 30, 2014, the Interactive Group is primarily focused on video and digital commerce operating businesses and has attributed to it the remainder of Liberty's businesses and assets, including operating subsidiaries QVC, Inc. ("QVC"), Provide, Backcountry, Bodybuilding, Evite, Right Start and CommerceHub as well as interests in HSN, Inc., and cash and cash equivalents of approximately $733 million, which includes subsidiary cash. The Interactive Group has attributed to it liabilities that reside with QVC and the other entities listed as well as certain liabilities related to our corporate indebtedness (see note 10) and certain deferred tax liabilities.

See Exhibit 99.1 to this Quarterly Report on Form 10-Q for unaudited attributed financial information for Liberty's tracking stock groups.

On October 3, 2014, Liberty announced that its board of directors approved the change in attribution from the Interactive Group to the Ventures Group of certain of its Digital Commerce companies (defined below), which were valued at $1.5 billion, and approximately $1 billion in cash. The reattributed Digital Commerce companies are comprised of Liberty’s subsidiaries Backcountry.com, Bodybuilding.com, LLC, CommerceHub, Evite.com, Provide and Right Start (collectively, the “Digital Commerce” companies).  

In exchange for the Digital Commerce companies and $970 million of cash (collectively, the "Reattributed Assets"), an inter-group interest in the Ventures Group was created in favor of the Interactive Group, which is referred to as the QVC Group subsequent to the reattribution. This inter-group interest was represented as a number of shares of Liberty Ventures common stock issuable to the Interactive Group, which we refer to as the "Inter-Group Interest Shares" (as calculated below). Immediately following the reattribution on October 3, 2014, Liberty's board declared a dividend of the Inter-Group Interest Shares to the holders of Series A and Series B Liberty Interactive common stock in full elimination of the inter-group interest. In connection with the payment of the dividend, typical antidilution adjustments were made to outstanding options of Liberty Interactive common stock equity incentive awards, and the Liberty board has reattributed $30 million in cash (outside of the Reattributed Assets) to the Ventures Group relating to its assumption of liabilities related to those awards.

In the dividend, the Inter-Group Interest Shares were allocated, pro-rata, to the outstanding shares of Series A and Series B Liberty Interactive common stock at 5:00 p.m., New York City time, on October 13, 2014, the record date for the dividend, such that each holder of Liberty Interactive common stock received 0.14217 of a share of the corresponding series of Liberty Ventures common stock for each share of Liberty Interactive common stock held as of the record date, with cash paid in lieu of fractional shares. The distribution date for the dividend was on October 20, 2014, and the Liberty Interactive common stock began trading ex-dividend on October 15, 2014.  

The Inter-Group Interest Shares were calculated in accordance with Liberty's restated certificate of incorporation as follows: the total fair value of the Reattributed Assets, as determined by Liberty’s board, of $2.47 billion, divided by the average of the high and low sales prices for the Series A Liberty Ventures common stock on October 3, 2014, which was  $36.50, resulting in 67,671,232 shares of Liberty Ventures common stock so issuable. The Inter-Group Interest Shares were allocated such that the number of shares of Series A Liberty Ventures common stock and shares of Series B Liberty Ventures common stock issued in the dividend were in the same proportion as the shares of Series A Liberty Interactive common stock and Series B Liberty Interactive common stock outstanding on the record date, with each share of Series A Liberty Interactive common stock and each share of Series B Liberty Interactive common stock receiving the same fraction of a share of Series A or Series B Liberty Ventures common stock, as the case may be.

The Interactive Group, has attributed to it, following the reattribution, Liberty’s wholly-owned subsidiary QVC, Inc. and its approximate 38% interest in HSN, Inc., along with cash and certain liabilities.    In connection with the

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Table of Contents

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements (Continued)

 

(unaudited)

 

reattribution, QVC increased the balance on its credit facility to $1.06 billion (see note 10). In connection with the reattribution, the Liberty Interactive tracking stock trading symbol “LINTA” was changed to "QVCA" and the "LINTB" trading symbol to "QVCB," effective October 7, 2014. Other than the issuance of Liberty Ventures shares in the fourth quarter of 2014, the reattribution of tracking stock groups has no consolidated impact on Liberty.

