Expedia 2013 Annual Report Download - page 105

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As of December 31, 2013 and 2012, our cash and cash equivalents consisted primarily of prime institutional
money market funds with maturities of 90 days or less, time deposits as well as bank account balances.
We invest in investment grade corporate debt securities, all of which are classified as available for sale. As
of December 31, 2013, we had $67 million of short-term and $133 million of long-term available for sale
investments and the amortized cost basis of the investments approximated their fair value with gross unrealized
gains and gross unrealized losses both of $1 million. As of December 31, 2012, we had $119 million of
short-term and $126 million of long-term available for sale investments and the amortized cost basis of the
investments approximated their fair value with gross unrealized gains of $2 million and gross unrealized losses of
less than $1 million.
We also hold time deposit investments with financial institutions. Time deposits with original maturities of
less than 90 days are classified as cash equivalents and those with remaining maturities of less than one year are
classified within short-term investments. Additionally, we have time deposits classified as restricted cash to
fulfill the requirement of an aviation authority of a certain foreign country to protect against the potential
non-delivery of travel services in that country. Of the total time deposit investments, $283 million and
$274 million as of December 31, 2013 and 2012 related to balances held by our majority-owned subsidiaries.
We use foreign currency forward contracts to economically hedge certain merchant revenue exposures and
in lieu of holding certain foreign currency cash for the purpose of economically hedging our foreign
currency-denominated operating liabilities. As of December 31, 2013, we were party to outstanding forward
contracts hedging our liability exposures with a total net notional value of $282 million. We had a net forward
asset of $2 million recorded in prepaid expenses and other current assets and a net forward liability of $3 million
as of December 31, 2013 and 2012 recorded in accrued expenses and other current liabilities. We recorded $47
million, $(21) million, and $(1) million in net gains (losses) from foreign currency forward contracts in 2013,
2012 and 2011.
NOTE 6 — Property and Equipment, Net
Our property and equipment consists of the following:
December 31,
2013 2012
(In thousands)
Capitalized software development $ 787,526 $ 648,477
Computer equipment 178,319 147,245
Furniture and other equipment 129,856 119,103
Leasehold improvements 121,084 107,376
1,216,785 1,022,201
Less: accumulated depreciation (781,477) (655,301)
Projects in progress 45,394 42,473
Property and equipment, net $ 480,702 $ 409,373
As of December 31, 2013 and 2012, our recorded capitalized software development costs, net of
accumulated amortization, were $325 million and $257 million. For the years ended December 31, 2013, 2012
and 2011, we recorded amortization of capitalized software development costs of $139 million, $100 million, and
$73 million, most of which is included in technology and content expenses.
F-23