EQUITY-METHOD INVESTMENTS

Note 5—EQUITY-METHOD INVESTMENTS

Our equity-method investments include a 29% interest in LivingSocial. Summarized condensed financial information for this investee, as provided to us by LivingSocial, is as follows (in millions):


	Year Ended December 31,
	2012			2011
Statement of Operations:
Revenue	$	536		$	250
Operating expense		862			669
Impairment charge		579			—

Operating loss		(905	)		(419	)
Net loss (1)	$	(650	)	$	(499	)

(1)	The difference between the operating loss and net loss for 2012 is primarily due to the recognition of non-operating, non-cash gains on previously held equity positions in companies that LivingSocial acquired during Q1 2012.


	December 31,
	2012		2011
Balance Sheet:
Current assets	$	76	$	176
Noncurrent assets		218		271
Current liabilities		338		210
Noncurrent liabilities		14		32
Mandatorily redeemable stock		205		201

LivingSocial tested its goodwill and certain long-lived assets for impairment based on certain triggering events. Although its goodwill impairment test is not complete as of the date of this filing, LivingSocial believes an impairment loss is probable and has provided to us its best estimate. Completion of this impairment test by LivingSocial may result in an adjustment to this estimate.

As of December 31, 2012, the book value of our LivingSocial investment was $52 million. The summarized financial information is included for the periods in which we held an equity method ownership interest.

- 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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