Expedia 2011 Annual Report Download - page 20

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• Changes in expectations as to our future financial performance, including financial estimates by
securities analysts and investors;
• Rating agency credit rating actions;
• Reaction to our earnings releases and conference calls, or presentations by executives at investor and
industry conferences;
• Changes in our capital structure;
• Changes in market valuations of other internet or online service companies;
• Changes in search industry dynamics, such as key word pricing and traffic, which may be more
pronounced without the offsetting benefits enjoyed by our former TripAdvisor businesses;
• Announcements of dividends or changes in the amount or frequency of our dividends;
• Announcements of technological innovations or new services by us or our competitors;
• Announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships,
joint ventures or capital commitments;
• Loss of a major travel supplier, such as an airline or hotel chain;
• Changes in the status of our intellectual property rights;
• Lack of success in the expansion of our business model geographically;
• Announcements by third parties of significant claims or proceedings against us or adverse
developments in pending proceedings;
• Additions or departures of key personnel;
• Rumors or public speculation about any of the above factors; and
• Price and volume fluctuations in the stock markets in general.
Volatility in our stock price could also make us less attractive to certain investors, and/or invite speculative
trading in our common stock or debt instruments.
We may experience constraints in our liquidity and may be unable to access capital when necessary or
desirable, either of which could harm our financial position.
We are accumulating a greater portion of our cash flows in foreign jurisdictions than previously and any
repatriation of such funds for use in the United States, including for corporate purposes such as acquisitions,
stock repurchases, dividends or debt refinancings, would likely result in additional U.S. income tax expense. In
addition, the spin-off of TripAdvisor has reduced our overall ability to generate annual cash flow in the future.
Moreover, we have experienced, and may experience in the future, declines in seasonal liquidity and capital
provided by our merchant hotel business, which has historically provided a meaningful portion of our operating
cash flow and will likely provide a more significant portion of our operating cash flow following the spin-off of
TripAdvisor. The extent of such impact is dependent on several factors, including the rate of growth of our
merchant hotel business and the relative growth of businesses which consume rather than generate working
capital, such as our agency hotel, advertising and managed corporate travel businesses and payment terms with
suppliers. We also continue to evaluate the use of the agency model versus the merchant model in each of our
markets and any change in our relative use of the agency model could have a materially adverse impact on our
working capital and liquidity position.
The availability of funds depends in significant measure on capital markets and liquidity factors over which
we exert no control. In light of periodic uncertainty in the capital and credit markets, we can provide no
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