Expedia 2006 Annual Report Download - page 98

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The following table presents property and equipment, net by geographic area, the United States and all
other countries, as of December 31, 2006 and 2005:
2006 2005
As of December 31,
(In thousands)
Property and equipment, net
United States ............................................ $120,483 $77,390
All other countries ........................................ 16,661 13,594
$137,144 $90,984
NOTE 17 — Valuation and Qualifying Accounts
We accrue the cost associated with purchases made on our website related to the use of fraudulent credit
cards “charged-back” due to payment disputes and cancellation fees. The following table presents the changes
in the valuation and qualifying accounts.
Description
Balance of
Beginning of
Period
Charges to
Earnings
Charges to
Other
Accounts Deductions
Balance at
End of
Period
(In thousands)
2006
Allowance for doubtful accounts ....... $3,914 $2,747 $200 $(1,987) $ 4,874
Credit card charge-backs ............. 3,020 785 — (170) 3,635
Cancellation fees................... 2,105 78 721 (493) 2,411
Total .......................... $9,039 $3,610 $921 $(2,650) $10,920
2005
Allowance for doubtful accounts ....... $2,338 $1,753 $ — $ (177) $ 3,914
Credit card charge-backs ............. 3,010 596 — (586) 3,020
Cancellation fees................... 2,120 — — (15) 2,105
Total .......................... $7,468 $2,349 $ — $ (778) $ 9,039
2004
Allowance for doubtful accounts ....... $3,231 $ (510) $100 $ (483) $ 2,338
Credit card charge-backs ............. 1,818 1,680 — (488) 3,010
Cancellation fees................... — 2,120 — — 2,120
$5,049 $3,290 $100 $ (971) $ 7,468
F-38
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)