Expedia 2006 Annual Report Download - page 100

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NOTE 19 — Guarantor and Non-Guarantor Supplemental Financial Information
Condensed consolidating financial information of Expedia, Inc. (the “Parent”), our subsidiaries that are
guarantors of the Notes (the “Guarantor Subsidiaries”), and our subsidiaries that are not guarantors of the
Notes (the “Non-Guarantor Subsidiaries”) is shown below. The Notes are guaranteed by certain of our wholly-
owned domestic subsidiaries and rank equally in right of payment with all of our existing and future unsecured
and unsubordinated obligations. The guarantees are full, unconditional, joint and several. In this financial
information, the Parent and Guarantor Subsidiaries account for investments in their wholly-owned subsidiaries
using the equity method.
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Year Ended December 31, 2006
Parent
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries Eliminations Consolidated
(In thousands)
Revenue........................... $ — $2,080,327 $423,608 $(266,349) $2,237,586
Cost of revenue ..................... — 428,656 77,831 (3,849) 502,638
Gross profit ........................ — 1,651,671 345,777 (262,500) 1,734,948
Operating expenses:
Selling and marketing ............... — 790,991 257,781 (262,577) 786,195
General and administrative ........... — 234,937 54,631 81 289,649
Technology and content ............. — 109,805 30,570 (4) 140,371
Amortization of intangible assets....... — 103,720 7,046 — 110,766
Impairment of intangible asset ........ — 47,000 — — 47,000
Amortization of non-cash distribution
and marketing ................... — 9,638 — — 9,638
Operating income (loss) ............... — 355,580 (4,251) — 351,329
Other income (expense):
Equity in pre-tax earnings (losses) of
consolidated subsidiaries ........... 252,745 (1,080) — (251,665) —
Other, net ........................ (9,129) 41,353 1,345 — 33,569
Total other income, net................ 243,616 40,273 1,345 (251,665) 33,569
Income (loss) before income taxes and
minority interest ................... 243,616 395,853 (2,906) (251,665) 384,898
Provision for income taxes ............. 1,318 (140,086) (683) — (139,451)
Minority interest in (income) loss of
consolidated subsidiaries, net ......... — (677) 164 — (513)
Net income (loss) ................... $244,934 $ 255,090 $ (3,425) $(251,665) $ 244,934
F-40
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)