Expedia 2012 Annual Report Download - page 127
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facility and instruments are guaranteed by certain of our wholly-owned domestic subsidiaries and rank equally in
right of payment with all of our existing and future unsecured and unsubordinated obligations. The guarantees are
full, unconditional, joint and several with the exception of certain customary automatic subsidiary release
provisions. In this financial information, the Parent and Guarantor Subsidiaries account for investments in their
wholly-owned subsidiaries using the equity method.
In connection with the spin-off, TripAdvisor Holdings, LLC and TripAdvisor LLC, both post-spin-off
subsidiaries of TripAdvisor, were released from their guarantees of obligations under our existing debt facility
and instruments. The discontinued operations of TripAdvisor and its subsidiaries have been presented within the
following condensed consolidating financial statements within Guarantor Subsidiaries and Non-Guarantor
Subsidiaries consistent with the classification in prior periods. In addition, in connection with the spin-off and the
Notice of Redemption of the 8.5% Notes as described in Note 4 — Discontinued Operations, such 8.5% Notes
and the related deposit for the redemption have been included within total current liabilities and total current
assets of the Parent as of December 31, 2011.
CONDENSED CONSOLIDATING STATEMENT OF OPERATION
Year Ended December 31, 2012
Parent
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries Eliminations Consolidated
(In thousands)
Revenue $ — $3,490,462 $ 546,204 $ (6,319) $4,030,347
Costs and expenses:
Cost of revenue — 719,121 178,010 1,473 898,604
Selling and marketing — 1,271,163 458,565 (8,691) 1,721,037
Technology and content — 355,567 129,860 (529) 484,898
General and administrative — 220,360 123,566 1,428 345,354
Amortization of intangible assets — 6,444 25,261 — 31,705
Legal reserves, occupancy tax and other — 117,025 — — 117,025
Intercompany (income) expense, net — 692,325 (692,325) — —
Operating income — 108,457 323,267 — 431,724
Other income (expense):
Equity in pre-tax earnings of
consolidated subsidiaries 356,110 336,173 — (692,283) —
Other, net (83,306) (25,079) 26,718 — (81,667)
Total other income (expense), net 272,804 311,094 26,718 (692,283) (81,667)
Income before income taxes 272,804 419,551 349,985 (692,283) 350,057
Provision for income taxes 29,906 (60,245) (16,739) — (47,078)
Income from continuing operations 302,710 359,306 333,246 (692,283) 302,979
Discontinued operations, net of taxes (22,539) — — — (22,539)
Net income 280,171 359,306 333,246 (692,283) 280,440
Net income attributable to noncontrolling
interests — — (269) — (269)
Net income attributable to Expedia, Inc. $280,171 $ 359,306 $ 332,977 $(692,283) $ 280,171
Comprehensive income attributable to
Expedia, Inc. $280,171 $ 359,921 $ 349,734 $(692,283) $ 297,543
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