Expedia 2011 Annual Report Download - page 95

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approximately $38 million (or $25 million net of tax), which included an early redemption premium of $33
million and the write-off of $5 million of unamortized debt issuance and discount costs. This loss will be
recorded within discontinued operations in the first quarter of 2012, as that is the period in which the bonds were
legally extinguished. The debt extinguishment was completed, in part, using the approximately $400 million of
cash distributed to us from TripAdvisor in connection with the spin-off.
As a result of the above, at December 31, 2011, we had a current asset of discontinued operations of $456
million primarily related to the deposit for the redemption price of the 8.5% Notes as well as a current liability of
discontinued operations of $420 million for the 8.5% Notes, accrued interest expense related to the 8.5% Notes
and accrued spin-off costs. As of December 31, 2010, the 8.5% Notes were included within noncurrent liabilities
of discontinued operations and the related interest expense and amortization of debt issuance and discount costs
of $35 million for the years ended December 31, 2011, 2010 and 2009 were included within discontinued
operations within our consolidated statement of operations.
NOTE 5 — Fair Value Measurements
Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2011 are
classified using the fair value hierarchy in the table below:
Total Level 1 Level 2
(In thousands)
Assets
Cash equivalents:
Money market funds $ 310,075 $310,075 $ —
Derivatives:
Foreign currency forward contracts 1,043 — 1,043
Investments:
Time deposits 592,162 — 592,162
Corporate debt securities 268,664 — 268,664
Total assets $1,171,944 $310,075 $861,869
Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 are
classified using the fair value hierarchy in the table below:
Total Level 1 Level 2
(In thousands)
Assets
Cash equivalents:
Money market funds $319,169 $319,169 $ —
Investments:
Time deposits 414,018 — 414,018
Corporate debt securities 243,963 — 243,963
Total assets $977,150 $319,169 $657,981
Liabilities
Foreign currency forward contracts $ 1,431 $ — $ 1,431
F-20