Expedia 2012 Annual Report Download - page 106
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Amortization expense was $32 million, $22 million and $23 million for the years ended December 31, 2012,
2011 and 2010.
The estimated future amortization expense related to intangible assets with definite lives as of December 31,
2012, assuming no subsequent impairment of the underlying assets, is as follows, in thousands:
2013 $ 37,172
2014 30,768
2015 18,155
2016 14,886
2017 14,795
2018 and thereafter 47,778
Total $163,554
NOTE 8 — Debt
The following table sets forth our outstanding debt:
December 31,
2012
December 31,
2011
(In thousands)
7.456% senior notes due 2018 $ 500,000 $ 500,000
5.95% senior notes due 2020, net of discount 749,345 749,281
Long-term debt $1,249,345 $1,249,281
We have excluded from the above table the $400 million 8.5% Notes, which were included in current
liabilities of discontinued operations as of December 31, 2011 in the consolidated balance sheets. For further
information, see Note 4 — Discontinued Operations.
Long-term Debt
Our $500 million in registered senior unsecured notes outstanding at December 31, 2012 are due in August
2018 and bear interest at 7.456% (the “7.456% Notes”). Interest is payable semi-annually in February and August
of each year. The 7.456% Notes are repayable in whole or in part on August 15, 2013, at the option of the holders
of such 7.456% Notes, at 100% of the principal amount plus accrued interest. As of December 31, 2012, the
7.456% Notes have been classified as long-term debt as we have the ability to draw on our long-term revolving
credit facility described below in the event the 7.456% Notes were redeemed at the option of the holders.
Separately from the holder option, at any time Expedia may redeem the 7.456% Notes at a redemption price of
100% of the principal plus accrued interest, plus a “make-whole” premium, in whole or in part.
Our $750 million in registered senior unsecured notes outstanding at December 31, 2012 are due in August
2020 and bear interest at 5.95% (the “5.95% Notes”). The 5.95% Notes were issued at 99.893% of par resulting
in a discount, which is being amortized over their life. Interest is payable semi-annually in February and August
of each year. We may redeem the 5.95% Notes at our option in whole or in part at any time or from time to time
at a specified “make-whole” premium.
The 7.456% and 5.95% Notes (collectively the “Notes”) are senior unsecured obligations guaranteed by
certain domestic Expedia subsidiaries and rank equally in right of payment with all of our existing and future
unsecured and unsubordinated obligations. For further information, see Note 20 — Guarantor and Non-Guarantor
Supplemental Financial Information. In addition, the Notes include covenants that limit our ability to (i) create
certain liens, (ii) enter into sale/leaseback transactions and (iii) merge or consolidate with or into another
entity. Accrued interest related to the Notes was $31 million as of December 31, 2012 and 2011.
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