EX-99.2 3 dex992.htm EXPEDIA, INC. SECOND QUARTER 2011 COMPANY OVERVIEW EXPEDIA, INC. SECOND QUARTER 2011 COMPANY OVERVIEW
EXPEDIA, INC.
Company Overview Q2 2011
Exhibit 99.2

EXPEDIA, INC.
This
presentation
contains
"forward-looking
statements"
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995.
These
statements are not guarantees of future performance. These forward-looking statements are based on management’s expectations as of July
28,
2011
and
assumptions
which
are
inherently
subject
to
uncertainties,
risks
and
changes
in
circumstances
that
are
difficult
to
predict.
The
use
of words such as "intends" and “expects,”
among others, generally identify forward-looking statements. However, these words are not the
exclusive
means
of
identifying
such
statements.
In
addition,
any
statements
that
refer
to
expectations,
projections
or
other
characterizations
of
future
events
or
circumstances
are
forward-looking
statements
and
may
include
statements
relating
to
future
revenues,
expenses,
margins,
profitability,
net
income
/
(loss),
earnings
per
share
and
other
measures
of
results
of
operations
and
the
prospects
for
future
growth
of
Expedia,
Inc.’s business.
Actual results and the timing and outcome of events may differ materially from those expressed or implied in the forward-looking
statements for a variety of reasons, including, among others: declines or disruptions in the travel industry; changes in our relationships and
contractual agreements with travel suppliers or supplier intermediaries; risks relating to the announced spin-off of our TripAdvisor business;
increases in the costs of maintaining and enhancing our brand awareness; changes in search engine algorithms and dynamics, or search
engine disintermediation; our inability to adapt to technological developments or to maintain our existing technologies; our ability to expand
successfully in international markets; changes in senior management; volatility in our stock price; changing laws, rules and regulations and legal
uncertainties relating to our business; unfavorable new, or adverse application of existing, tax laws, rules or regulations; adverse outcomes in
legal
proceedings
to
which
we
are
party;
provisions
in
certain
credit
card
processing
agreements
that
could
adversely
impact
our
liquidity
and
financial
positions;
fluctuations
in
our
effective
tax
rate;
our
inability
to
access
the
capital
markets
when
necessary;
risks
related
to
our
long
term
indebtedness; fluctuations in foreign exchange rates; risks related to the failure of counterparties to perform on financial obligations; potential
liabilities
resulting
from
our
processing,
storage,
use
and
disclosure
of
personal
data;
the
integration
of
current
and
acquired
businesses;
the
risk
that our intellectual property is not protected from copying or use by others, including competitors; and other risks detailed in our public filings
with the SEC, including our annual report on Form 10-K for the year ended December 31, 2010 and subsequent quarterly filings on Form 10-
Q.
Except as required by law, we undertake no obligation to update any forward-looking or other statements in this press release, whether as a
result of new information, future events or otherwise.
Reconciliations of non-GAAP measures included in this presentation to the most comparable GAAP measures are included in Appendix B.
Forward-Looking Statements
2
Q211 Company Overview

EXPEDIA, INC.
Global Opportunity
CAGR
2008
2009
2010 (E)
2011 (E)
‘08 –
‘11
Travel Market Size:
U.S.
274
233
255
271
Flat
Europe
350
313
320
332
-1%
APAC
215
202
212
227
1%
LATAM
56
52
58
63
3%
4 Region Total 
895
800
845
893
Flat
Online Bookings:
U.S.
143
132
139
145
Flat
Europe
107
107
118
129
5%
APAC
31
36
44
55
15%
LATAM
5
6
8
11
24%
4 Region Online
285
280
310
339
5%
Europe, APAC &
LATAM
142
148
171
195
8%
Online Penetration:
U.S.
52%
57%
54%
53%
Europe
30%
34%
37%
39%
APAC
14%
18%
21%
24%
LATAM
9%
11%
14%
18%
4 Region Online Pen.
32%
35%
37%
38%
Figures in $billions
OTA Share of
Online Bookings
Sizeable
markets
Higher growth
online
Penetration
tailwinds
OTA share
stabilizing
3
Q211 Company Overview
Sources: U.S. Online Travel Overview 10th Edition (November 2010); U.S. Online Travel Overview 8th Edition Update: 2009 – 2010
(April 2009); U.S. Corporate Travel Distribution 4th Edition (July 2009); US Online figure for 2011 assumes ~$40 million in online
corporate travel bookings; European Online Travel Overview 6th Edition (November 2010); European Online Travel Overview 5th
Edition (October 2009); European figures assume Euro/USD exchange rate in each period of $1.45; APAC data - PhoCusWright
Asia Pacific Online Travel Overview – Third Edition (August 2009) & EyeForTravel APAC Overview (April 2007). APAC data
excludes managed travel. LATAM data – PhoCusWright Latin America: Navigating the Emerging Online Travel Marketplace (April
2011).  LATAM data excludes managed travel.

