Guarantor and Non-Guarantor Supplemental Financial Information (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Statement of Operations Information

CONDENSED CONSOLIDATING STATEMENT OF OPERATION

Three months ended June 30, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	974,513		$	242,095		$	(11,591	)	$	1,205,017
Costs and expenses:
Cost of revenue		—			205,011			56,126			1,470			262,607
Selling and marketing		—			392,961			210,580			(13,073	)		590,468
Technology and content		—			94,046			46,637			(1	)		140,682
General and administrative		—			47,198			44,680			13			91,891
Amortization of intangible assets		—			1,168			17,669			—			18,837
Legal reserves, occupancy tax and other		—			6,246			—			—			6,246
Acquistion-related and other		—			—			—			—			—
Intercompany (income) expense, net		—			236,796			(236,796	)		—			—
Operating income (loss)		—			(8,913	)		103,199			—			94,286
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		84,609			79,229			—			(163,838	)		—
Other, net		(20,797	)		15,238			(1,304	)		—			(6,863	)
Total other income (expense), net		63,812			94,467			(1,304	)		(163,838	)		(6,863	)
Income before income taxes		63,812			85,554			101,895			(163,838	)		87,423
Provision for income taxes		7,688			(2,825	)		(29,271	)		—			(24,408	)
Net income		71,500			82,729			72,624			(163,838	)		63,015
Net loss attributable to noncontrolling interests		—			—			8,485			—			8,485
Net income attributable to Expedia, Inc.	$	71,500		$	82,729		$	81,109		$	(163,838	)	$	71,500
Comprehensive income attributable to Expedia, Inc.	$	71,500		$	81,568		$	84,438		$	(163,838	)	$	73,668

CONDENSED CONSOLIDATING STATEMENT OF OPERATION

Three months ended June 30, 2012

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	901,215		$	139,728		$	(963	)	$	1,039,980
Costs and expenses:
Cost of revenue		—			186,929			42,680			132			229,741
Selling and marketing		—			335,070			111,085			(1,582	)		444,573
Technology and content		—			87,071			29,344			(389	)		116,026
General and administrative		—			54,733			27,609			876			83,218
Amortization of intangible assets		—			1,573			7,058			—			8,631
Legal reserves, occupancy tax and other		—			3,350			—			—			3,350
Intercompany (income) expense, net		—			171,914			(171,914	)		—			—
Operating income		—			60,575			93,866			—			154,441
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		117,025			104,448			—			(221,473	)		—
Other, net		(20,895	)		(35,556	)		36,874			—			(19,577	)
Total other income (expense), net		96,130			68,892			36,874			(221,473	)		(19,577	)
Income before income taxes		96,130			129,467			130,740			(221,473	)		134,864
Provision for income taxes		9,111			(11,324	)		(26,542	)		—			(28,755	)
Net income		105,241			118,143			104,198			(221,473	)		106,109
Net income attributable to noncontrolling interests		—			—			(868	)		—			(868	)
Net income attributable to Expedia, Inc.	$	105,241		$	118,143		$	103,330		$	(221,473	)	$	105,241
Comprehensive income attributable to Expedia, Inc.	$	105,241		$	117,868		$	79,852		$	(221,473	)	$	81,488
CONDENSED CONSOLIDATING STATEMENT OF OPERATION Six months ended June 30, 2013
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	1,824,612		$	409,230		$	(16,458	)	$	2,217,384
Costs and expenses:
Cost of revenue		—			400,491			110,548			2,149			513,188
Selling and marketing		—			748,927			356,363			(18,667	)		1,086,623
Technology and content		—			193,009			85,954			2			278,965
General and administrative		—			104,827			79,382			58			184,267
Amortization of intangible assets		—			2,481			28,926			—			31,407
Legal reserves, occupancy tax and other		—			67,804			—			—			67,804
Acquistion-related and other		—			—			66,472			—			66,472
Intercompany (income) expense, net		—			399,240			(399,240	)		—			—
Operating income (loss)		—			(92,167	)		80,825			—			(11,342	)
Other income (expense):
Equity in pre-tax earnings (losses) of consolidated subsidiaries		(8,666	)		40,901			—			(32,235	)		—
Other, net		(41,680	)		18,205			2,969			—			(20,506	)
Total other income (expense), net		(50,346	)		59,106			2,969			(32,235	)		(20,506	)
Income (loss) before income taxes		(50,346	)		(33,061	)		83,794			(32,235	)		(31,848	)
Provision for income taxes		17,620			23,880			(54,005	)		—			(12,505	)
Net income (loss)		(32,726	)		(9,181	)		29,789			(32,235	)		(44,353	)
Net loss attributable to noncontrolling interests		—			—			11,627			—			11,627
Net income (loss) attributable to Expedia, Inc.	$	(32,726	)	$	(9,181	)	$	41,416		$	(32,235	)	$	(32,726	)
Comprehensive income (loss) attributable to Expedia, Inc.	$	(32,726	)	$	(10,558	)	$	26,157		$	(32,235	)	$	(49,362	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATION

