Guarantor and Non-Guarantor Supplemental Financial Information (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Statement of Operations Information

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Three months ended June 30, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	1,695,662		$	565,245		$	(65,038	)	$	2,195,869
Costs and expenses:
Cost of revenue		—			322,020			87,411			(3,051	)		406,380
Selling and marketing		—			790,376			426,742			(62,125	)		1,154,993
Technology and content		—			220,548			97,273			100			317,921
General and administrative		—			107,265			85,252			38			192,555
Amortization of intangible assets		—			59,990			24,191			—			84,181
Legal reserves, occupancy tax and other		—			4,344			—			—			4,344
Restructuring and related reorganization charges		—			3,518			6,315			—			9,833
Intercompany (income) expense, net		—			192,684			(192,684	)		—			—
Operating income (loss)		—			(5,083	)		30,745			—			25,662
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		57,308			48,411			—			(105,719	)		—
Other, net		(40,695	)		8,879			(6,041	)		—			(37,857	)
Total other income (expense), net		16,613			57,290			(6,041	)		(105,719	)		(37,857	)
Income before income taxes		16,613			52,207			24,704			(105,720	)		(12,195	)
Provision for income taxes		15,036			8,106			(4,940	)		—			18,202
Net income		31,649			60,313			19,764			(105,720	)		6,007
Net loss attributable to noncontrolling interests		—			—			25,642			—			25,642
Net income attributable to Expedia, Inc.	$	31,649		$	60,313		$	45,406		$	(105,720	)	$	31,649
Comprehensive income attributable to Expedia, Inc.	$	40,190		$	60,031		$	24,949		$	(105,720	)	$	19,450

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Three months ended June 30, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries(1)			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	1,281,820		$	431,840		$	(51,060	)	$	1,662,600
Costs and expenses:
Cost of revenue		—			242,750			80,851			(2,519	)		321,082
Selling and marketing		—			602,621			331,600			(48,741	)		885,480
Technology and content		—			128,593			57,891			32			186,516
General and administrative		—			81,674			59,552			168			141,394
Amortization of intangible assets		—			2,795			24,085			—			26,880
Legal reserves, occupancy tax and other		—			5,510			—			—			5,510
Restructuring and related reorganization charges		—			(773	)		6,419			—			5,646
Intercompany (income) expense, net		—			196,828			(196,828	)		—			—
Operating income		—			21,822			68,270			—			90,092
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		466,986			529,635			—			(996,621	)		—
Other, net		(27,506	)		(24,758	)		520,229			—			467,965
Total other income (expense), net		439,480			504,877			520,229			(996,621	)		467,965
Income before income taxes		439,480			526,699			588,499			(996,621	)		558,057
Provision for income taxes		10,164			(57,230	)		(84,155	)		—			(131,221	)
Net income		449,644			469,469			504,344			(996,621	)		426,836
Net loss attributable to noncontrolling interests		—			—			22,808			—			22,808
Net income attributable to Expedia, Inc.	$	449,644		$	469,469		$	527,152		$	(996,621	)	$	449,644
Comprehensive income attributable to Expedia, Inc.	$	436,924		$	445,247		$	546,882		$	(996,621	)	$	432,432

