EX-12.1 8 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

EXPEDIA, INC.

COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES

 

     Six Months Ended
June 30,
   Year Ended December 31,
     2010    2009    2009    2008(1)     2007    2006    2005
     (in thousands, except ratios)

Earnings:

                   

Income (loss) before income taxes

   $ 267,653    $ 143,207    $ 458,023    $ (2,514,704   $ 496,984    $ 384,898    $ 413,871

Fixed charges

     48,928      49,673      99,097      86,805        63,715      27,173      10,773
                                                 

Total earnings available for fixed charges

   $ 316,581    $ 192,880    $ 557,120    $ (2,427,899   $ 560,699    $ 412,071    $ 424,644

Fixed charges:

                   

Interest expense

   $ 41,412    $ 42,450    $ 84,233    $ 71,984      $ 52,896    $ 17,266    $ 2,106

Estimate of interest within rental expense(2)

     7,516      7,223      14,864      14,821        10,819      9,907      8,667
                                                 

Total fixed charges

   $ 48,928    $ 49,673    $ 99,097    $ 86,805      $ 63,715    $ 27,173    $ 10,773

Consolidated ratio of earnings to fixed charges

     6.47x      3.88x      5.62x      N/A        8.80x      15.16x      39.42x

 

(1) The year ended December 31, 2008 includes an approximately $3 billion impairment charge related to goodwill, intangible and other long-lived assets resulting in earnings that were inadequate to cover fixed charges by approximately $2.515 billion. Excluding this charge the ratio of earnings to fixed charges would have been 6.54x.

(2) Assumes the interest component of rental expense is approximately one-third of total rental expense based on an analysis of net present values.