Expedia 2013 Annual Report Download - page 65

our networks, and is principally comprised of personnel and overhead, depreciation and amortization of
technology assets including hardware, and purchased and internally developed software, and other costs
including licensing and maintenance expense and stock-based compensation.
The year-over-year increase in technology and content expense of $93 million in 2013 and $104 million in
2012 was primarily due to higher personnel costs, net of capitalized salary costs, of $45 million and $63 million
for additional headcount to support key technology project for our corporate technology function, Brand Expedia
and supply organization as well as increased depreciation and amortization of technology assets of $42 million
and $32 million.
General and Administrative
Year ended December 31, % Change
2013 2012 2011 2013 vs 2012 2012 vs 2011
($ in millions)
Personnel and overhead $241 $219 $183 10% 20%
Professional fees and other 136 126 127 8% 0%
Total general and administrative $377 $345 $310 9% 12%
% of revenue 7.9% 8.6% 9.0%
General and administrative expense consists primarily of personnel-related costs, including our executive
leadership, finance, legal and human resource functions as well as fees for external professional services
including legal, tax and accounting, and other costs including stock-based compensation.
In 2013, the $32 million increase in general and administrative expense was primarily due to higher
personnel and overhead expenses of $22 million, of which additional headcount drove the majority of the total
increase. In addition, professional fees and other increased $10 million in 2013 driven in large part by higher
professional fees. Acquisitions added approximately 3% to the year-on-year general and administrative expense
growth. In 2012, the $35 million increase in general and administrative expense was primarily due to higher
personnel and overhead expenses of $36 million, including bonus accruals and additional headcount, and higher
legal fees of $5 million, partially offset by $9 million of lower consulting fees.
Amortization of Intangible Assets
Year ended December 31, % Change
2013 2012 2011 2013 vs 2012 2012 vs 2011
($ in millions)
Amortization of intangible assets $ 72 $ 32 $ 22 126% 45%
% of revenue 1.5% 0.8% 0.6%
In 2013, amortization increased compared to 2012 due to amortization related to new business acquisitions,
including trivago in March 2013. In addition, amortization included an approximate $3 million impairment loss
related to an indefinite-lived trade name in our Leisure segment. In 2012, amortization increased compared to
2011 due primarily to amortization related to the VIA Travel acquisition.
Legal Reserves, Occupancy Tax and Other
Year ended December 31, % Change
2013 2012 2011 2013 vs 2012 2012 vs 2011
($ in millions)
Legal reserves, occupancy tax and other $78 $117 $21 (33%) 461%
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