EXPEDIA, INC.
World’s Largest & Most Intelligent Travel Marketplace
4
Q211 Company Overview
Suppliers
Customers
Hotels
Airlines
Car rental companies
Cruise lines
Global distribution system
(GDS) partners
Advertisers
Leisure travelers
Corporate travelers
Travel service providers
(“white label”)
Offline retail travel agents
Secure superior quality supply & maintain price competitiveness
Intelligently match supply & demand
Empower and inspire travelers to find and build the right trip
Enable suppliers to reach travelers in a unique & value-additive way
Aggressively expand our global presence & demand footprint
Achieve excellence in technology, people and processes to make quality, consistency
& efficiency the foundation of our marketplace
Travel
products
Travel info
Technology

EXPEDIA, INC.
Expedia: The Travel Sector Leader
5
Q211 Company Overview
1
Sources: comScore MediaMetrix, June 2011 & company data; ² See Appendix B
for reconciliation of non-GAAP to GAAP numbers. Adjusted EBITDA is calculated as
operating income plus depreciation, restructuring charges, intangibles
amortization, stock-based compensation, any impairments, and certain legal
reserves and occupancy tax charges. Adj. EBITDA includes realized gains/(losses)
from revenue hedges.
Global presence & portfolio of category leading brands
Premier Brand
Portfolio
#1
Online
Travel
Agency
(OTA)
globally,
with
presence
in 23
countries
Leading
hotel
specialist
globally,
with
over
75
localized sites
Leading value-based travel provider
#1
online
travel
community,
operating
in
North
America,
EMEA & APAC
Key Statistics
1
TTM 6.30.11
•Gross bookings:
$  27.9b
•Revenue:
$    3.6b
•OIBA
:
$841mm
•Adjusted EBITDA
$973mm
•
$8.3b market cap (July 15, 2011)
•
Member of S&P 500 & NASDAQ 100
stock indices
•Traffic  (June 2011 unique visitors):
86mm
•TTM 6.30.11 number of transactions:
69mm
2
2

EXPEDIA, INC.
U.S.
Worldwide
Largest Worldwide Audience
6
Q211 Company Overview
+161%
1
+125%
1
+85%
1
+104%
1
+129%
1
+88%
1
Orbitz
Yahoo Travel
Priceline
Travelocity
1
Denotes Expedia’s percentage difference over next largest competitor
Source: ComScore MediaMetrix, June 2011.
0
5
10
15
20
25
30
UV's
0
100
200
300
400
500
600
700
Min Spent Online
Page Views
0
10
20
30
40
50
60
70
80
UV's
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
Min Spent Online
Page Views

EXPEDIA, INC.
Expedia’s Virtuous Cycle
7
Q211 Company Overview
Scale drives opportunity to enhance supplier, traveler &
advertiser value propositions, reward stakeholders
Growth/
Scale
User-
generated
content
More
travelers
Improved
traveler
experience
Better
supplier
economics
Compelling
supplier &
advertising
channel
Cash flow  
to invest in
More ad
revenue
EXPEDIA, INC.

