Equity-Method Investments

3 Months Ended

Mar. 31, 2013

Note 4 — Equity-Method Investments

LivingSocial’s summarized condensed financial information, as provided to us by LivingSocial, is as follows (in millions):


	Three Months Ended March 31,
	2013			2012
Statement of Operations:
Revenue	$	135		$	110
Operating expense		179			201

Operating loss		(44	)		(91	)
Net income (loss) (1)	$	(50	)	$	156

(1)	The difference between the operating loss and net income for the three months ended March 31, 2012 is primarily due to non-operating, non-cash gains on previously held equity positions in companies that LivingSocial acquired during Q1 2012.

As of March 31, 2013, the book value of our equity-method investment in LivingSocial investment was $36 million. Additionally, in Q1 2013 we made a $56 million investment in LivingSocial that we have recorded as a cost method investment.

- 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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