Expedia 2011 Annual Report Download - page 117

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In connection with the spin-off, TripAdvisor Holdings, LLC and TripAdvisor LLC, both post-spin-off
subsidiaries of TripAdvisor, were released from their guarantees of obligations under our existing debt facility
and instruments. The discontinued operations of TripAdvisor and its subsidiaries have been presented within the
following condensed consolidating financial statements within Guarantor Subsidiaries and Non-Guarantor
Subsidiaries consistent with the classification in prior periods. In addition, in connection with the spin-off and the
Notice of Redemption of the 8.5% Notes as described in Note 4 — Discontinued Operations, such 8.5% Notes
and the related deposit for the redemption have been included within total current liabilities and total current
assets of the Parent as of December 31, 2011.
We revised the prior year financial information to conform to our current year presentation.
CONDENSED CONSOLIDATING STATEMENT OF OPERATION
Year Ended December 31, 2011
Parent
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries Eliminations Consolidated
(In thousands)
Revenue $ — $3,041,755 $ 424,018 $ (16,764) $3,449,009
Costs and expenses:
Cost of revenue — 648,219 111,868 1,185 761,272
Selling and marketing — 1,088,145 404,409 (17,913) 1,474,641
Technology and content — 297,859 83,388 (248) 380,999
General and administrative — 213,594 95,902 212 309,708
Amortization of intangible assets — 4,988 16,937 — 21,925
Legal reserves, occupancy tax and other — 20,855 — — 20,855
Intercompany (income) expense, net — 597,105 (597,105) — —
Operating income — 170,990 308,619 — 479,609
Other income (expense):
Equity in pre-tax earnings of
consolidated subsidiaries 382,403 244,429 — (626,832) —
Other, net (83,421) 44,288 (38,404) — (77,537)
Total other income (expense), net 298,982 288,717 (38,404) (626,832) (77,537)
Income before income taxes 298,982 459,707 270,215 (626,832) 402,072
Provision for income taxes 25,050 (73,165) (27,616) — (75,731)
Income from continuing operations 324,032 386,542 242,599 (626,832) 326,341
Discontinued operations, net of taxes 148,262 140,200 32,464 (172,664) 148,262
Net income 472,294 526,742 275,063 (799,496) 474,603
Net income attribuatable to noncontrolling
interests — — (2,309) — (2,309)
Net income attributable to Expedia, Inc. $472,294 $ 526,742 $ 272,754 $(799,496) $ 472,294
F-42