EXPEDIA, INC.
Revenue by Product & Geography
8
Q211 Company Overview
Product Categories (TTM 6.30.2011)
Geographic  Split (TTM 6.30.2011)
Hotel
64%
Revenue
Air
11%
* Hotel & Advertising –
>75% of revenue base
and key revenue / profitability drivers
* Europe & other international markets benefit
from earlier stage online penetration
* Significant international growth anticipated,
with a target of 50+% of total revenue from
international
Domestic
59%
Revenue
International
41%
Advertising 
& Media
13%
Car, Cruise & Other
13%
Business mix shifting to hotel & advertising, increasingly global
Source: Company financial reports; some numbers may not add due to rounding

EXPEDIA, INC.
Business Overview
Merchant Model / Illustrative Transaction
Product Category -
Hotel
9
Q211 Company Overview
Hotels
(Supplier)
Travelers
Revenues to Expedia:
•Spread between the discounted rate provided
by suppliers and sales price paid by travelers
•Service fees from travelers
Other:
•Cash received on booking, revenue recognized
at stay
•Revenue margin higher than the agency model
•Merchant hotel
Expedia
merchant
of
record
with
no
inventory
risk
Expedia
receives
cash
upfront
from
travelers,
pays
hoteliers
several
weeks
later
Some
control
over
pricing,
higher
margins
&
ability
to
package
with
other
products
1 -
3
year
contracts
with
major
chain
lodging
properties
Consultative
account
management
brings
industry
leading
intelligence
to
hoteliers
•
Agency hotel small but growing in importance
Sample Expedia Revenue:
$350 night stay at luxury hotel
Cost to Traveler
Cost to Expedia
$350
$280
Revenue to Expedia ¹
$70
1
Includes service fee and spread

EXPEDIA, INC.
Trended Worldwide Hotel Growth Statistics (y/y)
10
Q211 Company Overview
Source: Company financial reports.  2005-2007 data is for merchant hotel only; 2008-2011 data is for both agency and merchant hotel.
-30%
-20%
-
10%
0%
10%
20%
30%
ADRs
Room Nights Stayed
Hotel Revenue

EXPEDIA, INC.
Business Overview
Revenue Drivers
Product Category –
Advertising & Media
11
Q211 Company Overview
Travel supplier advertising on Expedia’s ww sites
Reviews with social networking
Search tool for fares
Travel blogs
European holiday reviews
Destination services, hotels & vacation rentals
Editorial info and deals
Cruise reviews & community
UGC seat maps and airline info
Guides and bargains
Vacation rental 
Ad & Media Brand Portfolio
•Two primary businesses –
•TripAdvisor Media Group
(leading global collection of
user-generated content sites)
•Expedia Media (monetizing global Expedia, Hotels &
Hotwire sites beyond transactions)
•TTM revenue of $476mm, +30% y/y
•Offer advertisers targeted audiences
•CPC, CPM & subscription based ad models
•TripAdvisor leverages industry-leading SEM & SEO
capabilities
•Robust user-generated content and selection draws in users
Growth in TTM Net Advertising Revenues¹
Source: Company reports
$292
$295
$299
$311
$337
$367
$401
$423
$446
$476
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
1
TTM growth due in part to acquisitions
0.7
2.9
5.0
10.0
15.0
20.0
25.0
30.0
40.0
45.0
50.0
0
20
40
60
TripAdvisor
Reviews and Opinions  -
Robust Growth

EXPEDIA, INC.
Business Overview
Product Category –
Air
12
Q211 Company Overview
•
Air revenue = 11% of Expedia’s worldwide trailing twelve months revenue
-
~95% of airplane tickets sold over Expedia’s online properties are agency transactions, in which Expedia acts as
an agent on behalf of a supplier and collects a commission
-
Customer pays supplier directly, Expedia collects its remuneration after travel
-
Lower revenue margin
business vs. hotel transactions
Agency Model / Illustrative Transaction
Revenue to Expedia:
•Largely unit / volume driven and includes:
•Portion of GDS fee
•Commissions & incentives from carriers
•Booking fees (some sites)
Other:
•Supplier is merchant of record
•Expedia bears no inventory risk
•Revenue recognized at booking, cash received within
weeks
•Agency model is used in other product categories,
including hotel
•Multi-GDS strategy
Airlines
(Supplier)
GDS
Travelers

EXPEDIA, INC.
Trended Worldwide Air Growth Statistics (y/y)
13
Q211 Company Overview
Source: Company financial reports