(3) Discontinued Operations

On August 27, 2014, Liberty completed the spin-off to holders of its Liberty Ventures common stock shares of its former wholly-owned subsidiary, Liberty TripAdvisor Holdings, Inc. (“TripAdvisor Holdings”) (the “TripAdvisor Holdings Spin-Off”). TripAdvisor Holdings is comprised of Liberty’s former 22% economic and 57% voting interest in TripAdvisor, as well as BuySeasons, Liberty’s former wholly-owned subsidiary, and a corporate level net debt balance of $350 million. In connection with the TripAdvisor Holdings Spin-Off during August 2014,  TripAdvisor Holdings drew down $400 million in margin loans and distributed approximately $350 million to Liberty. This transaction has been recorded at historical cost due to the pro rata nature of the distribution. Following the completion of the TripAdvisor Holdings Spin-Off, Liberty and TripAdvisor Holdings operate as separate, publicly traded companies, and neither has any stock ownership, beneficial or otherwise, in the other. The condensed, consolidated financial statements of Liberty have been prepared to reflect TripAdvisor Holdings as discontinued operations. Accordingly, the assets and liabilities, revenue, costs and expenses, and cash flows of the businesses, assets and liabilities owned by TripAdvisor Holdings at the time of the TripAdvisor Holdings Spin-Off have been excluded from the respective captions in the accompanying condensed consolidated balance sheets, statements of operations, comprehensive earnings and cash flows in such condensed consolidated financial statements.

 

In connection with the TripAdvisor Holdings Spin-off, Liberty and TripAdvisor Holdings entered into a tax sharing agreement (the “Tax Sharing Agreement”).  The Tax Sharing Agreement provides for the allocation and indemnification of tax liabilities and benefits between Liberty and TripAdvisor Holdings and other agreements related to tax matters.  Among other things, pursuant to the Tax Sharing Agreement, TripAdvisor Holdings has agreed to indemnify Liberty, subject to certain limited exceptions, for losses and taxes resulting from the TripAdvisor Holdings Spin-Off to the extent such losses or taxes result primarily from, individually or in the aggregate, the breach of certain restrictive covenants made by TripAdvisor Holdings (applicable to actions or failures to act by TripAdvisor Holdings and its subsidiaries following the completion of the TripAdvisor Holdings Spin-Off).

 

In October 2014, the IRS completed its examination of the TripAdvisor Holding Spin-Off and notified Liberty that it agreed with the nontaxable characterization of the transaction.  Liberty expects to execute a Closing Agreement with the IRS documenting this conclusion after Liberty’s 2014 tax year ends on December 31, 2014.

 

Certain combined financial information for TripAdvisor Holdings, which is included in the  discontinued operations line items of the condensed consolidated Liberty balance sheets as of December 31, 2013, is as follows (amounts in millions):

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2013

 

Current assets

 

$

653 

 

Investments in available-for-sale securities and other cost investments

 

$

188 

 

Property & Equipment, net

 

$

39 

 

Goodwill

 

$

3,460 

 

Trademarks

 

$

1,832 

 

Other intangible assets, net

 

$

905 

 

Other assets

 

$

18 

 

Current liabilities

 

$

196 

 

Debt, including current portion

 

$

369 

 

Net deferred tax liability

 

$

843 

 

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LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements (Continued)

 

(unaudited)

 

Other liabilities

 

$

44 

 

 

 

 

 

 

Certain combined financial information for TripAdvisor Holdings, which is included in earnings (loss) from discontinued operations, is as follows (amounts in millions, except per share amounts):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2014

    

2013

    

2014

    

2013

 

Revenue

 

$

254 

 

275 

 

883 

 

785 

 

Earnings (loss) before income taxes

 

$

13 

 

 

68 

 

21 

 

Earnings (loss) attributable to Liberty Interactive Corporation shareholders

 

$

(1)

 

(1)

 

(1)

 

(1)

 

 

Earnings per share of discontinued operations

 

The combined impact from discontinued operations, discussed above, is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2014

    

2013

    

2014

    

2013

 

Basic earnings (loss) from discontinued operations attributable to Liberty shareholders per common share (note 5):

 

 

 

 

 

 

 

 

 

 

Series A and Series B Liberty Interactive common stock

 

$

(0.01)

 

(0.01)

 

(0.03)

 

(0.02)

 

Series A and Series B Liberty Ventures common stock

 

$

0.04 

 

0.03 

 

0.19 

 

