Expedia 2007 Annual Report Download - page 109

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CONDENSED COMBINING STATEMENT OF INCOME
Year Ended December 31, 2005
Parent
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries Eliminations Consolidated
(In thousands)
Revenue ........................... $ — $2,010,788 $320,889 $(212,222) $2,119,455
Cost of revenue ...................... — 429,230 53,645 (2,656) 480,219
Gross profit ......................... — 1,581,558 267,244 (209,566) 1,639,236
Operating expenses:
Selling and marketing ................ — 717,170 208,096 (209,642) 715,624
General and administrative . ........... — 211,202 46,099 88 257,389
Technology and content . . . ........... — 109,089 21,430 (12) 130,507
Amortization of intangible assets ....... — 116,357 9,710 — 126,067
Amortization of non-cash distribution and
marketing ....................... — 12,597 — — 12,597
Operating income (loss) ................ — 415,143 (18,091) — 397,052
Other income (expense):
Equity in pre-tax earnings (losses) of
consolidated subsidiaries . ........... 72,894 (21,239) — (51,655) —
Interest income from
IAC/InterActiveCorp ............... — 40,089 — — 40,089
Other, net ......................... (8,678) (15,572) 980 — (23,270)
Total other income, net................. 64,216 3,278 980 (51,655) 16,819
Income (loss) before income taxes and
minority interest .................... 64,216 418,421 (17,111) (51,655) 413,871
Provision for income taxes . . . ........... 763 (179,494) (7,246) — (185,977)
Minority interest in (income) loss of
consolidated subsidiaries, net .......... — (1,870) 2,706 — 836
Net income (loss) .................... $64,979 $ 237,057 $ (21,651) $ (51,655) $ 228,730
F-43
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)