EXPEDIA, INC.
Stable Supplier Relationships & Economics
14
Q211 Company Overview
Trended Revenue Margin (TTM)
Stable supplier margins indicate healthy supplier relationships
Reductions driven by traveler fee cuts & rising air ticket prices
Supplier margins largely stable driven by:
Long-term agreements with airlines and GDS providers
Better hotel relationships through PSG investment
Growth in advertising business helping offset fee cut impact
Source: Company financial reports

EXPEDIA, INC.
Q211 Results
15
Q211 Company Overview
Figures in $mm unless otherwise noted
Q210
Q211
y/y
Transactions (mm)
16.9
19.4
15%
Gross Bookings
$6,683
$7,951
19%
Revenue
834
1,024
23%
Cost of Revenue
1
*
168
198
18%
Selling & Marketing
1
*
294
391
33%
Tech & Content
1
*
84
107
27%
General & Administrative
1
*
71
78
10%
Total Costs and Expenses
1
*
617
774
25%
OIBA
1
**
219
243
11%
OIBA Margin
1
26%
24%
(255bps)
Adjusted EBITDA
1
***
250
279
12%
Adj. EBITDA Margin
1
30%
27%
(265bps)
Free Cash Flow
1
270
433
60%
Unit Growth
•
Q211 worldwide room night growth of 21%
•
Q211 worldwide air tickets declined 3%
* Excludes stock-based compensation. ** OIBA includes realized gain/(loss) from revenue hedges  *** 
Adjusted EBITDA is calculated as operating income plus depreciation, restructuring charges, intangibles
amortization, stock-based compensation, any impairments and certain legal reserves and occupancy tax
charges.  Adj. EBITDA includes realized gains/(losses) from revenue hedges. ¹ See Appendix B for
reconciliation of non-GAAP to GAAP numbers.
Source: Company financial reports ; some numbers may not add due to rounding

EXPEDIA, INC.
Trended Free Cash Flow (TTM)
16
Q211 Company Overview
Source: Company financial reports.  *Free cash flow is a non-GAAP measure calculated by adding capital expenditures  to net cash provided by or used in operating activities. 
See Appendix B for reconciliation of non-GAAP to GAAP numbers.
Figures in $millions
‘08 cash flows down due to
taxes, slowing merchant
hotel & one-time cap ex
‘09 cash flows improved due
to higher earnings, merchant
hotel recovery & normalized
cap ex
‘10 cash flows improved due
to higher earnings, lower
occupancy tax assessment
payments and lower cash tax
payments

EXPEDIA, INC.
Efficiently Managing Dilution
17
Q211 Company Overview
15% reduction in share base since Q107
Millions of adjusted diluted shares
Source: Company financial reports
2007 repurchased 55mm
shares for $1.4b
2010 repurchased 20.6mm
shares for $489mm

EXPEDIA, INC.
Capitalization
18
Q211 Company Overview
3 debt issues with long-
term maturities
(2018 Notes have 2013
investor put)
Modest leverage;
minimal net debt
6.30.2011
Cash and Cash Equivalents
$1,409
Revolving Credit Facility
-
5.950% Notes due 2020
750
7.456% Notes due 2018
500
8.500% Notes due 2016
395
Total Debt
$1,645
Net Debt
236
Market Value of Equity
$8,299
Total Capitalization
$8,535
Adjusted EBITDA TTM
$973
Total Debt / Adj. EBITDA
1.7
Net Debt / Adj. EBITDA
0.2
1
2
3
4
4
4
Source: Company financial reports.  Some numbers may not add due to rounding.
1
2
3
4
Does not include restricted cash, short-term investments and corporate bond investments that are included in long-term assets.
Total size of revolving credit facility closed in February 2010 is $750 million; available capacity reduced by $27mm in outstanding letters of credit  as of June 30, 2011.
Based on 274mm outstanding shares and  July 15, 2011 closing share price of $30.26.
Adjusted EBITDA is calculated as operating income plus depreciation, intangibles expense, restructuring charges, stock-based compensation, any impairments, certain legal reserves and
occupancy tax charges. Adjusted EBITDA includes any realized gains/(losses) from revenue hedges. See Appendix B for reconciliation of non-GAAP to GAAP numbers.

