Expedia 2010 Annual Report Download - page 102

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NOTE 14 — Other Income (Expense)
Other, net
The following table presents the components of other, net:
For the Year Ended December 31,
2010 2009 2008
(In thousands)
Foreign exchange rate losses, net .......................... $(17,727) $(29,900) $(47,129)
Noncontrolling investment basis adjustment ................. — (5,158) —
Other(1) ............................................. 511 (306) 2,951
Total ............................................ $(17,216) $(35,364) $(44,178)
(1) Other primarily includes equity gains (losses) on unconsolidated affiliates and other miscellaneous gains
and losses as well as gains (losses) on derivatives instruments assumed at Spin-Off related to our Ask Jeeves
note liability during 2008.
In 2009, in conjunction with the acquisition of additional interest in one of our equity method investments,
we remeasured our previously held equity interest to fair value and recognized the resulting loss of $5 million.
In 2008, in connection with the closing of an acquisition and the related holding of euros to economically
hedge the purchase price, we recognized a net loss of $21 million, included in foreign exchange rate losses, net.
NOTE 15 — Commitments and Contingencies
Letters of Credit, Purchase Obligations and Guarantees
We have commitments and obligations that include purchase obligations, guarantees and LOCs, which
could potentially require our payment in the event of demands by third parties or contingent events. The
following table presents these commitments and obligations as of December 31, 2010:
Total
By Period
Less than
1 year 1 to 3 years 3 to 5 years
More than
5 years
(In thousands)
Purchase obligations .............. $ 52,999 $38,021 $14,978 $— $—
Guarantees ...................... 36,829 33,301 3,528 — —
Letters of credit .................. 26,736 19,046 7,690 — —
$116,564 $90,368 $26,196 $— $—
Our purchase obligations represent the minimum obligations we have under agreements with certain of our
vendors. These minimum obligations are less than our projected use for those periods. Payments may be more
than the minimum obligations based on actual use.
We have guarantees primarily related to certain foreign countries aviation authorities for the potential
non-delivery, by us, of packaged travel sold in those countries. The authorities also require that a portion of the
total amount of packaged travel sold be bonded. Our guarantees also include certain surety bonds related to
various company performance obligations.
Our LOCs consist of stand-by LOCs, underwritten by a group of lenders, which we primarily issue for
certain regulatory purposes as well as to certain hotel properties to secure our payment for hotel room
transactions. The contractual expiration dates of these LOCs are shown in the table above. There were no claims
made against any stand-by LOCs during the years ended December 31, 2010, 2009 and 2008.
F-31