0.15 

 

Diluted earnings (loss) from discontinued operations attributable to Liberty shareholders per common share (note 5):

 

 

 

 

 

 

 

 

 

 

Series A and Series B Liberty Interactive common stock

 

$

(0.01)

 

(0.01)

 

(0.03)

 

(0.02)

 

Series A and Series B Liberty Ventures common stock

 

$

0.04 

 

0.03 

 

0.19 

 

0.15 

 

 

The assets and liabilities included in the TripAdvisor Holdings Spin-Off, and their resulting impacts on the attributed statements of operations, were included in discontinued operations based on which group owned the assets at the time of the TripAdvisor Holdings Spin-Off.

 

(4)   Stock-Based Compensation

The Company has granted to certain of its directors, employees and employees of its subsidiaries stock appreciation rights ("SARs"), restricted stock grants and options to purchase shares of Liberty common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options and restricted stock) based on the grant-date fair value of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award (such as SARs that will be settled in cash) based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date.

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Table of Contents

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements (Continued)

 

(unaudited)

 

In connection with the TripAdvisor Holdings Spin-Off in August 2014, all outstanding Awards with respect to Liberty Ventures common stock (“Liberty Ventures Award”) were adjusted pursuant to the anti-dilution provisions of the incentive plans under which the equity awards were granted, such that a holder of a Liberty Ventures Award received:

i.

An adjustment to the exercise price or base price, as applicable, and the number of shares subject to the Liberty Ventures Award (as so adjusted, an “adjusted Liberty Ventures Award”) and

ii.

A corresponding equity award relating to shares of TripAdvisor Holdings common stock (a “TripAdvisor Holdings Award”)

The exercise prices and number of shares subject to the adjusted Liberty Ventures Award and the TripAdvisor Holdings Award were determined based on 1) the exercise prices and number of shares subject to the Liberty Ventures Award, 2) the pre-distribution trading price of Liberty Ventures common stock and 3) the post-distribution trading prices of Liberty Ventures common stock and TripAdvisor Holdings common stock, such that all of the pre-distribution intrinsic value of the Liberty Ventures Award was allocated between the adjusted Liberty Ventures Award and the TripAdvisor Holdings Award.

Following the TripAdvisor Holdings Spin-Off, employees of Liberty hold Awards in both Liberty Ventures common stock and TripAdvisor Holdings common stock.  The compensation expense relating to employees of Liberty is recorded at Liberty.

Included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations are the following amounts of stock-based compensation (amounts in millions):

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

September 30, 2014

 

$

20 

 

September 30, 2013

 

$

23 

 

Nine months ended:

 

 

 

 

September 30, 2014

 

$

71 

 

September 30, 2013

 

$

80 

 

During the nine months ended September 30, 2014, Liberty granted, primarily to QVC employees, 1.8 million options to purchase shares of Series A Liberty Interactive common stock.  Such options had a weighted average grant-date fair value of $12.05 per share and vest semi-annually over the 4 year vesting period.

The Company has calculated the grant-date fair value for all of its equity classified Awards and any subsequent remeasurement of its liability classified Awards using the Black-Scholes Model. The Company estimates the expected term of the Awards based on historical exercise and forfeiture data. The volatility used in the calculation for Awards is based on the historical volatility of Liberty's stock and the implied volatility of publicly traded Liberty options. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options.

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Table of Contents

LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements (Continued)

 

(unaudited)

 

Liberty—Outstanding Awards

The following tables present the number and weighted average exercise price ("WAEP") of the Awards to purchase Liberty Interactive and Liberty Ventures common stock granted to certain officers, employees and directors of the Company.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Interactive

 

 

    

 

    

 

 

    

Weighted

 

    

Aggregate

 

 

 

 

 

 

 

 

average

 

 

intrinsic

 

 

 

Series A

 

 

 

 

remaining

 

 

value

 

 

 

(000's)

 

WAEP

 

life

 

 

(millions)

 

Outstanding at January 1, 2014

 

30,607 

 

$

17.98 

 

 

 

 

 

 

 

Granted

 

1,824 

 

$

29.20 

 

 

 

 

 

 

 

Exercised

 

(2,547)

 

$

14.60 

 

 

 

 

 

 

 

Forfeited/Cancelled

 

(1,000)

 

$

20.97 

 

 

 

 

 

