Expedia 2013 Annual Report Download - page 119
Download and view the complete annual report
Please find page 119 of the 2013 Expedia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
 |
 |
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, 2013:
By Period
Total
Less than
1 year 1 to 3 years 3 to 5 years
More than
5 years
(In thousands)
Purchase obligations $103,055 $ 91,313 $11,742 $ — $—
Guarantees 128,973 116,660 12,313 — —
Letters of credit 25,958 24,002 96 1,759 101
$257,986 $231,975 $24,151 $1,759 $101
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 which consist primarily of bonds relating to tax assessments that we are contesting as
well as bonds required by 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, 2013, 2012 and 2011.
In addition, our redeemable noncontrolling interest in trivago contains certain put/call rights whereby we may
acquire and the minority shareholders may sell to us the minority shares of the company. See Note 3 — Acquisitions
for further information.
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 2023. For the years ended
December 31, 2013, 2012 and 2011, we recorded rental expense of $84 million, $70 million, and $67 million.
The following table presents our estimated future minimum rental payments under operating leases with
noncancelable lease terms that expire after December 31, 2013, in thousands:
Year ending December 31,
2014 $ 58,499
2015 51,157
2016 43,295
2017 39,548
2018 31,632
2019 and thereafter 36,554
$260,685
F-37