EXPEDIA, INC.
Trended Credit Metrics
19
Q211 Company Overview
12.31.07
12.31.08
12.31.09
12.31.10
TTM
6.30.11
Leverage Measures
Total Debt / TTM Adjusted
EBITDA
1.5
2.0
1.0
1.7
1.7
Net Debt / TTM Adjusted EBITDA
0.6
1.1
0.3
1.0
0.2
Coverage Measures
TTM Adj. EBITDA / TTM Interest
Expense
13.8
10.8
10.3
9.4
7.9
TTM Free Cash Flow / TTM Int.
Expense
11.8
5.0
6.9
6.1
7.1
Demonstrated strong credit metrics, consistent with investment grade rating
See Appendix B for reconciliation of non-GAAP to GAAP numbers.
Source: Company financial reports
1
1
1
1
1

EXPEDIA, INC.
Rating Agency Snapshot
20
Q211 Company Overview
S&P (Analyst: Andy Liu)
Rating ‘BBB-’
on CreditWatch with negative implications
April 7, 2011 and July 11, 2011 Research Updates:
“The CreditWatch placement is based on the company’s plan to split off its TripAdvisor unit…we believe it will
reduce Expedia’s growth rate, EBITDA margin, and discretionary cash flow going forward.”
Moody’s (Analyst: Stephen Sohn)
Rating Affirmed at Ba1 / Outlook Stable
April 7, 2011 and April 11, 2011 Credit Opinions:
“The revised stable outlook for Expedia reflects our view that a near term upgrade is unlikely until there is more
clarity regarding the capital structure post spin-off of TripAdvisor.”
“Expedia’s Ba1 rating is supported by the company’s leading position in the consumer online travel agency market,
moderate leverage, solid profitability, and steady cash flow generation.”
Fitch Rates Expedia, Inc.'s 'BBB-'; Outlook Stable
Issuer Default Rating (IDR) 'BBB-‘; Senior unsecured notes 'BBB-'; Senior unsecured bank credit
facility 'BBB-’; Rating Outlook is Stable
February 14, 2011 Research Update:
“Results should benefit from a continued strengthening of industry travel trends and be positively impacted by
continued share gains at Expedia as consumers increasingly utilize online travel agents (OTAs).”
“Advertising revenue, which is growing significantly faster than airline and hotel revenue and now represents over
10% of total revenue, represents a strong source of revenue diversification and positively impacts overall
profitability.”
Although Expedia is a globally recognized brand, the company may have to pursue opportunistic acquisitions to
maintain its leadership position while achieving its growth objectives.”

EXPEDIA, INC.
oSubstantial free cash flow
(TTM 6.30.11: $873mm)
oModest leverage (1.7x)
oStrong interest coverage (7.9x)
oHigh operating margins
oRoughly 55% variable / 45% fixed cost base
•
Compelling platforms for travel suppliers, travelers and advertisers
•
Strong
business
model,
execution
and
credit
metrics
Summary
21
Q211 Company Overview
•
Attractive macro tailwind as travel industry shifts online
•
World’s #1 online provider of travel-related services
1
See Appendix B for reconciliation of non-GAAP to GAAP numbers.
Proven Management
1
oLeading traffic, supply, scale, bookings, revenue and cash flows
oStrong and complementary portfolio of brands and products
oImportant partner to airlines, hotels, and other travel suppliers
oDiversified brands, business models, and geographic reach

EXPEDIA, INC.
Appendix A
22
Q211 Company Overview

EXPEDIA, INC.
Business Model –
Income Statement (FY 2010)
23
Q211 Company Overview
$ in millions
Gross bookings
$25,962
Revenue
3,348
Cost of revenue¹
690
Selling and marketing¹
1,190
General and administrative¹
285
Technology and content¹
348
“OIBA”
¹
831
OIBA margin¹
25%
Stock-based compensation
60
Amortization of intangibles
37
Legal reserves, occupancy tax & restructuring
6
Operating income (GAAP)
732
Customer books travel product or
service; total retail value (incl taxes
and fees) constitutes “Gross
Bookings.”
Expedia’s portion of the gross
booking gets recorded as revenue
(inc. commissions, fees, etc.). Also
includes advertising & media
revenue. Revenue = 12.9% of ‘10
bookings.
(1) Personnel–related costs,
including executive leadership,
finance, legal, tax and HR functions.
(2) Fees for professional services
typically related to legal, tax and
accounting engagements.
Annual employee awards granted
each Q1; company switched to
options from RSUs in 2009.
Amortization of M&A activity
Consists of direct (73%)
advertising expenses (search
engine marketing & other online
advertising,  TV,  etc.)  and
indirect, personnel-related costs
(27%), including our supplier
relationship function (PSG).
Principally relates to payroll and
related expenses, hardware &
software, licensing &
maintenance and software
development cost amortization.
Excludes stock-based compensation.  See Appendix B for reconciliation of non-GAAP to GAAP numbers.
Source: Company financial reports
1
•
Customer operations
•
Credit card & fraud expense
•
Data center & other costs

