Expedia 2011 Annual Report Download - page 19

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• Possible preferences by local populations for local providers;
• Restrictions on, or adverse consequences related to, the withdrawal of non-U.S. investment and
earnings;
• Currency exchange restrictions;
• Restrictions on our ability to repatriate cash as well as restrictions on our ability to invest in our
operations in certain countries;
• Exchange rate fluctuations and the risks and costs inherent in hedging such exposures;
• Financial risk arising from transactions in multiple currencies;
• Slower adoption of the internet as an advertising, broadcast and commerce medium in those markets as
compared to the United States;
• Difficulties in managing staffing and operations due to distance, time zones, language and cultural
differences; and
• Uncertainty regarding liability for services and content, including uncertainty as a result of local laws
and lack of precedent.
We rely on the performance of highly skilled personnel and, if we are unable to retain or motivate key
personnel or hire, retain and motivate qualified personnel, our business would be harmed.
Our performance is largely dependent on the talents and efforts of highly skilled individuals. Our future
success depends on our continuing ability to identify, hire, develop, motivate and retain highly skilled personnel
for all areas of our organization. In particular, the contributions of Barry Diller, our Chairman and Senior
Executive, and Dara Khosrowshahi, our Chief Executive Officer, are critical to the overall management of the
company. Our future success will depend on the performance of our senior management and key employees.
Expedia cannot ensure that it will be able to retain the services of Mr. Diller, Mr. Khosrowshahi or any other
member of our senior management or key employees, the loss of whom could seriously harm our business.
Competition for well-qualified employees in certain aspects of our business, including software engineers,
developers, product management personnel, development personnel, and other technology professionals, also
remains intense.
Our continued ability to compete effectively depends on our ability to attract new employees and to retain
and motivate our existing employees. If we do not succeed in attracting well-qualified employees or retaining or
motivating existing employees, our business would be adversely affected. We do not maintain any key person
life insurance policies.
We have in the past and may again in the future, restructure portions of our global workforce to simplify and
streamline our organization, improve our cost structure and strengthen our overall businesses. These changes
could affect employee morale and productivity and be disruptive to our business and financial performance.
Our stock price is highly volatile.
The market price of our common stock is highly volatile and could continue to be subject to wide
fluctuations in response to factors such as the following, some of which are beyond our control:
• Quarterly variations in our operating results;
• Operating results that vary from the expectations of securities analysts and investors, including failure
to deliver returns on technology investments;
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