含羞草传媒. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Investments In Affiliates Accounted For Using The Equity Method

Investments In Affiliates Accounted For Using The Equity Method

12 Months Ended

Dec. 31, 2014

Investments In Affiliates Accounted For Using The Equity Method

听

Investments In Affiliates Accounted For Using The Equity Method

(8)听听听听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听31, 2014 and the carrying amount at December听31, 2013:

听

听	听	听	听	听	听	听	听	听	听	听	听
听	听	December听31,听2014							听	December听31,听2013	听
听	听	Percentage	听	Market		听	Carrying		听	Carrying	听
听	听	ownership	听	value		听	amount		听	amount	听
听	听	听	听	dollars听in听millions							听
QVC Group	听听听听	听	听听听听	听	听	听听听听	听	听	听听听听	听	听
HSN, Inc. (2)	听	38听	%听听	$	1,521听	听	$	328听	听	293听	听
Other	听	various	听	听	N/A	听	听	47听	听	50听	听
Total QVC Group	听	听	听	听	听	听	听	375听	听	343听	听
Ventures Group	听	听	听	听	听	听	听	听	听	听	听
Expedia (1)(2)	听	18听	%听听	$	1,992听	听	听	514听	听	477听	听
FTD (3)	听	35听	%听听	$	355听	听	听	355听	听	听鈥�	听
Other	听	various	听	听	N/A	听	听	389听	听	417听	听
Total Ventures Group	听	听	听	听	听	听	听	1,258听	听	894听	听
Consolidated Liberty	听	听	听	听	听	听	$	1,633听	听	1,237听	听

听

The following table presents Liberty's share of earnings (losses) of affiliates:

听

听	听	听	听	听	听	听	听	听
听	听	Years听ended听December听31,						听
听	听听听听	2014		听听听听	2013	听听听听	2012	听
听	听	amounts听in听millions						听
QVC Group	听	听	听	听	听	听	听	听
HSN, Inc.	听	$	60听	听	61听	听	40听	听
Other	听	听	(9)	听	(13)	听	(12)	听
Total QVC Group	听	听	51听	听	48听	听	28听	听
Ventures Group	听	听	听	听	听	听	听	听
Expedia, Inc.	听	听	58听	听	31听	听	67听	听
Other	听	听	(70)	听	(46)	听	(48)	听
Total Ventures Group	听	听	(12)	听	(15)	听	19听	听
Consolidated Liberty	听	$	39听	听	33听	听	47听	听

听

(1)

Liberty entered into a forward sales contract on 12 million shares of Expedia common stock in March 2012 at a per share forward price of $34.316.听听The forward contract was settled in October 2012 for total cash proceeds of $412 million and the 12 million shares of Expedia common stock, previously held as collateral, were released to the counterparty.听听In the fourth quarter of 2012, when the forward contract settled, the difference between the fair value of the Expedia shares and the carrying value of the shares ($443 million) was recognized in the gain (loss) on transactions, net line item in the statement of operations.听Liberty owns an approximate 18% equity interest and 58% voting interest in Expedia.听听Liberty has entered into governance arrangements pursuant to which Mr. Barry Diller, Chairman of the Board and Senior Executive Officer of Expedia, may vote its interests of Expedia, subject to certain limitations.听听Additionally, through our governance arrangements with Mr. Diller, we have the right to appoint and have appointed 20% of the members of Expedia's board of directors, which is currently comprised of 10 members.听听Therefore, we determined based on these arrangements that we have significant influence and have accounted for the investment as an equity method affiliate.

(2)

During the years ended December 31, 2014, 2013 and 2012, Expedia, Inc. paid dividends aggregating $15 million, $13 million and $23 million, respectively, and HSN, Inc. paid dividends of $22 million and $16 million during the years ended December 31, 2014 and December 31, 2013, respectively, which were recorded as reductions to the investment balances.听

(3)

As discussed in note 1, FTD acquired Liberty鈥檚 formerly wholly-owned subsidiary, Provide, on December 31, 2014. In exchange for Provide, Liberty received approximately 10.2 million shares of FTD common stock representing approximately 35% of the combined company and approximately $145 million in cash. Subsequent to completion of the transaction, Liberty accounts for FTD as an equity-method affiliate based on the ownership level and board representation.

HSN, Inc.

Liberty records the share of earnings (loss) for HSN, Inc. on a quarter lag due to timeliness considerations and access to financial information.听听Summarized unaudited financial information for HSN, Inc., on a quarter lag, is as follows:

HSN, Inc. Consolidated Balance Sheets

听

听	听	听	听	听	听	听
听	听听听听	September听30,		听听听听	September听30,	听
听	听	2014		听	听2013	听
听	听	amounts听in听millions				听
Current assets	听	$	863听	听	773听	听
Property and equipment, net	听	听	180听	听	171听	听
Goodwill	听	听	10听	听	10听	听
Intangible assets	听	听	262听	听	266听	听
Other assets	听	听	14听	听	6听	听
Total assets	听	$	1,329听	听	1,226听	听
Current liabilities	听	$	474听	听	412听	听
Deferred income taxes	听	听	76听	听	90听	听
Long-term debt	听	听	216听	听	231听	听
Other liabilities	听	听	15听	听	11听	听
Equity	听	听	548听	听	482听	听
Total liabilities and equity	听	$	1,329听	听	1,226听	听

听

HSN, Inc. Consolidated Statements of Operations

听

听	听	听	听	听	听	听	听	听
听	听	Trailing听twelve听months听ended听September听30,						听
听	听听听听	2014		听听听听	2013	听听听听	2012	听
听	听	amounts听in听millions						听
Revenue	听	$	3,490听	听	3,367听	听	3,206听	听
Cost of revenue	听	听	(2,246)	听	(2,152)	听	(2,039)	听
Gross profit	听	听	1,244听	听	1,215听	听	1,167听	听
Selling, general and administrative expenses	听	听	(928)	听	(898)	听	(877)	听
Amortization	听	听	(43)	听	(40)	听	(38)	听
Operating income	听	听	273听	听	277听	听	252听	听
Interest expense	听	听	(7)	听	(7)	听	(27)	听
Other income (expense), net	听	听	听鈥�	听	1听	听	(18)	听
Income tax (expense) benefit	听	听	(100)	听	(98)	听	(78)	听
Income (loss) from continuing operations	听	听	166听	听	173听	听	129听	听
Discontinued operations, net of tax	听	听	听鈥�	听	1听	听	(8)	听
Net earnings (loss) attributable to HSN shareholders	听	$	166听	听	174听	听	121听	听

听

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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