Guarantor and Non-Guarantor Supplemental Financial Information (Tables)

6 Months Ended

Jun. 30, 2017

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Six months ended June 30, 2017



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	3,646,926		$	1,345,091		$	(217,229	)	$	4,774,788
Costs and expenses:
Cost of revenue	—			670,135			198,433			(7,874		)	860,694
Selling and marketing	—			1,907,209			1,015,635			(209,377		)	2,713,467
Technology and content	—			486,360			178,218			(8		)	664,570
General and administrative	—			220,208			116,867			30			337,105
Amortization of intangible assets	—			91,803			41,152			—			132,955
Legal reserves, occupancy tax and other	—			24,455			—			—			24,455
Restructuring and related reorganization charges	—			3,413			8,194			—			11,607
Intercompany (income) expense, net	—			386,262			(386,262		)	—			—
Operating income (loss)	—			(142,919		)	172,854			—			29,935
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries	23,743			168,710			—			(192,453		)	—
Other, net	(84,339		)	(45,655		)	25,486			—			(104,508		)
Total other income (expense), net	(60,596		)	123,055			25,486			(192,453		)	(104,508		)
Income (loss) before income taxes	(60,596		)	(19,864		)	198,340			(192,453		)	(74,573		)
Provision for income taxes	31,163			52,209			(39,668		)	—			43,704
Net income (loss)	(29,433		)	32,345			158,672			(192,453		)	(30,869		)
Net loss attributable to non-controlling interests	—			—			1,436			—			1,436
Net income (loss) attributable to Expedia, Inc.	$	(29,433	)	$	32,345		$	160,108		$	(192,453	)	$	(29,433	)
Comprehensive income attributable to Expedia, Inc.	$	62,626		$	162,108		$	289,866		$	(451,974	)	$	62,626

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 (loss), net	(107,206		)	62,301			7,855			(69,395		)	(106,445		)
Income (loss) before income taxes	(107,206		)	(81,027		)	79,547			(69,395		)	(178,081		)
Provision for income taxes	30,266			61,199			(15,909		)	—			75,556
Net income (loss)	(76,940		)	(19,828		)	63,638			(69,395		)	(102,525		)
Net loss attributable to non-controlling interests	—			—			25,585			—			25,585
Net income (loss) attributable to Expedia, Inc.	$	(76,940	)	$	(19,828	)	$	89,223		$	(69,395	)	$	(76,940	)
Comprehensive income (loss) attributable to Expedia, Inc.	$	(91,612	)	$	(26,808	)	$	56,004		$	(29,196	)	$	(91,612	)

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2017



	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	324,922	$	4,517,498	$	2,448,162	$	(1,264,021	)	$	6,026,561
Investment in subsidiaries	9,725,816		3,954,877		—		(13,680,693		)	—
Intangible assets, net	—		1,825,877		564,588		—			2,390,465
Goodwill	—		6,368,818		1,787,898		—			8,156,716
Other assets, net	4,107		1,645,416		412,798		(12,815		)	2,049,506
TOTAL ASSETS	$	10,054,845	$	18,312,486	$	5,213,446	$	(14,957,529	)	$	18,623,248
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	1,011,783	$	8,012,886	$	983,854	$	(1,264,021	)	$	8,744,502
Long-term debt	3,220,946		—		—		—			3,220,946
Other liabilities	—		616,524		231,975		(12,815		)	835,684
Stockholders’ equity	5,822,116		9,683,076		3,997,617		(13,680,693		)	5,822,116
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	10,054,845	$	18,312,486	$	5,213,446	$	(14,957,529	)	$	18,623,248

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2016



	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Total current assets	$	293,759	$	2,535,711	$	1,829,191	$	(1,208,410	)	$	3,450,251
Investment in subsidiaries	9,536,273		3,410,687		—		(12,946,960		)	—
Intangible assets, net	—		1,921,519		525,133		—			2,446,652
Goodwill	—		6,392,479		1,549,544		—			7,942,023
Other assets, net	4,107		1,608,218		331,818		(5,523		)	1,938,620
TOTAL ASSETS	$	9,834,139	$	15,868,614	$	4,235,686	$	(14,160,893	)	$	15,777,546
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	981,700	$	5,733,755	$	620,153	$	(1,208,410	)	$	6,127,198
Long-term debt	3,159,336		—		—		—			3,159,336
Other liabilities	—		629,634		173,798		(5,523		)	797,909
Stockholders’ equity	5,693,103		9,505,225		3,441,735		(12,946,960		)	5,693,103
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	9,834,139	$	15,868,614	$	4,235,686	$	(14,160,893	)	$	15,777,546

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six Months Ended June 30, 2017



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In thousands)
Operating activities:
Net cash provided by operating activities	$	—		$	2,089,301		$	276,339		$	2,365,640
Investing activities:
Capital expenditures, including internal-use software and website development	—			(258,561		)	(98,331		)	(356,892		)
Purchases of investments	—			(825,900		)	(165,471		)	(991,371		)
Sales and maturities of investments	—			149,762			25,557			175,319
Acquisitions, net of cash acquired	—			(138,215		)	—			(138,215		)
Other, net	—			6,233			985			7,218
Net cash used in investing activities	—			(1,066,681		)	(237,260		)	(1,303,941		)
Financing activities:
Purchases of treasury stock	(114,327		)	—			—			(114,327		)
Transfers (to) from related parties	67,431			(197,265		)	129,834			—
Other, net	46,896			(7,561		)	(5,646		)	33,689
Net provided by (cash used) in financing activities	—			(204,826		)	124,188			(80,638		)
Effect of exchange rate changes on cash and cash equivalents	—			52,748			44,203			96,951
Net increase in cash and cash equivalents	—			870,542			207,470			1,078,012
Cash and cash equivalents at beginning of the period	—			425,471			1,371,340			1,796,811
Cash and cash equivalents at end of the period	$	—		$	1,296,013		$	1,578,810		$	2,874,823

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		)
Transfers (to) from related parties	333,702			(83,370		)	(250,332		)	—
Other, net	(5,391		)	(3,052		)	(11,292		)	(19,735		)
Net cash provided by 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 period	—			841,696			834,603			1,676,299
Cash and cash equivalents at end of period	$	—		$	1,393,056		$	903,468		$	2,296,524