Guarantor and Non-Guarantor Supplemental Financial Information (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Statement of Operations Information

CONDENSED CONSOLIDATING STATEMENT OF OPERATION

Year Ended December 31, 2012

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	3,490,462		$	546,204		$	(6,319	)	$	4,030,347
Costs and expenses:
Cost of revenue		—			719,121			178,010			1,473			898,604
Selling and marketing		—			1,271,163			458,565			(8,691	)		1,721,037
Technology and content		—			355,567			129,860			(529	)		484,898
General and administrative		—			220,360			123,566			1,428			345,354
Amortization of intangible assets		—			6,444			25,261			—			31,705
Legal reserves, occupancy tax and other		—			117,025			—			—			117,025
Intercompany (income) expense, net		—			692,325			(692,325	)		—			—
Operating income		—			108,457			323,267			—			431,724
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		356,110			336,173			—			(692,283	)		—
Other, net		(83,306	)		(25,079	)		26,718			—			(81,667	)
Total other income (expense), net		272,804			311,094			26,718			(692,283	)		(81,667	)
Income before income taxes		272,804			419,551			349,985			(692,283	)		350,057
Provision for income taxes		29,906			(60,245	)		(16,739	)		—			(47,078	)
Income from continuing operations		302,710			359,306			333,246			(692,283	)		302,979
Discontinued operations, net of taxes		(22,539	)		—			—			—			(22,539	)
Net income		280,171			359,306			333,246			(692,283	)		280,440
Net income attributable to noncontrolling interests		—			—			(269	)		—			(269	)
Net income attributable to Expedia, Inc.	$	280,171		$	359,306		$	332,977		$	(692,283	)	$	280,171
Comprehensive income attributable to Expedia, Inc.	$	280,171		$	359,921		$	349,734		$	(692,283	)	$	297,543

CONDENSED CONSOLIDATING STATEMENT OF OPERATION

Year Ended December 31, 2011

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	3,041,755		$	424,018		$	(16,764	)	$	3,449,009
Costs and expenses:
Cost of revenue		—			648,219			111,868			1,185			761,272
Selling and marketing		—			1,088,145			404,409			(17,913	)		1,474,641
Technology and content		—			297,859			83,388			(248	)		380,999
General and administrative		—			213,594			95,902			212			309,708
Amortization of intangible assets		—			4,988			16,937			—			21,925
Legal reserves, occupancy tax and other		—			20,855			—			—			20,855
Intercompany (income) expense, net		—			597,105			(597,105	)		—			—
Operating income		—			170,990			308,619			—			479,609
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		382,403			244,429			—			(626,832	)		—
Other, net		(83,421	)		44,288			(38,404	)		—			(77,537	)
Total other income (expense), net		298,982			288,717			(38,404	)		(626,832	)		(77,537	)
Income before income taxes		298,982			459,707			270,215			(626,832	)		402,072
Provision for income taxes		25,050			(73,165	)		(27,616	)		—			(75,731	)
Income from continuing operations		324,032			386,542			242,599			(626,832	)		326,341
Discontinued operations, net of taxes		148,262			140,200			32,464			(172,664	)		148,262
Net income		472,294			526,742			275,063			(799,496	)		474,603
Net income attributable to noncontrolling interests		—			—			(2,309	)		—			(2,309	)
Net income attributable to Expedia, Inc.	$	472,294		$	526,742		$	272,754		$	(799,496	)	$	472,294
Comprehensive income attributable to Expedia, Inc.	$	472,294		$	522,778		$	268,171		$	(799,496	)	$	463,747

