Guarantor and Non-Guarantor Supplemental Financial Information (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Statement of Operations Information

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	4,500,723		$	1,389,979		$	(127,217	)	$	5,763,485
Costs and expenses:
Cost of revenue		—			898,647			274,788			5,646			1,179,081
Selling and marketing		—			1,913,719			1,027,798			(133,188	)		2,808,329
Technology and content		—			472,762			213,159			233			686,154
General and administrative		—			243,793			181,228			352			425,373
Amortization of intangible assets		—			1,848			77,767			—			79,615
Legal reserves, occupancy tax and other		—			41,539			—			—			41,539
Restructuring and related reorganization charges		—			5,020			20,610			—			25,630
Intercompany (income) expense, net		—			666,675			(666,415	)		(260	)		—
Operating income		—			256,720			261,044			—			517,764
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		455,831			282,769			—			(738,600	)		—
Other, net		(91,569	)		34,223			4,223			—			(53,123	)
Total other income (expense), net		364,262			316,992			4,223			(738,600	)		(53,123	)
Income before income taxes		364,262			573,712			265,267			(738,600	)		464,641
Provision for income taxes		33,835			(110,929	)		(14,597	)		—			(91,691	)
Net income		398,097			462,783			250,670			(738,600	)		372,950
Net loss attributable to noncontrolling interests		—			—			25,147			—			25,147
Net income attributable to Expedia, Inc.	$	398,097		$	462,783		$	275,817		$	(738,600	)	$	398,097
Comprehensive income attributable to Expedia, Inc.	$	398,097		$	463,075		$	118,554		$	(738,600	)	$	241,126

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	3,849,746		$	970,087		$	(48,574	)	$	4,771,259
Costs and expenses:
Cost of revenue		—			797,801			235,753			4,480			1,038,034
Selling and marketing		—			1,492,370			756,767			(52,992	)		2,196,145
Technology and content		—			399,763			178,052			5			577,820
General and administrative		—			216,551			160,594			(67	)		377,078
Amortization of intangible assets		—			3,042			68,689			—			71,731
Acquistion-related and other		—			—			66,472			—			66,472
Legal reserves, occupancy tax and other		—			77,919			—			—			77,919
Intercompany (income) expense, net		—			731,867			(731,867	)		—			—
Operating income		—			130,433			235,627			—			366,060
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		285,456			234,869			—			(520,325	)		—
Other, net		(83,006	)		7,394			10,245			—			(65,367	)
Total other income (expense), net		202,450			242,263			10,245			(520,325	)		(65,367	)
Income before income taxes		202,450			372,696			245,872			(520,325	)		300,693
Provision for income taxes		30,400			(81,170	)		(33,565	)		—			(84,335	)
Net income		232,850			291,526			212,307			(520,325	)		216,358
Net loss attributable to noncontrolling interests		—			—			16,492			—			16,492
Net income attributable to Expedia, Inc.	$	232,850		$	291,526		$	228,799		$	(520,325	)	$	232,850
Comprehensive income attributable to Expedia, Inc.	$	232,850		$	290,857		$	247,643		$	(520,325	)	$	251,025

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

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

Schedule of Balance Sheet Information

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2014

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	189,203	$	3,938,831	$	1,064,981	$	(2,268,526	)	$	2,924,489
Investment in subsidiaries		4,689,302		1,338,089		—		(6,027,391	)		—
Intangible assets, net		—		637,986		652,101		—			1,290,087
Goodwill		—		2,436,533		1,519,368		—			3,955,901
Other assets, net		7,082		583,782		259,197		—			850,061
TOTAL ASSETS	$	4,885,587	$	8,935,221	$	3,495,647	$	(8,295,917	)	$	9,020,538
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	1,245,071	$	3,707,638	$	1,502,432	$	(2,268,526	)	$	4,186,615
Long-term debt		1,746,787		—		—		—			1,746,787
Other liabilities		—		516,365		116,969		—			633,334
Redeemable noncontrolling interests		—		—		560,073		—			560,073
Stockholders’ equity		1,893,729		4,711,218		1,316,173		(6,027,391	)		1,893,729
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,885,587	$	8,935,221	$	3,495,647	$	(8,295,917	)	$	9,020,538