(1) Includes results of eLong through its disposal on May 22, 2015.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Six months ended June 30, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	3,169,545		$	1,057,553		$	(127,268	)	$	4,099,830
Costs and expenses:
Cost of revenue		—			640,168			174,936			(6,154	)		808,950
Selling and marketing		—			1,518,463			797,215			(121,337	)		2,194,341
Technology and content		—			438,723			170,581			171			609,475
General and administrative		—			201,232			137,282			52			338,566
Amortization of intangible assets		—			115,819			58,361			—			174,180
Legal reserves, occupancy tax and other		—			6,318			—			—			6,318
Restructuring and related reorganization charges		—			23,777			15,859			—			39,636
Intercompany (income) expense, net		—			368,373			(368,373	)		—			—
Operating income (loss)		—			(143,328	)		71,692			—			(71,636	)
Other income (expense):
Equity in pre-tax earnings (losses) of consolidated subsidiaries		(25,295	)		94,690			—			(69,395	)		—
Other, net		(81,911	)		(32,389	)		7,855			—			(106,445	)
Total other income (expense), net		(107,206	)		62,301			7,855			(69,395	)		(106,445	)
Income (loss) before income taxes		(107,206	)		(81,027	)		79,547			(69,396	)		(178,081	)
Provision for income taxes		30,266			61,199			(15,909	)		—			75,556
Net income (loss)		(76,940	)		(19,828	)		63,638			(69,396	)		(102,525	)
Net loss attributable to noncontrolling interests		—			—			25,585			—			25,585
Net income (loss) attributable to Expedia, Inc.	$	(76,940	)	$	(19,828	)	$	89,223		$	(69,396	)	$	(76,940	)
Comprehensive income (loss) attributable to Expedia, Inc.	$	(84,632	)	$	(19,174	)	$	81,590		$	(69,396	)	$	(91,612	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Six months ended June 30, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries(1)			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	2,350,160		$	781,063		$	(95,226	)	$	3,035,997
Costs and expenses:
Cost of revenue		—			482,938			163,551			(3,489	)		643,000
Selling and marketing		—			1,123,380			617,580			(92,099	)		1,648,861
Technology and content		—			258,516			118,406			49			376,971
General and administrative		—			151,870			105,608			313			257,791
Amortization of intangible assets		—			4,476			47,446			—			51,922
Legal reserves, occupancy tax and other		—			8,039			—			—			8,039
Restructuring and related reorganization charges		—			131			10,191			—			10,322
Intercompany (income) expense, net		—			359,846			(359,846	)		—			—
Operating income (loss)		—			(39,036	)		78,127			—			39,091
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries		528,063			596,815			—			(1,124,878	)		—
Other, net		(54,365	)		27,539			577,443			—			550,617
Total other income (expense), net		473,698			624,354			577,443			(1,124,878	)		550,617
Income before income taxes		473,698			585,318			655,570			(1,124,878	)		589,708
Provision for income taxes		20,089			(52,471	)		(97,929	)		—			(130,311	)
Net income		493,787			532,847			557,641			(1,124,878	)		459,397
Net loss attributable to noncontrolling interests		—			—			34,390			—			34,390
Net income attributable to Expedia, Inc.	$	493,787		$	532,847		$	592,031		$	(1,124,878	)	$	493,787
Comprehensive income attributable to Expedia, Inc.	$	481,067		$	508,802		$	510,878		$	(1,124,878	)	$	375,869

(1) Includes results of eLong through its disposal on May 22, 2015.

Schedule of Balance Sheet Information

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2016

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	263,607	$	3,512,056	$	1,433,736	$	(1,045,422	)	$	4,163,977
Investment in subsidiaries		8,043,599		1,762,251		—		(9,805,850	)		—
Intangible assets, net		—		2,054,909		591,130		—			2,646,039
Goodwill		—		6,830,839		1,188,936		—			8,019,775
Other assets, net		1,982		1,524,063		392,618		(19,912	)		1,898,751
TOTAL ASSETS	$	8,309,188	$	15,684,118	$	3,606,420	$	(10,871,184	)	$	16,728,542
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	845,419	$	6,904,371	$	742,387	$	(1,045,422	)	$	7,446,755
Long-term debt		3,196,847		—		—		—			3,196,847
Other liabilities		—		699,331		154,767		(19,912	)		834,186
Redeemable noncontrolling interests		—		—		983,832		—			983,832
Stockholders’ equity		4,266,922		8,080,416		1,725,434		(9,805,850	)		4,266,922
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	8,309,188	$	15,684,118	$	3,606,420	$	(10,871,184	)	$	16,728,542

