Guarantor and Non-Guarantor Supplemental Financial Information (Tables)

3 Months Ended

Mar. 31, 2013

CONDENSED CONSOLIDATING STATEMENT OF OPERATION

Three months ended March 31, 2013


	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	850,099		$	167,135		$	(4,867	)	$	1,012,367
Costs and expenses:
Cost of revenue		—			195,480			54,422			679			250,581
Selling and marketing		—			355,966			145,783			(5,594	)		496,155
Technology and content		—			98,963			39,317			3			138,283
General and administrative		—			57,629			34,702			45			92,376
Amortization of intangible assets		—			1,313			11,257			—			12,570
Legal reserves, occupancy tax and other		—			61,558			—			—			61,558
Acquistion-related and other		—			—			66,472			—			66,472
Intercompany (income) expense, net		—			162,444			(162,444	)		—			—

Operating loss		—			(83,254	)		(22,374	)		—			(105,628	)
Other income (expense):
Equity in pre-tax losses of consolidated subsidiaries		(93,275	)		(38,328	)		—			131,603			—
Other, net		(20,883	)		2,967			4,273			—			(13,643	)

Total other income (expense), net		(114,158	)		(35,361	)		4,273			131,603			(13,643	)

Loss before income taxes		(114,158	)		(118,615	)		(18,101	)		131,603			(119,271	)
Provision for income taxes		9,932			26,705			(24,734	)		—			11,903

Net loss		(104,226	)		(91,910	)		(42,835	)		131,603			(107,368	)
Net loss attributable to noncontrolling interests		—			—			3,142			—			3,142

Net loss attributable to Expedia, Inc.	$	(104,226	)	$	(91,910	)	$	(39,693	)	$	131,603		$	(104,226	)

Comprehensive loss attributable to Expedia, Inc.	$	(104,226	)	$	(92,126	)	$	(63,541	)	$	131,603		$	(128,290	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATION

Three months ended March 31, 2012


	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	723,520		$	94,672		$	(1,704	)	$	816,488
Costs and expenses:
Cost of revenue		—			169,097			30,678			323			200,098
Selling and marketing		—			281,048			98,141			(2,117	)		377,072
Technology and content		—			82,733			26,197			(19	)		108,911
General and administrative		—			51,725			26,744			109			78,578
Amortization of intangible assets		—			1,760			1,662			—			3,422
Legal reserves, occupancy tax and other		—			(276	)		—			—			(276	)
Intercompany (income) expense, net		—			142,747			(142,747	)		—			—

Operating income (loss)		—			(5,314	)		53,997			—			48,683
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		32,344			34,162			—			(66,506	)		—
Other, net		(20,806	)		(137	)		(913	)		—			(21,856	)

Total other income (expense), net		11,538			34,025			(913	)		(66,506	)		(21,856	)

Income before income taxes		11,538			28,711			53,084			(66,506	)		26,827
Provision for income taxes		9,070			4,319			(18,629	)		—			(5,240	)

Income from continuing operations		20,608			33,030			34,455			(66,506	)		21,587
Discontinued operations, net of taxes		(23,889	)		—			—			—			(23,889	)

Net income (loss)		(3,281	)		33,030			34,455			(66,506	)		(2,302	)
Net income attributable to noncontrolling interests		—			—			(979	)		—			(979	)

Net income (loss) attributable to Expedia, Inc.	$	(3,281	)	$	33,030		$	33,476		$	(66,506	)	$	(3,281	)

Comprehensive income (loss) attributable to Expedia, Inc.	$	(3,281	)	$	33,791		$	47,057		$	(66,506	)	$	11,061

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2013


	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	147,888	$	3,526,996	$	147,425	$	(841,438	)	$	2,980,871
Investment in subsidiaries		4,224,101		1,134,987		—		(5,359,088	)		—
Intangible assets, net		—		633,540		530,288		—			1,163,828
Goodwill		—		2,436,533		1,205,565		—			3,642,098
Other assets, net		4,611		471,610		169,402		—			645,623

TOTAL ASSETS	$	4,376,600	$	8,203,666	$	2,052,680	$	(6,200,526	)	$	8,432,420

LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	857,008	$	3,559,520	$	409,217	$	(841,438	)	$	3,984,307
Long-term debt		1,249,361		—		—		—			1,249,361
Other liabilities		—		412,662		515,859		—			928,521
Stockholders’ equity		2,270,231		4,231,484		1,127,604		(5,359,088	)		2,270,231

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,376,600	$	8,203,666	$	2,052,680	$	(6,200,526	)	$	8,432,420

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 STATEMENT OF CASH FLOWS

Three months ended March 31, 2013


	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities from continuing operations	$	—		$	285,940		$	595,149		$	881,089

Investing activities:
Capital expenditures, including internal-use software and website development		—			(57,350	)		(29,806	)		(87,156	)
Purchases of investments		—			(532,019	)		(66,108	)		(598,127	)
Sales and maturities of investments		—			166,023			79,221			245,244
Acquisitions, net of cash acquired		—			—			(540,489	)		(540,489	)
Other, net		—			5,808			—			5,808

Net cash used in investing activities from continuing operations		—			(417,538	)		(557,182	)		(974,720	)

Financing activities:
Purchases of treasury stock		(117,672	)		—			—			(117,672	)
Proceeds from issuance of treasury stock		25,273			—			—			25,273
Transfers (to) from related parties		70,918			(70,918	)		—			—
Other, net		21,481			(7,750	)		317			14,048

Net cash provided by (used in) financing activities from continuing operations		—			(78,668	)		317			(78,351	)

Net cash provided by (used in) continuing operations		—			(210,266	)		38,284			(171,982	)
Effect of exchange rate changes on cash and cash equivalents		—			(37,808	)		(573	)		(38,381	)

Net decrease (increase) in cash and cash equivalents		—			(248,074	)		37,711			(210,363	)
Cash and cash equivalents at beginning of period		—			1,007,156			286,005			1,293,161

Cash and cash equivalents at end of period	$	—		$	759,082		$	323,716		$	1,082,798

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three months ended March 31, 2012


	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities from continuing operations	$	—		$	832,140		$	15,676		$	847,816

Investing activities:
Capital expenditures, including internal-use software and website development		—			(41,917	)		(8,897	)		(50,814	)
Purchases of investments		—			(226,114	)		(67,076	)		(293,190	)
Sales and maturities of investments		—			196,501			44,140			240,641
Other, net		—			6,637			(1,031	)		5,606

Net cash used in investing activities from continuing operations		—			(64,893	)		(32,864	)		(97,757	)

Financing activities:
Purchases of treasury stock		(198,164	)		—			—			(198,164	)
Transfers (to) from related parties		171,176			(171,176	)		—			—
Other, net		26,988			(4,190	)		115			22,913

Net cash provided by (used in) financing activities from continuing operations		—			(175,366	)		115			(175,251	)

Net cash provided by (used in) continuing operations		—			591,881			(17,073	)		574,808
Net cash used in discontinued operations		—			(7,607	)		—			(7,607	)
Effect of exchange rate changes on cash and cash equivalents		—			13,153			3,020			16,173

Net increase (decrease) in cash and cash equivalents		—			597,427			(14,053	)		583,374
Cash and cash equivalents at beginning of period		—			357,252			331,882			689,134

Cash and cash equivalents at end of period	$	—		$	954,679		$	317,829		$	1,272,508