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2013

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	155,368	$	2,970,417	$	986,293	$	(1,892,791	)	$	2,219,287
Investment in subsidiaries		4,622,473		1,454,747		—		(6,077,220	)		—
Intangible assets, net		—		639,834		471,207		—			1,111,041
Goodwill		—		2,436,533		1,227,141		—			3,663,674
Other assets, net		4,069		538,572		202,838		—			745,479
TOTAL ASSETS	$	4,781,910	$	8,040,103	$	2,887,479	$	(7,970,011	)	$	7,739,481
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	1,273,513	$	2,970,916	$	942,743	$	(1,892,791	)	$	3,294,381
Long-term debt		1,249,412		—		—		—			1,249,412
Other liabilities		—		432,877		138,955		—			571,832
Redeemable noncontrolling interests		—		—		364,871		—			364,871
Stockholders’ equity		2,258,985		4,636,310		1,440,910		(6,077,220	)		2,258,985
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,781,910	$	8,040,103	$	2,887,479	$	(7,970,011	)	$	7,739,481

Schedule of Cash Flow Statement Information

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities from continuing operations	$	—		$	1,027,571		$	339,388		$	1,366,959
Investing activities:
Capital expenditures, including internal-use software and website development		—			(281,696	)		(46,691	)		(328,387	)
Purchases of investments		—			(913,205	)		(281,005	)		(1,194,210	)
Sales and maturities of investments		—			861,744			300,813			1,162,557
Acquisitions, net of cash acquired		—			—			(560,668	)		(560,668	)
Other, net		—			(2,805	)		(744	)		(3,549	)
Net cash used in investing activities from continuing operations		—			(335,962	)		(588,295	)		(924,257	)
Financing activities:
Proceeds from issuance of long-term debt, net of issuance costs		492,894			—			—			492,894
Purchases of treasury stock		(537,861	)		—			—			(537,861	)
Proceeds from issuance of treasury stock		20,404									20,404
Payment of dividends to stockholders		(84,697	)		—			—			(84,697	)
Proceeds from exercise of equity awards and employee stock purchase plan		104,598			—			3,523			108,121
Transfers (to) from related parties		(53,494	)		(287,394	)		340,888			—
Other, net		58,156			(2,124	)		(6,744	)		49,288
Net cash provided by (used in) financing activities from continuing operations		—			(289,518	)		337,667			48,149
Effect of exchange rate changes on cash and cash equivalents		—			(64,798	)		(44,386	)		(109,184	)
Net increase in cash and cash equivalents		—			337,293			44,374			381,667
Cash and cash equivalents at beginning of year		—			606,683			414,350			1,021,033
Cash and cash equivalents at end of year	$	—		$	943,976		$	458,724		$	1,402,700

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities from continuing operations	$	—		$	305,174		$	458,026		$	763,200
Investing activities:
Capital expenditures, including internal-use software and website development		—			(243,428	)		(65,153	)		(308,581	)
Purchases of investments		—			(932,011	)		(284,580	)		(1,216,591	)
Sales and maturities of investments		—			1,193,948			308,628			1,502,576
Acquisitions, net of cash acquired		—			—			(541,247	)		(541,247	)
Other, net		—			40,850			(2,520	)		38,330
Net cash provided by (used in) investing activities from continuing operations		—			59,359			(584,872	)		(525,513	)
Financing activities:
Purchases of treasury stock		(522,900	)		—			—			(522,900	)
Proceeds from issuance of treasury stock		25,273			—			—			25,273
Payment of dividends to stockholders		(75,760	)		—			—			(75,760	)
Proceeds from exercise of equity awards and employee stock purchase plan		52,134			—			4,702			56,836
Transfers (to) from related parties		482,975			(754,948	)		271,973			—
Other, net		38,278			7,565			(21,808	)		24,035
Net cash provided by (used in) financing activities from continuing operations		—			(747,383	)		254,867			(492,516	)
Net cash provided by (used in) continuing operations		—			(382,850	)		128,021			(254,829	)
Net cash provided by discontinued operations		—			13,637			—			13,637
Effect of exchange rate changes on cash and cash equivalents		—			(31,260	)		324			(30,936	)
Net increase (decrease) in cash and cash equivalents		—			(400,473	)		128,345			(272,128	)
Cash and cash equivalents at beginning of year		—			1,007,156			286,005			1,293,161
Cash and cash equivalents at end of year	$	—		$	606,683		$	414,350		$	1,021,033

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:
Purchases of treasury stock		(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