Expedia 2012 Annual Report Download - page 118

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NOTE 14 — Other Income (Expense)
Other, net
The following table presents the components of other, net:
For the Year Ended December 31,
2012 2011 2010
(In thousands)
Foreign exchange rate losses, net $(16,179) $(8,465) $(16,159)
Equity gains (losses) on unconsolidated affiliates (5,163) 1,933 391
Other 1,067 (505) 196
Total $(20,275) $(7,037) $(15,572)
NOTE 15 — Commitments and Contingencies
Letters of Credit, Purchase Obligations and Guarantees
We have commitments and obligations that include purchase obligations, guarantees and LOCs, which
could potentially require our payment in the event of demands by third parties or contingent events. The
following table presents these commitments and obligations as of December 31, 2012:
By Period
Total
Less than
1 year 1 to 3 years 3 to 5 years
More than
5 years
(In thousands)
Purchase obligations $108,977 $ 72,685 $35,855 $437 $ —
Guarantees 84,667 83,879 788 — —
Letters of credit 31,587 25,991 3,602 44 1,950
$225,231 $182,555 $40,245 $481 $1,950
Our purchase obligations represent the minimum obligations we have under agreements with certain of our
vendors. These minimum obligations are less than our projected use for those periods. Payments may be more
than the minimum obligations based on actual use.
We have guarantees primarily related to certain foreign countries aviation authorities for the potential
non-delivery, by us, of packaged travel sold in those countries. The authorities also require that a portion of the
total amount of packaged travel sold be bonded. Our guarantees also include certain surety bonds related to
various company performance obligations.
Our LOCs consist of stand-by LOCs, underwritten by a group of lenders, which we primarily issue for
certain regulatory purposes as well as to certain hotel properties to secure our payment for hotel room
transactions. The contractual expiration dates of these LOCs are shown in the table above. There were no claims
made against any stand-by LOCs during the years ended December 31, 2012, 2011 and 2010.
Lease Commitments
We have contractual obligations in the form of operating leases for office space and related office
equipment for which we record the related expense on a monthly basis. Certain leases contain periodic rent
escalation adjustments and renewal options. Rent expense related to such leases is recorded on a straight-line
basis. Operating lease obligations expire at various dates with the latest maturity in 2021. For the years ended
December 31, 2012, 2011 and 2010, we recorded rental expense of $70 million, $67 million and $48 million.
F-36