| 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 December 31, 2011 and the carrying amount at December 31, 2010:
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December 31, 2011 |
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December 31,
2010
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Percentage
ownership
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Market
value
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Carrying
amount
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Carrying
amount
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dollars in millions |
Expedia, Inc. (1)(2) |
26 |
% |
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$ |
1,004 |
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$ |
621 |
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|
710 |
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TripAdvisor, Inc. (1) |
26 |
% |
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$ |
873 |
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|
184 |
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— |
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HSN,Inc. |
34 |
% |
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$ |
726 |
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|
217 |
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133 |
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Other |
various |
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N/A |
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113 |
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106 |
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$ |
1,135 |
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|
949 |
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The following table presents Liberty's share of earnings (losses) of affiliates:
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Years ended December 31, |
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2011 |
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2010 |
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2009 |
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amounts in millions |
Expedia, Inc. (1) |
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$ |
119 |
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103 |
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72 |
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TripAdvisor, Inc. (1) |
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— |
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— |
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— |
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HSN,Inc. |
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38 |
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31 |
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(37 |
) |
Other |
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(17 |
) |
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(22 |
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(11 |
) |
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$ |
140 |
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112 |
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24 |
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(1) |
During the fourth quarter of 2011 Expedia, Inc. completed the pro-rata split-off of TripAdvisor, Inc., a wholly owned subsidiary. Therefore, the Company has a 26% ownership interest in each of Expedia, Inc. and TripAdvisor, Inc. as of December 31, 2011. |
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(2) |
During the years ended December 31, 2011 and 2010, Expedia, Inc. paid dividends aggregating $19 million and $19 million, respectively.
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Expedia
Summarized unaudited financial information for Expedia is as follows:
Expedia Consolidated Balance Sheets
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December 31, 2011 |
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December 31,
2010 |
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amounts in millions |
Current assets |
$ |
2,275 |
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|
1,708 |
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Property and equipment, net |
320 |
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246 |
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Goodwill |
2,877 |
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2,865 |
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Intangible assets |
744 |
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747 |
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Assets of discontinued operations, noncurrent |
— |
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865 |
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Other assets |
289 |
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226 |
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Total assets |
$ |
6,505 |
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6,657 |
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Current liabilities |
$ |
2,553 |
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1,896 |
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Deferred income taxes |
280 |
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264 |
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Long-term debt |
1,249 |
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1,249 |
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Liabilities of discontinued operations, noncurrent |
— |
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396 |
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Other liabilities |
118 |
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115 |
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Noncontrolling interest |
105 |
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64 |
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Equity |
2,200 |
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2,673 |
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Total liabilities and equity |
$ |
6,505 |
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6,657 |
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Expedia Consolidated Statements of Operations
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Years ended December 31, |
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2011 |
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2010 |
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2009 |
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amounts in millions |
Revenue |
$ |
3,449 |
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|
3,034 |
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2,743 |
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Cost of revenue |
(761 |
) |
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(685 |
) |
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(603 |
) |
Gross profit |
2,688 |
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|
2,349 |
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|
2,140 |
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Selling, general and administrative expenses |
(2,186 |
) |
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(1,825 |
) |
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(1,684 |
) |
Amortization |
(22 |
) |
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(23 |
) |
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(24 |
) |
Restructuring charges and other |
— |
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— |
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(34 |
) |
Operating income |
480 |
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|
501 |
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|
398 |
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Interest expense |
(91 |
) |
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(66 |
) |
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(49 |
) |
Other income (expense), net |
13 |
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(10 |
) |
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(29 |
) |
Income tax (expense) benefit |
(76 |
) |
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(120 |
) |
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(101 |
) |
Income (loss) from continuing operations |
326 |
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|
305 |
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219 |
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Discontinued operations, net of tax |
148 |
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120 |
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|
85 |
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Net earnings (loss) |
474 |
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|
425 |
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|
304 |
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Less net earnings (loss) attributable to noncontrolling interests |
(2 |
) |
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(4 |
) |
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(4 |
) |
Net earnings (loss) attributable to Expedia, Inc. |
$ |
472 |
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|
421 |
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|
300 |
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