Six months ended June 30, 2012

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	1,624,735		$	234,400		$	(2,667	)	$	1,856,468
Costs and expenses:
Cost of revenue		—			356,026			73,358			455			429,839
Selling and marketing		—			616,118			209,226			(3,699	)		821,645
Technology and content		—			169,804			55,541			(408	)		224,937
General and administrative		—			106,458			54,353			985			161,796
Amortization of intangible assets		—			3,333			8,720			—			12,053
Legal reserves, occupancy tax and other		—			3,074			—			—			3,074
Intercompany (income) expense, net		—			314,661			(314,661	)		—			—
Operating income		—			55,261			147,863			—			203,124
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		149,369			138,610			—			(287,979	)		—
Other, net		(41,701	)		(35,693	)		35,961			—			(41,433	)
Total other income (expense), net		107,668			102,917			35,961			(287,979	)		(41,433	)
Income from continuing operations before income taxes		107,668			158,178			183,824			(287,979	)		161,691
Provision for income taxes		18,181			(7,005	)		(45,171	)		—			(33,995	)
Income from continuing operations		125,849			151,173			138,653			(287,979	)		127,696
Discontinued operations, net of taxes		(23,889	)		—			—			—			(23,889	)
Net income		101,960			151,173			138,653			(287,979	)		103,807
Net income attributable to noncontrolling interests		—			—			(1,847	)		—			(1,847	)
Net income attributable to Expedia, Inc.	$	101,960		$	151,173		$	136,806		$	(287,979	)	$	101,960
Comprehensive income attributable to Expedia, Inc.	$	101,960		$	151,659		$	126,909		$	(287,979	)	$	92,549

Schedule of Balance Sheet Information

CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2013
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	155,576	$	3,664,948	$	282,616	$	(839,430	)	$	3,263,710
Investment in subsidiaries		4,303,928		1,218,834		—		(5,522,762	)		—
Intangible assets, net		—		632,373		513,027		—			1,145,400
Goodwill		—		2,436,533		1,206,663		—			3,643,196
Other assets, net		4,430		520,630		166,730		—			691,790
TOTAL ASSETS	$	4,463,934	$	8,473,318	$	2,169,036	$	(6,362,192	)	$	8,744,096
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	876,343	$	3,726,825	$	447,174	$	(839,430	)	$	4,210,912
Long-term debt		1,249,378		—		—		—			1,249,378
Other liabilities		—		433,994		511,599		—			945,593
Stockholders’ equity		2,338,213		4,312,499		1,210,263		(5,522,762	)		2,338,213
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,463,934	$	8,473,318	$	2,169,036	$	(6,362,192	)	$	8,744,096

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

Schedule of Cash Flow Statement Information

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six months ended June 30, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities from continuing operations	$	—		$	558,831		$	640,777		$	1,199,608
Investing activities:
Capital expenditures, including internal-use software and website development		—			(117,537	)		(40,303	)		(157,840	)
Purchases of investments		—			(919,107	)		(210,682	)		(1,129,789	)
Sales and maturities of investments		—			554,098			218,719			772,817
Acquisitions, net of cash acquired		—			—			(540,489	)		(540,489	)
Other, net		—			24,189			(43	)		24,146
Net cash used in investing activities from continuing operations		—			(458,357	)		(572,798	)		(1,031,155	)
Financing activities:
Purchases of treasury stock		(134,238	)		—			—			(134,238	)
Proceeds from issuance of treasury stock		25,273			—			—			25,273
Proceeds from exercise of equity awards		33,566			—			1,047			34,613
Transfers (to) from related parties		83,521			(83,521	)		—			—
Other, net		(8,122	)		(7,595	)		37			(15,680	)
Net cash provided by (used in) financing activities from continuing operations		—			(91,116	)		1,084			(90,032	)
Net cash provided by continuing operations		—			9,358			69,063			78,421
Effect of exchange rate changes on cash and cash equivalents		—			(47,685	)		(12,080	)		(59,765	)
Net increase (decrease) in cash and cash equivalents		—			(38,327	)		56,983			18,656
Cash and cash equivalents at beginning of period		—			1,007,156			286,005			1,293,161
Cash and cash equivalents at end of period	$	—		$	968,829		$	342,988		$	1,311,817

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six months ended June 30, 2012

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities from continuing operations	$	—		$	1,290,763		$	109,832		$	1,400,595
Investing activities:
Capital expenditures, including internal-use software and website development		—			(95,786	)		(21,431	)		(117,217	)
Purchases of investments		—			(773,654	)		(234,091	)		(1,007,745	)
Sales and maturities of investments		—			461,527			212,788			674,315
Acquisitions, net of cash acquired		—			—			(199,267	)		(199,267	)
Other, net		—			10,460			(1,999	)		8,461
Net cash used in investing activities from continuing operations		—			(397,453	)		(244,000	)		(641,453	)
Financing activities:
Purchases of treasury stock		(297,704	)		—			—			(297,704	)
Proceeds from exercise of equity awards		224,425			—			345			224,770
Transfers (to) from related parties		80,768			(80,768	)		—			—
Other, net		(7,489	)		(5,491	)		25			(12,955	)
Net cash provided by (used in) financing activities from continuing operations		—			(86,259	)		370			(85,889	)
Net cash provided by (used in) continuing operations		—			807,051			(133,798	)		673,253
Net cash used in discontinued operations		—			(7,607	)		—			(7,607	)
Effect of exchange rate changes on cash and cash equivalents		—			(8,088	)		(3,346	)		(11,434	)
Net increase (decrease) in cash and cash equivalents		—			791,356			(137,144	)		654,212
Cash and cash equivalents at beginning of period		—			357,252			331,882			689,134
Cash and cash equivalents at end of period	$	—		$	1,148,608		$	194,738		$	1,343,346