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2015

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	230,840	$	2,261,450	$	1,201,064	$	(717,093	)	$	2,976,261
Investment in subsidiaries		8,420,890		3,106,719		—		(11,527,609	)		—
Intangible assets, net		—		1,974,968		818,986		—			2,793,954
Goodwill		—		5,859,457		2,133,484		—			7,992,941
Other assets, net		33		1,381,837		354,482		(13,833	)		1,722,519
TOTAL ASSETS	$	8,651,763	$	14,584,431	$	4,508,016	$	(12,258,535	)	$	15,485,675
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	538,856	$	5,511,639	$	592,615	$	(717,093	)	$	5,926,017
Long-term debt		3,183,140		—		—		—			3,183,140
Other liabilities		—		620,685		181,421		(13,833	)		788,273
Redeemable noncontrolling interests		—		—		658,478		—			658,478
Stockholders’ equity		4,929,767		8,452,107		3,075,502		(11,527,609	)		4,929,767
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	8,651,763	$	14,584,431	$	4,508,016	$	(12,258,535	)	$	15,485,675

Schedule of Cash Flow Statement Information

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six months ended June 30, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities	$	—		$	1,527,488		$	198,609		$	1,726,097
Investing activities:
Capital expenditures, including internal-use software and website development		—			(341,818	)		(38,163	)		(379,981	)
Transfers (to) from related parties		—			(172,731	)		172,731			—
Purchases of investments		—			—			(20,446	)		(20,446	)
Sales and maturities of investments		—			22,758			—			22,758
Other, net		—			(19,081	)		2,222			(16,859	)
Net cash provided by (used in) investing activities		—			(510,872	)		116,344			(394,528	)
Financing activities:
Payment of HomeAway Convertible Notes		—			(400,443	)		—			(400,443	)
Purchases of treasury stock		(328,311	)		—			—			(328,311	)
Withholding taxes for stock option exercises		(1,282	)								(1,282	)
Transfers (to) from related parties		333,702			(83,370	)		(250,332	)		—
Other, net		(4,109	)		(3,052	)		(11,292	)		(18,453	)
Net cash used in financing activities		—			(486,865	)		(261,624	)		(748,489	)
Effect of exchange rate changes on cash and cash equivalents		—			21,609			15,536			37,145
Net increase in cash and cash equivalents		—			551,360			68,865			620,225
Cash and cash equivalents at beginning of the period		—			841,696			834,603			1,676,299
Cash and cash equivalents at end of the period	$	—		$	1,393,056		$	903,468		$	2,296,524

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six months ended June 30, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities	$	—		$	1,248,954		$	413,077		$	1,662,031
Investing activities:
Capital expenditures, including internal-use software and website development		—			(438,301	)		(30,426	)		(468,727	)
Purchases of investments		—			(458,318	)		(47,791	)		(506,109	)
Sales and maturities of investments		—			142,593			83,732			226,325
Acquisitions, net of cash acquired		—			(273,000	)		(54,362	)		(327,362	)
Proceeds from sale of business, net of cash divested and disposal costs		—			—			527,212			527,212
Other, net		—			29,460			10,435			39,895
Net cash provided by (used in) investing activities		—			(997,566	)		488,800			(508,766	)
Financing activities:
Proceeds from issuance of long-term debt, net of debt issuance costs		702,348			—			—			702,348
Purchases of treasury stock		(44,925	)		—			—			(44,925	)
Issuance of treasury stock		22,487			—			—			22,487
Withholding taxes for stock option exercises		(85,033	)		—			—			(85,033	)
Transfers (to) from related parties		(675,864	)		1,179,655			(503,791	)		—
Other, net		80,987			(1,290	)		11,466			91,163
Net cash provided by (used in) financing activities		—			1,178,365			(492,325	)		686,040
Effect of exchange rate changes on cash and cash equivalents		—			(33,037	)		(21,839	)		(54,876	)
Net increase in cash and cash equivalents		—			1,396,716			387,713			1,784,429
Cash and cash equivalents at beginning of period		—			943,976			458,724			1,402,700
Cash and cash equivalents at end of period	$	—		$	2,340,692		$	846,437		$	3,187,129