Expedia 2006 Annual Report Download - page 102

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CONDENSED COMBINING STATEMENT OF INCOME
Year Ended December 31, 2004
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries Eliminations Consolidated
(In thousands)
Revenue ................................... $1,803,396 $197,111 $(157,494) $1,843,013
Cost of revenue .............................. 396,213 19,553 (283) 415,483
Gross profit ................................. 1,407,183 177,558 (157,211) 1,427,530
Operating expenses:
Selling and marketing ....................... 703,806 141,705 (157,214) 688,297
General and administrative .................... 195,006 32,448 — 227,454
Technology and content ...................... 111,260 18,224 3 129,487
Amortization of intangible assets ............... 119,036 6,055 — 125,091
Amortization of non-cash distribution and
marketing .............................. 16,728 — — 16,728
Operating income (loss) ........................ 261,347 (20,874) — 240,473
Other income (expense):
Equity in pre-tax earnings (losses) of consolidated
subsidiaries ............................. (21,972) — 21,972 —
Interest income from IAC/InterActiveCorp ........ 30,851 — — 30,851
Other, net ................................ (2,066) 285 — (1,781)
Total other income, net ........................ 6,813 285 21,972 29,070
Income (loss) before income taxes and minority
interest .................................. 268,160 (20,589) 21,972 269,543
Provision for income taxes...................... (104,371) (2,000) — (106,371)
Minority interest in (income) loss of consolidated
subsidiaries, net ............................ (316) 617 — 301
Net income (loss) ............................ $ 163,473 $ (21,972) $ 21,972 $ 163,473
F-42
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)