Expedia 2013 Annual Report Download - page 129

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right of payment with all of our existing and future unsecured and unsubordinated obligations. The guarantees are
full, unconditional, joint and several with the exception of certain customary automatic subsidiary release
provisions. In this financial information, the Parent and Guarantor Subsidiaries account for investments in their
wholly-owned subsidiaries using the equity method.
In connection with the spin-off, TripAdvisor Holdings, LLC and TripAdvisor LLC, both post-spin-off
subsidiaries of TripAdvisor, were released from their guarantees of obligations under our existing debt facility
and instruments. The discontinued operations of TripAdvisor and its subsidiaries have been presented within the
following condensed consolidating financial statements within Guarantor Subsidiaries and Non-Guarantor
Subsidiaries consistent with the classification in prior periods.
CONDENSED CONSOLIDATING STATEMENT OF OPERATION
Year Ended December 31, 2013
Parent
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries Eliminations Consolidated
(In thousands)
Revenue $ — $3,849,746 $ 970,087 $ (48,574) $4,771,259
Costs and expenses:
Cost of revenue — 797,801 235,753 4,480 1,038,034
Selling and marketing — 1,492,370 756,767 (52,992) 2,196,145
Technology and content — 399,763 178,052 5 577,820
General and administrative — 216,551 160,594 (67) 377,078
Amortization of intangible assets — 3,042 68,689 — 71,731
Acquistion-related and other — — 66,472 — 66,472
Legal reserves, occupancy tax and other — 77,919 — — 77,919
Intercompany (income) expense, net — 731,867 (731,867) — —
Operating income — 130,433 235,627 — 366,060
Other income (expense):
Equity in pre-tax earnings of
consolidated subsidiaries 285,456 234,869 — (520,325) —
Other, net (83,006) 7,394 10,245 — (65,367)
Total other income (expense), net 202,450 242,263 10,245 (520,325) (65,367)
Income before income taxes 202,450 372,696 245,872 (520,325) 300,693
Provision for income taxes 30,400 (81,170) (33,565) — (84,335)
Net income 232,850 291,526 212,307 (520,325) 216,358
Net loss attributable to noncontrolling
interests — — 16,492 — 16,492
Net income attributable to Expedia, Inc. $232,850 $ 291,526 $ 228,799 $(520,325) $ 232,850
Comprehensive income attributable to
Expedia, Inc. $232,850 $ 290,857 $ 247,643 $(520,325) $ 251,025
F-47