CONDENSED CONSOLIDATING STATEMENT OF OPERATION

Year Ended December 31, 2010

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	2,679,420		$	366,408		$	(12,183	)	$	3,033,645
Costs and expenses:
Cost of revenue		—			590,236			96,372			(1,121	)		685,487
Selling and marketing		—			917,344			328,683			(11,246	)		1,234,781
Technology and content		—			255,306			53,416			58			308,780
General and administrative		—			181,920			76,558			126			258,604
Amortization of intangible assets		—			5,071			17,443			—			22,514
Legal reserves, occupancy tax and other		—			22,692			—			—			22,692
Intercompany (income) expense, net		—			347,361			(347,361	)		—			—
Operating income		—			359,490			141,297			—			500,787
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		341,750			120,085			—			(461,835	)		—
Other, net		(56,193	)		(18,358	)		(397	)		—			(74,948	)
Total other income (expense), net		285,557			101,727			(397	)		(461,835	)		(74,948	)
Income before income taxes		285,557			461,217			140,900			(461,835	)		425,839
Provision for income taxes		15,880			(115,126	)		(21,096	)		—			(120,342	)
Income from continuing operations		301,437			346,091			119,804			(461,835	)		305,497
Discontinued operations, net of taxes		120,063			142,150			78,470			(220,620	)		120,063
Net income		421,500			488,241			198,274			(682,455	)		425,560
Net income attributable to noncontrolling interests		—			—			(4,060	)		—			(4,060	)
Net income attributable to Expedia, Inc.	$	421,500		$	488,241		$	194,214		$	(682,455	)	$	421,500
Comprehensive income attributable to Expedia, Inc.	$	421,500		$	488,589		$	181,684		$	(682,455	)	$	409,318

Schedule of Balance Sheet Information

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2012

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	137,942	$	2,674,496	$	675,026	$	(872,962	)	$	2,614,502
Investment in subsidiaries		4,277,954		1,188,871		—		(5,466,825	)		—
Intangible assets, net		—		634,853		186,566		—			821,419
Goodwill		—		2,436,533		579,137		—			3,015,670
Other assets, net		4,790		473,439		155,375		—			633,604
TOTAL ASSETS	$	4,420,686	$	7,408,192	$	1,596,104	$	(6,339,787	)	$	7,085,195
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	781,953	$	2,708,755	$	364,565	$	(872,962	)	$	2,982,311
Long-term debt		1,249,345		—		—		—			1,249,345
Other liabilities		—		415,465		48,686		—			464,151
Stockholders’ equity		2,389,388		4,283,972		1,182,853		(5,466,825	)		2,389,388
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,420,686	$	7,408,192	$	1,596,104	$	(6,339,787	)	$	7,085,195

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2011

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	551,488	$	1,538,509	$	644,825	$	(460,393	)	$	2,274,429
Investment in subsidiaries		3,891,811		1,126,412		—		(5,018,223	)		—
Intangible assets, net		—		634,581		109,317		—			743,898
Goodwill		—		2,415,482		461,819		—			2,877,301
Other assets, net		5,587		465,473		138,570		—			609,630
TOTAL ASSETS	$	4,448,886	$	6,180,457	$	1,354,531	$	(5,478,616	)	$	6,505,258
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	894,438	$	1,906,349	$	212,963	$	(460,393	)	$	2,553,357
Long-term debt		1,249,281		—		—		—			1,249,281
Other liabilities		—		378,729		18,724		—			397,453
Stockholders’ equity		2,305,167		3,895,379		1,122,844		(5,018,223	)		2,305,167
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,448,886	$	6,180,457	$	1,354,531	$	(5,478,616	)	$	6,505,258

