Expedia 2008 Annual Report Download - page 75

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Consolidated Financial Statements
EXPEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
2008 2007 2006
Year Ended December 31,
(In thousands, except per share data)
Revenue ............................................... $2,937,013 $2,665,332 $2,237,586
Cost of revenue(1) ........................................ 634,744 562,401 502,638
Gross profit ............................................. 2,302,269 2,102,931 1,734,948
Operating expenses:
Selling and marketing(1) ................................. 1,101,403 992,560 786,195
General and administrative(1) .............................. 355,431 321,250 289,649
Technology and content(1) ................................ 208,952 182,483 140,371
Amortization of intangible assets ........................... 69,436 77,569 110,766
Impairment of goodwill .................................. 2,762,100 — —
Impairment of intangible and other long-lived assets ............. 233,900 — 47,000
Amortization of non-cash distribution and marketing ............. — — 9,638
Operating income (loss) .................................... (2,428,953) 529,069 351,329
Other income (expense):
Interest income ........................................ 30,411 39,418 32,065
Interest expense ........................................ (71,984) (52,896) (17,266)
Other, net ............................................ (44,178) (18,607) 18,770
Total other income (expense), net ............................. (85,751) (32,085) 33,569
Income (loss) before income taxes and minority interest ............ (2,514,704) 496,984 384,898
Provision for income taxes .................................. (5,966) (203,114) (139,451)
Minority interest in (income) loss of consolidated subsidiaries, net .... 2,907 1,994 (513)
Net income (loss) ........................................ $(2,517,763) $ 295,864 $ 244,934
Net income (loss) per share available to common stockholders:
Basic ................................................ $ (8.80) $ 1.00 $ 0.72
Diluted .............................................. (8.63) 0.94 0.70
Shares used in computing income (loss) per share:
Basic ................................................ 286,167 296,640 338,047
Diluted .............................................. 291,830 314,233 352,181
(1) Includes stock-based compensation as follows:
Cost of revenue ........................................ $ 2,253 $ 2,893 $ 8,399
Selling and marketing ................................... 10,324 12,472 15,893
General and administrative ................................ 34,335 31,851 36,877
Technology and content .................................. 14,379 15,633 19,116
Total stock-based compensation .......................... $ 61,291 $ 62,849 $ 80,285
See notes to consolidated financial statements.
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