Expedia 2007 Annual Report Download - page 69

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Consolidated Financial Statements
EXPEDIA, INC.
CONSOLIDATED STATEMENTS OF INCOME
2007 2006 2005
Year Ended December 31,
(In thousands, except per share data)
Revenue ............................................. $2,665,332 $2,237,586 $2,119,455
Cost of revenue(1) ..................................... 562,401 502,638 480,219
Gross profit .......................................... 2,102,931 1,734,948 1,639,236
Operating expenses:
Selling and marketing(1) ............................... 992,560 786,195 715,624
General and administrative(1) ........................... 321,250 289,649 257,389
Technology and content(1) ............................. 182,483 140,371 130,507
Amortization of intangible assets ......................... 77,569 110,766 126,067
Impairment of intangible asset........................... — 47,000 —
Amortization of non-cash distribution and marketing .......... — 9,638 12,597
Operating income ...................................... 529,069 351,329 397,052
Other income (expense):
Other interest income ................................. 39,418 32,065 10,690
Interest income from IAC/InterActiveCorp.................. — — 40,089
Interest expense ..................................... (52,896) (17,266) (2,106)
Write-off of long-term investment ........................ — — (23,426)
Other, net .......................................... (18,607) 18,770 (8,428)
Total other income (expense), net .......................... (32,085) 33,569 16,819
Income before income taxes and minority interest .............. 496,984 384,898 413,871
Provision for income taxes ............................... (203,114) (139,451) (185,977)
Minority interest in (income) loss of consolidated subsidiaries, net . . 1,994 (513) 836
Net income .......................................... $ 295,864 $ 244,934 $ 228,730
Net earnings per share available to common stockholders:
Basic ............................................. $ 1.00 $ 0.72 $ 0.68
Diluted ............................................ 0.94 0.70 0.65
Shares used in computing earnings per share:
Basic ............................................. 296,640 338,047 336,819
Diluted ............................................ 314,233 352,181 349,530
(1) Includes stock-based compensation as follows:
Cost of revenue ..................................... $ 2,893 $ 8,399 $ 9,503
Selling and marketing ................................. 12,472 15,893 18,121
General and administrative ............................. 31,851 36,877 45,874
Technology and content ............................... 15,633 19,116 18,227
Total stock-based compensation ........................ $ 62,849 $ 80,285 $ 91,725
See notes to consolidated financial statements.
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