 

 

Outstanding at September 30, 2014

 

28,884 

 

$

18.88 

 

4.6 

years

 

$

280 

 

Exercisable at September 30, 2014

 

16,340 

 

$

17.61 

 

4.2 

years

 

$

179 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Ventures

 

 

    

 

    

 

 

    

Weighted

 

    

Aggregate

 

 

 

 

 

 

 

 

average

 

 

intrinsic

 

 

 

Series A

 

 

 

 

remaining

 

 

value

 

 

 

(000's)

 

WAEP

 

life

 

 

(millions)

 

Outstanding at January 1, 2014

 

1,932 

 

$

28.71 

 

 

 

 

 

 

 

Granted

 

 

$

73.05 

 

 

 

 

 

 

 

Exercised

 

(115)

 

$

24.92 

 

 

 

 

 

 

 

Forfeited/Cancelled

 

(1)

 

$

34.30 

 

 

 

 

 

 

 

Adjustment for the TripAdvisor Holdings Spin-Off

 

28 

 

$

14.63 

 

 

 

 

 

 

 

Outstanding at September 30, 2014

 

1,845 

 

$

14.64 

 

4.5 

years

 

$

43 

 

Exercisable at September 30, 2014

 

1,034 

 

$

14.30 

 

4.2 

years

 

$

24 

 

 

There was no activity during the period for the outstanding Liberty Interactive or Liberty Ventures Series B awards.

As of September 30, 2014, the total unrecognized compensation cost related to unvested Liberty outstanding equity Awards was approximately $89 million, including compensation associated with the option exchange that occurred in December 2012. Such amount will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 2.3 years.

Other

Certain of the Company's other subsidiaries have stock based compensation plans under which employees and non-employees are granted options or similar stock based awards. Awards made under these plans vest and become exercisable over various terms. The awards and compensation recorded, if any, under these plans is not significant to Liberty.

 

 

(5)   Earnings (Loss) Per Common Share

Basic earnings (loss) per common share ("EPS") is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented.

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LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements (Continued)

 

(unaudited)

 

Series A and Series B Liberty Interactive Common Stock

Excluded from diluted EPS, for the the three months ended September 30, 2014 and 2013, are 2 million and less than a million potential common shares, respectively, because their inclusion would be antidilutive. Excluded from diluted EPS, for the nine months ended September 30, 2014 and 2013, are 2 million and less than a million potential common shares, respectively, because their inclusion would be antidilutive. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Interactive Common Stock

 

 

    

Three months ended 

    

Nine months ended

 

 

 

September 30, 2014

 

September 30, 2013

 

September 30, 2014

 

September 30, 2013

 

 

 

number of shares in millions

 

Basic EPS

 

477 

 

513 

 

486 

 

524 

 

Potentially dilutive shares

 

10 

 

10 

 

10 

 

 

Diluted EPS

 

487 

 

523 

 

496 

 

532 

 

 

 

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LIBERTY INTERACTIVE CORPORATION AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements (Continued)

 

(unaudited)

 

Series A and Series B Liberty Ventures Common Stock

 

As discussed in note 11, Liberty completed a two for one stock split on April 11, 2014 on its Series A and Series B Liberty Ventures common stock. Therefore, all prior period outstanding share amounts have been retroactively adjusted for comparability.  Excluded from diluted EPS, for all periods presented, are less than a million potential common shares because their inclusion would be antidilutive.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Ventures Common Stock

 

 

    

Three months ended 

    

Nine months ended

 

 

 

September 30, 2014

 

September 30, 2013

 

September 30, 2014

 

September 30, 2013

 

 

 

number of shares in millions

 

Basic EPS

 

73 

 

72 

 

73 

 

72 

 

Potentially dilutive shares

 

 

 

 

 

Diluted EPS

 

74 

 

74 

 

74 

 

74 

 

 

 

 

 

 

(6)   Assets and Liabilities Measured at Fair Value

For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.

The Company's assets and liabilities measured at fair value are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

Fair Value Measurements at

 

 

 

September 30, 2014

 

December 31, 2013

 

 

    

 

 

    

Quoted

    

 

    

 

    

Quoted

    

 

 

 

 

 

 

 

prices

 

 

 

 

 

prices

 

 

 

 

 

 

 

 

in active

 

Significant

 

 

 

in active

 

Significant