EXPEDIA, INC.
Trended Historical Results
24
Q211 Company Overview
Growth
2006
2007
2008
2009
2010
2007
2008
2009
2010
Gross Bookings
$16,882
$19,632
$21,269
$21,811
$25,962
16%
8%
3%
19%
Revenue
2,238
2,665
2,937
2,955
3,348
19%
10%
1%
13%
Cost & Expenses *
1,639
1,996
2,239
2,183
2,514
22%
12%
(3%)
15%
OIBA***
599
670
698
762
831
12%
4%
9%
9%
OIBA Margin***
27%
25%
24%
26%
25%
(165bps)
(136bps)
201bps
(96bps)
Adj. EBITDA**
648
729
775
864
949
13%
6%
12%
10%
EBITDA Margin***
29%
27%
26%
29%
28%
(160bps)
(98bps)
287bps
(90bps)
Free Cash Flow***
525
625
361
584
622
19%
(42%)
62%
7%
•
Positive top-line growth
•
Investing in business to drive accelerated transaction growth.
•
$3.6B in cumulative OIBA & $2.7B in cumulative free cash flow
Figures in $millions
*Excludes stock-based compensation.  See Appendix B for reconciliation of non-GAAP to GAAP numbers.
**Adjusted EBITDA is calculated as operating income plus depreciation, intangibles expense, restructuring charges, stock-based compensation, any impairments and certain legal
reserves and occupancy tax charges.  Adjusted EBITDA includes any gains/(losses) from revenue hedges.  See Appendix B for reconciliation of non-GAAP to GAAP numbers.
***See Appendix B for reconciliation of non-GAAP to GAAP numbers.

EXPEDIA, INC.
Appendix B
25
Q211 Company Overview

EXPEDIA, INC.
Tabular Reconciliations for Non-GAAP Data
26
Q211 Company Overview
OIBA
$    219,472
$    243,284
Amortization of intangible assets
(8,344)
(7,046)
Stock-based compensation
(14,651)
(13,481)
Legal reserves and occupancy tax assessments
-
-
Spin-off costs
-
(2,108)           
Realized (gain) loss on revenue hedges
(2,787)           
6,320                  
Operating income
193,690      
226,969
Operating income margin
23%
22%
Interest expense, net
(18,988)
(25,682)
Other, net
817
(4,947)
Provision for income taxes
(60,166)
(55,450)
Net income attributable to noncontrolling interests
(1,091)
(497)
Net income attributable to Expedia, Inc.
$    114,262      
$   140,393
Operating Income Before Amortization
(all figures in $000s)
Source: Company financial reports
3 Months Ended
June 30, 2010
3 Months Ended
June 30, 2011