Schedule of Cash Flow Statement Information

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2012

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities from continuing operations	$	—		$	1,008,600		$	228,582		$	1,237,182
Investing activities:
Capital expenditures, including internal-use software and website development		—			(191,423	)		(44,274	)		(235,697	)
Purchases of investments		—			(1,518,142	)		(355,377	)		(1,873,519	)
Sales and maturities of investments		—			1,628,365			327,590			1,955,955
Acquisitions, net of cash acquired		—			—			(199,360	)		(199,360	)
Other, net		—			(12,954	)		(2,250	)		(15,204	)
Net cash used in investing activities from continuing operations		—			(94,154	)		(273,671	)		(367,825	)
Financing activities:
Treasury stock activity		(417,571	)		—			—			(417,571	)
Payment of dividends to stockholders		(130,423	)		—			—			(130,423	)
Proceeds from exercise of equity awards		238,001			—			3,192			241,193
Transfers (to) from related parties		268,893			(268,893	)		—			—
Other, net		41,100			(2,292	)		(4,794	)		34,014
Net cash used in financing activities from continuing operations		—			(271,185	)		(1,602	)		(272,787	)
Net cash provided by (used in) continuing operations		—			643,261			(46,691	)		596,570
Net cash used in discontinued operations		—			(7,607	)		—			(7,607	)
Effect of exchange rate changes on cash and cash equivalents		—			14,250			814			15,064
Net increase (decrease) in cash and cash equivalents		—			649,904			(45,877	)		604,027
Cash and cash equivalents at beginning of year		—			357,252			331,882			689,134
Cash and cash equivalents at end of year	$	—		$	1,007,156		$	286,005		$	1,293,161

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2011

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities from continuing operations	$	—		$	527,448		$	298,281		$	825,729
Investing activities:
Capital expenditures, including internal-use software and website development		—			(179,159	)		(28,678	)		(207,837	)
Purchases of investments		—			(1,425,578	)		(297,772	)		(1,723,350	)
Sales and maturities of investments		—			1,359,439			147,801			1,507,240
Other, net		—			(6,190	)		(33,323	)		(39,513	)
Net cash used in investing activities from continuing operations		—			(251,488	)		(211,972	)		(463,460	)
Financing activities:
Treasury stock activity		(294,027	)		—			—			(294,027	)
Payment of dividends to stockholders		(76,550	)		—			—			(76,550	)
Purchase of additional interests in controlled subsidiaries, net		—			—			(22,485	)		(22,485	)
Transfers (to) from related parties		333,303			(333,303	)		—			—
Other, net		37,274			(4,285	)		6,579			39,568
Net cash used in financing activities from continuing operations		—			(337,588	)		(15,906	)		(353,494	)
Net cash provided by (used in) continuing operations		—			(61,628	)		70,403			8,775
Net cash provided by discontinued operations		—			76,903			—			76,903
Effect of exchange rate changes on cash and cash equivalents		—			(19,539	)		1,796			(17,743	)
Net increase (decrease) in cash and cash equivalents		—			(4,264	)		72,199			67,935
Cash and cash equivalents at beginning of year		—			361,516			259,683			621,199
Cash and cash equivalents at end of year	$	—		$	357,252		$	331,882		$	689,134

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2010

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities from continuing operations	$	—		$	378,370		$	227,017		$	605,387
Investing activities:
Capital expenditures, including internal-use software and website development		—			(121,687	)		(14,689	)		(136,376	)
Purchases of investments		—			(846,344	)		(123,995	)		(970,339	)
Sales and maturities of investments		—			282,450			83,586			366,036
Other, net		—			14,938			(18,606	)		(3,668	)
Net cash used in investing activities from continuing operations		—			(670,643	)		(73,704	)		(744,347	)
Financing activities:
Proceeds from issuance of long-term debt, net of issuance costs		742,470			—			—			742,470
Treasury stock activity		(501,993	)		—			—			(501,993	)
Payment of dividends to stockholders		(79,076	)		—			—			(79,076	)
Purchase of additional interests in controlled subsidiaries, net		—			—			(77,929	)		(77,929	)
Transfers (to) from related parties		(219,556	)		219,556			—			—
Other, net		58,155			(12,959	)		(808	)		44,388
Net cash provided by (used in) financing activities from continuing operations		—			206,597			(78,737	)		127,860
Net cash provided by (used in) continuing operations		—			(85,676	)		74,576			(11,100	)
Net cash provided by discontinued operations		—			40,999			—			40,999
Effect of exchange rate changes on cash and cash equivalents		—			(13,958	)		(5,922	)		(19,880	)
Net increase (decrease) in cash and cash equivalents		—			(58,635	)		68,654			10,019
Cash and cash equivalents at beginning of year		—			420,151			191,029			611,180
Cash and cash equivalents at end of year	$	—		$	361,516		$	259,683		$	621,199