Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

NOTE 18 — Segment Information

We have two reportable segments: Leisure and Egencia. As a result of the spin-off, our former TripAdvisor Media Group segment is included in discontinued operations and excluded from the schedules below. We determined our segments based on how our chief operating decision makers manage our business, make operating decisions and evaluate operating performance. During the fourth quarter of 2011, we changed from reporting Operating Income Before Amortization ("OIBA") as our primary operating metric to adjusted EBITDA, which excludes depreciation expense. Adjusted EBITDA for our Leisure and Egencia segments includes allocations of certain expenses, primarily cost of revenue and facilities, and our Leisure segment includes the total costs of our Partner Services Group as well as the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant hotel revenue. We base the allocations primarily on transaction volumes and other usage metrics; this methodology is periodically evaluated and may change. We do not allocate certain shared expenses such as accounting, human resources, information technology and legal to our reportable segments. We include these expenses in Corporate.

Our Leisure segment provides a full range of travel and advertising services to our worldwide customers through a variety of brands including: Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com websites throughout the world, Expedia Affiliate Network, Hotwire.com, Venere, eLong and Classic Vacations. Our Egencia segment provides managed travel services to corporate customers in North America, Europe, and the Asia Pacific region.

Corporate also includes unallocated corporate functions and expenses. In addition, we record amortization of intangible assets and any related impairment, as well as stock-based compensation expense, restructuring charges, legal reserves, occupancy tax and other, and other items excluded from segment operating performance in Corporate. Such amounts are detailed in our segment reconciliation below.

The following tables present our segment information for the years ended December 31, 2011, 2010 and 2009. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers.

	Year ended December 31, 2011
	Leisure			Egencia			Corporate			Total
	(In thousands)
Revenue	$	3,269,721		$	179,288		$	—		$	3,449,009
Adjusted EBITDA	$	849,071		$	25,981		$	(164,217	)	$	710,835
Depreciation		(47,456	)		(8,349	)		(77,204	)		(133,009	)
Amortization of intangible assets		—			—			(21,925	)		(21,925	)
Stock-based compensation		—			—			(63,847	)		(63,847	)
Legal reserves, occupancy tax and other		—			—			(20,855	)		(20,855	)
Realized loss on revenue hedges		8,410			—			—			8,410
Operating income (loss)	$	810,025		$	17,632		$	(348,048	)		479,609
Other expense, net											(77,537	)
Income from continuing operations before income taxes											402,072
Provision for income taxes											(75,731	)
Income from continuing operations											326,341
Discontinued operations, net of taxes											148,262
Net income											474,603
Net income attributable to noncontrolling interests											(2,309	)
Net income attributable to Expedia, Inc.										$	472,294

	Year ended December 31, 2010
	Leisure			Egencia			Corporate			Total
	(In thousands)
Revenue	$	2,890,611		$	143,034		$	—		$	3,033,645
Adjusted EBITDA	$	838,560		$	22,112		$	(160,190	)	$	700,482
Depreciation		(37,524	)		(7,506	)		(60,501	)		(105,531	)
Amortization of intangible assets		—			—			(22,514	)		(22,514	)
Stock-based compensation		—			—			(52,507	)		(52,507	)
Legal reserves, occupancy tax and other		—			—			(22,692	)		(22,692	)
Realized loss on revenue hedges		3,549			—			—			3,549
Operating income (loss)	$	804,585		$	14,606		$	(318,404	)		500,787
Other expense, net											(74,948	)
Income from continuing operations before income taxes											425,839
Provision for income taxes											(120,342	)
Income from continuing operations											305,497
Discontinued operations, net of taxes											120,063
Net income											425,560
Net income attributable to noncontrolling interests											(4,060	)
Net income attributable to Expedia, Inc.										$	421,500

	Year ended December 31, 2009
	Leisure			Egencia			Corporate			Total
				(In thousands)
Revenue	$	2,634,766		$	108,285		$	—		$	2,743,051
Adjusted EBITDA	$	834,246		$	6,961		$	(179,264	)	$	661,943
Depreciation		(32,686	)		(6,870	)		(53,896	)		(93,452	)
Amortization of intangible assets		—			—			(23,875	)		(23,875	)
Stock-based compensation		—			—			(55,756	)		(55,756	)
Legal reserves, occupancy tax and other		—			—			(67,999	)		(67,999	)
Restructuring charges		—			—			(34,168	)		(34,168	)
Realized loss on revenue hedges		11,050			—			—			11,050
Operating income (loss)	$	812,610		$	91		$	(414,958	)		397,743
Other expense, net											(77,967	)
Income from continuing operations before income taxes											319,776
Provision for income taxes											(101,502	)
Income from continuing operations											218,274
Discontinued operations, net of taxes											85,349
Net income											303,623
Net income attributable to noncontrolling interests											(4,097	)
Net income attributable to Expedia, Inc.											299,526

Geographic Information

The following table presents revenue by geographic area, the United States and all other countries, based on the geographic location of our websites or points of sale for the years ended December 31, 2011, 2010 and 2009:

	Year Ended December 31,
	2011		2010		2009
	(In thousands)
Revenue
United States	$	1,995,783	$	1,872,810	$	1,712,084
All other countries		1,453,226		1,160,835		1,030,967
	$	3,449,009	$	3,033,645	$	2,743,051

The following table presents property and equipment, net for the United States and all other countries, as of December 31, 2011 and 2010:

	As of December 31,
	2011		2010
	(In thousands)
Property and equipment, net
United States	$	287,471	$	221,030
All other countries		32,811		25,287
	$	320,282	$	246,317