Expedia 2013 Annual Report Download - page 34

• Enter into certain asset sale transactions, including partial or full spin-off transactions;
• Enter into secured financing arrangements;
• Enter into sale and leaseback transactions; and
• Enter into unrelated businesses.
These covenants may limit our ability to effectively operate our businesses.
In addition, our credit facility requires that we meet certain financial tests, including an interest coverage
test and a leverage ratio test.
Any failure to comply with the restrictions of our credit facility or any agreement governing our other
indebtedness may result in an event of default under those agreements. Such default may allow the creditors to
accelerate the related debt, which acceleration may trigger cross-acceleration or cross-default provisions in other
debt. In addition, lenders may be able to terminate any commitments they had made to supply us with further
funds (including periodic rollovers of existing borrowings).
We cannot be sure that our intellectual property is protected from copying or use by others, including
potential competitors.
Our websites rely on content, brands and technology, much of which is proprietary. We protect our
intellectual property by relying on a combination of trademarks, copyrights, trade secret laws, patents and
confidentiality agreements. In connection with our license agreements with third parties, we seek to control
access to, and the use and distribution of, our proprietary information. Even with these precautions, it may be
possible for another party to copy or otherwise obtain and use our intellectual property without our authorization
or to develop similar intellectual property independently. Effective trademark, copyright, patent and trade secret
protection may not be available in every jurisdiction in which our services are made available, and policing
unauthorized use of our intellectual property is difficult and expensive. We cannot be sure that the steps we have
taken will prevent misappropriation or infringement of intellectual property. Any misappropriation or violation of
our rights could have a material adverse effect on our business. Furthermore, we may need to go to court or other
tribunals to enforce our intellectual property rights, to protect our trade secrets or to determine the validity and
scope of the proprietary rights of others. These proceedings might result in substantial costs and diversion of
resources and management attention.
We currently license from third parties some of the technologies, content and brands incorporated into our
websites. As we continue to introduce new services that incorporate new technologies, content and brands, we
may be required to license additional technology, content or brands. We cannot be sure that such technology,
content and brand licenses will be available on commercially reasonable terms, if at all.
Part I. Item 1B. Unresolved Staff Comments
None.
Part I. Item 2. Properties
We lease approximately 1.8 million square feet of office space worldwide, pursuant to leases with
expiration dates through May 2023.
We lease approximately 477,000 square feet for our headquarters in Bellevue, Washington, pursuant to
leases with expiration dates through October 2018. We also lease approximately 412,000 square feet of office
space for our domestic operations in various cities and locations in Arizona, California, Colorado, Florida,
Hawaii, Idaho, Illinois, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New York, Texas and
Washington DC, pursuant to leases with expiration dates through September 2018.
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