º¬Ð߲ݴ«Ã½

Annual report pursuant to Section 13 and 15(d)

Information º¬Ð߲ݴ«Ã½ Liberty's Operating Segments

v2.4.0.8
Information º¬Ð߲ݴ«Ã½ Liberty's Operating Segments
 12 Months Ended
Dec. 31, 2013
Information º¬Ð߲ݴ«Ã½ Liberty's Operating Segments Ìý
Information º¬Ð߲ݴ«Ã½ Liberty's Operating Segments
Information º¬Ð߲ݴ«Ã½ Liberty's Operating Segments
Liberty, through its ownership interests in subsidiaries and other companies, is primarily engaged in the video and on-line commerce industries. Liberty identifies its reportable segments as (A)Ìýthose consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B)Ìýthose equity method affiliates whose share of earnings represent 10% or more of Liberty's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation.
Liberty evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per customer equivalent. In addition, Liberty reviews nonfinancial measures such as unique website visitors, conversion rates and active customers, as appropriate.
Liberty defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). Liberty believes this measure is an important indicator of the operational strength and performance of its businesses, including each business's ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Liberty generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
For the year ended DecemberÌý31, 2013, Liberty has identified the following consolidated subsidiaries as its reportable segments:
•
QVC—consolidated subsidiary that markets and sells a wide variety of consumer products in the United States and several foreign countries, primarily by means of its televised shopping programs and via the Internet and mobile transactions through its domestic and international websites.
•
TripAdvisor, Inc. - an online travel research company, empowering users to plan and maximize their travel experience.
Additionally, for presentation purposes Liberty is providing financial information of the E-commerce businesses on an aggregated basis. The consolidated businesses do not contribute significantly to the overall operations of Liberty on an individual basis; however, Liberty believes that on an aggregated basis they provide relevant information for users of these financial statements. While these businesses may not meet the aggregation criteria under relevant accounting literature, Liberty believes the information is relevant and helpful for a more complete understanding of the consolidated results.
•
E-commerce—the aggregation of certain consolidated subsidiaries that market and sell a wide variety of consumer products via the Internet. Categories of consumer products include perishable and personal gift offerings (Provide Commerce, Inc.), active lifestyle gear and clothing (Backcountry.com, Inc.), fitness and health goods (Bodybuilding.com, LLC) and celebration offerings from invitations to costumes (Celebrate Interactive Holdings, LLC).
Liberty's operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated subsidiaries are the same as those described in the Company's summary of significant accounting policies.
Performance Measures
Ìý
Years ended
Ìý
December 31,
Ìý
2013
Ìý
2012
Ìý
2011
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
amounts in millions
Interactive Group
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
QVC
$
8,623

Ìý
1,841

Ìý
8,516

Ìý
1,828

Ìý
8,268

Ìý
1,733

E-commerce
1,684

Ìý
85

Ìý
1,502

Ìý
96

Ìý
1,348

Ìý
123

Corporate and other
—

Ìý
(20
)
Ìý
—

Ìý
(27
)
Ìý
—

Ìý
(29
)
Total Interactive Group
10,307

Ìý
1,906

Ìý
10,018

Ìý
1,897

Ìý
9,616

Ìý
1,827

Ventures Group
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
TripAdvisor
945

Ìý
379

Ìý
36

Ìý
8

Ìý
—

Ìý
—

Corporate and other
—

Ìý
(11
)
Ìý
—

Ìý
(5
)
Ìý
—

Ìý
(4
)
Total Ventures Group
945

Ìý
368

Ìý
36

Ìý
3

Ìý
—

Ìý
(4
)
Consolidated Liberty
$
11,252

Ìý
2,274

Ìý
10,054

Ìý
1,900

Ìý
9,616

Ìý
1,823









Other Information
Ìý
DecemberÌý31,
2013
Ìý
December 31,
2012
Ìý
Total
assets
Ìý
Investments
in
affiliates
Ìý
Capital
expenditures
Ìý
Total
assets
Ìý
Investments
in
affiliates
Ìý
Capital
expenditures
Ìý
amounts in millions
Interactive Group
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
QVC
$
13,031

Ìý
51

Ìý
217

Ìý
13,414

Ìý
52

Ìý
246

E-commerce
1,255

Ìý
—

Ìý
78

Ìý
1,488

Ìý
9

Ìý
91

Corporate and other
576

Ìý
292

Ìý
—

Ìý
213

Ìý
243

Ìý
1

Total Interactive Group
14,862

Ìý
343

Ìý
295

Ìý
15,115

Ìý
304

Ìý
338

Ventures Group
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
TripAdvisor
7,061

Ìý
—

Ìý
57

Ìý
7,377

Ìý
—

Ìý
1

Corporate and other
2,923

Ìý
894

Ìý
—

Ìý
3,919

Ìý
547

Ìý
—

Total Ventures Group
9,984

Ìý
894

Ìý
57

Ìý
11,296

Ìý
547

Ìý
1

Inter-group eliminations
(170
)
Ìý
—

Ìý
—

Ìý
(156
)
Ìý
—

Ìý
—

Consolidated Liberty
$
24,676

Ìý
1,237

Ìý
352

Ìý
26,255

Ìý
851

Ìý
339


The following table provides a reconciliation of segment Adjusted OIBDA to earnings (loss) from continuing operations before income taxes:
Ìý
Years ended December 31,
Ìý
2013
Ìý
2012
Ìý
2011
Ìý
amounts in millions
Consolidated segment Adjusted OIBDA
$
2,274

Ìý
1,900

Ìý
1,823

ÌýÌýStock-based compensation
(178
)
Ìý
(91
)
Ìý
(49
)
ÌýÌýDepreciation and amortization
(943
)
Ìý
(609
)
Ìý
(641
)
ÌýÌýImpairment of intangible assets
(33
)
Ìý
(92
)
Ìý
—

ÌýÌýInterest expense
(373
)
Ìý
(432
)
Ìý
(427
)
ÌýÌýShare of earnings (loss) of affiliates, net
33

Ìý
85

Ìý
140

ÌýÌýRealized and unrealized gains (losses) on financial instruments, net
(22
)
Ìý
(351
)
Ìý
84

ÌýÌýGains (losses) on transactions, net
(2
)
Ìý
1,531

Ìý
—

ÌýÌýOther, net
(46
)
Ìý
44

Ìý
9

Earnings (loss) from continuing operations before income taxes
$
710

Ìý
1,985

Ìý
939



Revenue by Geographic Area
Revenue by geographic area based on the location of customers is as follows:
Ìý
Years ended December 31,
Ìý
2013
Ìý
2012
Ìý
2011
Ìý
amounts in millions
United States
$
7,872

Ìý
7,009

Ìý
6,670

Japan
1,029

Ìý
1,251

Ìý
1,133

Germany
971

Ìý
957

Ìý
1,068

Other foreign countries
1,380

Ìý
837

Ìý
745

Ìý
$
11,252

Ìý
10,054

Ìý
9,616





Long-lived Assets by Geographic Area
Ìý
December 31,
Ìý
2013
Ìý
2012
Ìý
amounts in millions
United States
$
582

Ìý
529

Japan
220

Ìý
280

Germany
245

Ìý
247

Other foreign countries
200

Ìý
179

Ìý
$
1,247

Ìý
1,235