Expedia 2007 Annual Report Download - page 108

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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-42
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)