EXPEDIA, INC.
Tabular Reconciliations for Non-GAAP Data
27
Q211 Company Overview
Source: Company financial reports
Operating Income Before Amortization
(all figures in $000s)
Year Ended 
Dec. 31, 2006
Year Ended
Dec. 31, 2007
Year Ended
Dec. 31, 2008
Year Ended
Dec. 31, 2009
Year Ended
Dec. 31, 2010
OIBA
$    599,018
$    669,487
$    697,774
$    761,532
$    830,721
OIBA margin
27%
25%
24%
26%
25%
Amortization of intangible assets
(110,766)
(77,569)
(69,436)
(37,681)
(37,123)
Amortization of non
-
cash distribution and marketing
(9,638)
-
-
-
-
Stock-based compensation
(80,285)
(62,849)
(61,291)
(61,661)
(59,690)
Restructuring charges
-
-
-
(34,168)
-
Legal reserves and occupancy tax assessments
-
-
-
(67,658)
(5,542)
Impairment of goodwill
-
-
(2,762,100)
-
-
Impairment of intangible & other long-lived assets
(47,000)
-
(233,900)
-
-
Realized loss on revenue hedges
-
-
-
11,050
3,549
Operating income / (loss)
351,329
529,069
(2,428,953)
571,414
731,915
Operating income margin
16%
20%
n/a
19%
22%
Interest income (expense), net
14,799
(13,478)
(41,573)
(78,027)
(94,131)
Other, net
18,770
(18,607)
(44,178)
(35,364)
(17,216)
Provision for income taxes
(139,451)
(203,114)
(5,966)
(154,400)         (195,008)        
Net (income) loss attributable to noncontrolling interests
(513)
1,994
2,907
(4,097)          
(4,060)          
Net income / (loss) attributable to Expedia, Inc.
$    244,934
$    295,864
$(2,517,763)
$    299,526
$    421,500

EXPEDIA, INC.
Tabular Reconciliations for Non-GAAP Data
28
Q211 Company Overview
Costs & Expenses
(all figures in $000s)
Year Ended
Dec. 31, 2006
Year Ended
Dec. 31, 2007
Year Ended
Dec. 31, 2008
Year Ended
Dec. 31, 2009
Year Ended
Dec. 31, 2010
Total costs and expenses*
$    1,718,853
$    2,058,694
$    2,300,530
$    2,244,505
$    2,573,529
Less: stock-based compensation
(80,285)
(62,849)
(61,291)
(61,661)
(59,690)
Costs and expenses excluding stock-based compensation
1,638,568
1,995,845
2,239,239
2,182,844
2,513,839
Quarter Ended
June 30, 2010
Quarter Ended
June 30, 2011
Total costs and expenses*
631,926
787,511      
Less: stock-based compensation
(14,651)
(13,481)
Costs and expenses excluding stock-based
compensation
617,275
774,030
*Includes cost of revenue, selling and marketing, general and administrative and technology and content expenses.
Source: Company financial reports

EXPEDIA, INC.
Tabular Reconciliations for Non-GAAP Data
29
Q211 Company Overview
Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization
(all figures in $000s)
Source: Company financial reports
Year Ended
Dec.
31,
2006
Year Ended
Dec.
31,
2007
Year Ended
Dec.
31,
2008
Year Ended
Dec.
31,
2009
Year Ended
Dec. 31
, 2010
Adjusted EBITDA
647,797
729,013
774,574
864,314
949,123
Adjusted EBITDA margin
29%
27%
26%
29%
28%
Depreciation
(48,779)
(59,526)
(76,800)
(102,782)
(118,402)
OIBA
599,018
669,487
697,774
761,532
830,721
Qtr Ended
June
30,
2010
Qtr Ended
June
30,
2011
TTM
6.30.11
Adjusted EBITDA
249,787
279,449
973,171
Adjusted EBITDA margin
30%
27%%
27%
Depreciation
(30,315)
(36,165)
(131,924)
OIBA
219,472
243,284
841,247

EXPEDIA, INC.
Tabular Reconciliations for Non-GAAP Data
30
Q211 Company Overview
12 Months
Ended
Dec. 31, 2009
12 Months
Ended
Dec. 31, 2010
3 Months
Ended
June 30, 2010
3 Months
Ended
June 30, 2011
Cost of revenue
607,251
692,832
168,571
198,544
Less: stock-based compensation
(2,285)
(2,401)
(487)
(581)
Cost of revenue excluding stock-based
compensation
604,966
690,431
168,084
197,963
Selling and marketing
1,027,062
1,204,141
296,830
393,969
Less: stock-based compensation
(12,440)
(13,867)
(3,118)
(2,868)
Selling and marketing excluding stock-based
compensation
1,014,622
1,190,274
293,712
391,101
Technology and content
319,708
362,447
87,420
110,161
Less: stock-based compensation
(15,700)
(14,326)
(3,249)
(3,329)
Technology and content excluding stock-based
compensation
304,008
348,121
84,171
106,832
General and administrative
290,484
314,109
79,105
84,837
Less: stock-based compensation
(31,236)
(29,096)
(7,797)
(6,703)
General and administrative excluding stock-based
compensation
259,248
285,013
71,308
78,134
Costs & Expenses
(all figures in $000s)
Source: Company financial reports

