Expedia 2009 Annual Report Download - page 94

Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)
Amortization expense was $38 million, $69 million and $78 million for the years ended December 31, 2009,
2008 and 2007. The estimated future amortization expense related to intangible assets with definite lives as of
December 31, 2009, assuming no subsequent impairment of the underlying assets, is as follows, in thousands:
2010 .................................................................... $ 32,843
2011 .................................................................... 24,723
2012 .................................................................... 19,180
2013 .................................................................... 13,686
2014 .................................................................... 9,207
2015 and thereafter ......................................................... 33,364
Total .................................................................. $133,003
NOTE 6 — Debt
The following table sets forth our outstanding debt:
December 31,
2009
December 31,
2008
(In thousands)
8.5% senior notes due 2016, net of discount ....................... $395,086 $ 394,548
7.456% senior notes due 2018 .................................. 500,000 500,000
Long-term debt ............................................ 895,086 894,548
Credit facility ............................................... — 650,000
Total long-term indebtedness ................................. $895,086 $1,544,548
Long-term Debt
Our $400 million of senior unsecured notes outstanding at December 31, 2009 are due in July 2016 and bear
interest at 8.5% (the “8.5% Notes”). The 8.5% Notes were issued at 98.572% of par resulting in a discount,
which is being amortized over their life. Interest is payable semi-annually in January and July of each year. The
8.5% Notes include covenants that limit our ability to (i) incur additional indebtedness, (ii) pay dividends or
make restricted payments, (iii) dispose of assets, (iv) create or incur liens, (v) enter into sale/leaseback
transactions and (vi) merge or consolidate with or into another entity. Certain of these covenants in the 8.5%
Notes, including the covenants limiting our ability to incur additional indebtedness, pay dividends or make
restricted payments and dispose of assets, will be suspended during any time that the 8.5% Notes have an
investment grade rating from both Standard and Poor’s and Moody’s and no default exists under the 8.5% Note
indenture. The 8.5% Notes are repayable in whole or in part upon the occurrence of a change of control, at the
option of the holders, at a purchase price in cash equal to 101% of the principal plus accrued interest. Prior to
July 1, 2011, in the event of a qualified equity offering, we may redeem up to 35% of the 8.5% Notes at a
redemption price of 108.5% of the principal plus accrued interest. Additionally, we may redeem the 8.5% Notes
prior to July 1, 2012 in whole or in part at a redemption price of 100% of the principal plus accrued interest, plus
a “make-whole” premium. On or after July 1, 2012, we may redeem the 8.5% Notes in whole or in part at
specified prices ranging from 104.250% to 100% of the principal plus accrued interest.
Our $500 million in registered senior unsecured notes outstanding at December 31, 2009 are due in August
2018 and bear interest at 7.456% (the “7.456% Notes”). Interest is payable semi-annually in February and August
of each year. The 7.456% Notes include covenants that limit our ability (i) to enter into sale/leaseback
transactions, (ii) to create or incur liens and (iii) to merge or consolidate with or into another entity. The
7.456% Notes are repayable in whole or in part on August 15, 2013, at the option of the holders of such
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