Expedia 2007 Annual Report Download - page 107

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NOTE 19 — Guarantor and Non-Guarantor Supplemental Financial Information
Condensed consolidating financial information of Expedia, Inc. (the “Parent”), our subsidiaries that are
guarantors of the Notes (the “Guarantor Subsidiaries”), and our subsidiaries that are not guarantors of the
Notes (the “Non-Guarantor Subsidiaries”) is shown below. The Notes are guaranteed by certain of our wholly-
owned domestic subsidiaries and rank equally in right of payment with all of our existing and future unsecured
and unsubordinated obligations. The guarantees are full, unconditional, joint and several. In this financial
information, the Parent and Guarantor Subsidiaries account for investments in their wholly-owned subsidiaries
using the equity method.
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Year Ended December 31, 2007
Parent
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries Eliminations Consolidated
(In thousands)
Revenue........................... $ — $2,439,218 $598,594 $(372,480) $2,665,332
Cost of revenue ..................... — 471,845 95,449 (4,893) 562,401
Gross profit ........................ — 1,967,373 503,145 (367,587) 2,102,931
Operating expenses:
Selling and marketing ............... — 996,114 364,213 (367,767) 992,560
General and administrative ........... — 242,818 78,232 200 321,250
Technology and content ............. — 142,141 40,362 (20) 182,483
Amortization of intangible assets....... — 69,828 7,741 — 77,569
Operating income .................... — 516,472 12,597 — 529,069
Other income (expense):
Equity in pre-tax earnings of
consolidated subsidiaries ........... 349,305 8,230 — (357,535) —
Other, net ........................ (58,874) 27,242 (462) 9 (32,085)
Total other income (expense), net ........ 290,431 35,472 (462) (357,526) (32,085)
Income before income taxes and minority
interest .......................... 290,431 551,944 12,135 (357,526) 496,984
Provision for income taxes ............. 5,433 (199,369) (9,178) — (203,114)
Minority interest in loss of consolidated
subsidiaries, net ................... — — 1,994 — 1,994
Net income ........................ $295,864 $ 352,575 $ 4,951 $(357,526) $ 295,864
F-41
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)