Expedia 2011 Annual Report Download - page 78

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Consolidated Financial Statements
EXPEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended December 31,
2011 2010 2009
(In thousands, except for per share data)
Revenue $3,449,009 $3,033,645 $2,743,051
Costs and expenses:
Cost of revenue (1) 761,272 685,487 602,682
Selling and marketing (including $211,018, $171,110 and
$139,714 with a related party)(1) 1,474,641 1,234,781 1,061,097
Technology and content (1) 380,999 308,780 282,634
General and administrative (1) 309,708 258,604 272,853
Amortization of intangible assets 21,925 22,514 23,875
Legal reserves, occupancy tax and other 20,855 22,692 67,999
Restructuring charges — — 34,168
Operating income 479,609 500,787 397,743
Other income (expense):
Interest income 20,218 7,052 6,189
Interest expense (90,718) (66,428) (49,452)
Other, net (7,037) (15,572) (34,704)
Total other expense, net (77,537) (74,948) (77,967)
Income from continuing operations before income taxes 402,072 425,839 319,776
Provision for income taxes (75,731) (120,342) (101,502)
Income from continuing operations 326,341 305,497 218,274
Discontinued operations, net of taxes 148,262 120,063 85,349
Net income 474,603 425,560 303,623
Net income attributable to noncontrolling interests (2,309) (4,060) (4,097)
Net income attributable to Expedia, Inc. $ 472,294 $ 421,500 $ 299,526
Amounts attributable to Expedia, Inc.:
Income from continuing operations $ 324,146 $ 301,615 $ 213,965
Discontinued operations, net of taxes 148,148 119,885 85,561
Net income $ 472,294 $ 421,500 $ 299,526
Earnings per share from continuing operations attributable to
Expedia, Inc. available to common stockholders:
Basic $ 2.39 $ 2.14 $ 1.48
Diluted 2.34 2.09 1.46
Earnings per share attributable to Expedia, Inc. available to
common stockholders:
Basic $ 3.48 $ 2.98 $ 2.08
Diluted 3.41 2.93 2.05
Shares used in computing earnings per share:
Basic 135,888 141,233 144,107
Diluted 138,702 144,014 146,071
Dividends declared per common share $ 0.56 $ 0.56 $ —
(1) Includes stock-based compensation as follows:
Cost of revenue $ 2,971 $ 2,401 $ 2,285
Selling and marketing 13,085 11,766 10,555
Technology and content 13,505 11,665 13,424
General and administrative 34,286 26,675 29,492
See notes to consolidated financial statements.
F-3