EXPEDIA, INC.
Tabular Reconciliations for Non-GAAP Data
31
Q211 Company Overview
Source: Company financial reports
Free Cash Flow
(all figures in $000s)
Net cash used in operating activities
313,806
490,701
Less: capital expenditures
(43,453)
(57,961)
Free cash flow
270,353
432,740
3 months ended
June 30, 2011
3 months ended
June 30, 2010

EXPEDIA, INC.
Tabular Reconciliations for Non-GAAP Data
32
Q211 Company Overview
*TTM = Trailing Twelve Month periods ended
Source: Company financial reports
Free Cash Flow
(all figures in $000s)
TTM*
9.07
TTM
12.07
TTM
3.08
TTM
6.08
TTM
9.08
TTM
12.08
TTM
3.09
TTM
6.09
Net cash provided by operating activities
859,228
712,069
737,792
660,510
514,242
520,688
458,913
494,184
Less: capital expenditures
(82,671)
(86,658)
(101,514)
(118,417)
(148,022)
(159,827)
(150,025)
(131,146)
Free cash flow
776,557
625,411
636,278
542,093
366,220
360,861
308,888
363,038
TTM
9.09
TTM
12.09
TTM
3.10
TTM
6.10
TTM
9.10
TTM
12.10
TTM
3.11
TTM
6.11
Net cash provided by operating activities
573,491
676,004
793,527
764,787
793,389
777,483
887,046
1,063,941
Less: capital expenditures
(103,775)
(92,017)
(98,306)
(123,093)
(142,409)
(155,189)
(176,593)
(191,101)
Free cash flow
469,715
583,987
695,221
641,694
650,980
622,294
710,453
872,840

EXPEDIA, INC.
Additional Information about the
TripAdvisor Spin-Off
As previously announced, Expedia intends to spin-off its TripAdvisor Media Group businesses into a separate publicly-traded company. In
connection with the proposed spin-off, Expedia has filed a preliminary proxy statement/prospectus with the SEC. Stockholders of Expedia
are urged to read the definitive proxy statement/prospectus, when it becomes available, because it will contain important information
about
Expedia,
the
proposed
spin-off
transaction
and
related
matters.
Investors
and
security
holders
can
obtain
free
copies
of the
definitive
proxy
statement/prospectus
when
it
becomes
available
by
contacting
Investor
Relations,
Expedia,
333
108
th
Avenue
N.E.,
Bellevue, Washington 98004 (Telephone: (425) 679-3555). Investors and security holders can also obtain free copies of the proxy
statement/prospectus and other documents filed by Expedia and TripAdvisor with the SEC in connection with the proposed spin-off
transaction
at
the
SEC’s
web
site
at
www.sec.gov.
In addition to the proxy statement/prospectus, Expedia files annual, quarterly and current reports, proxy statements and other information
with
the
SEC,
each
of
which
should
be
available
at
the
SEC’s
web
site
at
www.sec.gov.
You
may
also
read
and
copy
any
reports,
statements and other information filed by Expedia at the SEC public reference room at 100 F Street NE, Washington, DC 20549. Please
call the SEC at 1-800-SEC-0330 for further information.
Expedia and its directors, executive officers and certain members of management and other employees may be deemed to be
participants in the solicitation of proxies of Expedia’s stockholders to approve the proposed spin-off transaction. Such individuals may
have interests in the transaction as described in Expedia’s proxy statement/prospectus, including as a result of current holdings of
options, restricted share units or shares of Expedia’s stock and future holdings of options, restricted share units or shares of TripAdvisor’s
stock, which will be impacted in the transaction. Information regarding Expedia and the equity interests of its directors and officers who
may be deemed to be participants in the solicitation of proxies is contained in Expedia’s preliminary proxy statement/prospectus, filed with
the SEC on July 27, 2011.
Q211 COMPANY OVERVIEW
33