Expedia 2013 Annual Report Download - page 104

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connection with the redemption, we incurred a pre-tax loss from early extinguishment of debt of approximately
$38 million (or $24 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 was recorded within
discontinued operations in the first quarter of 2012, as that was the period in which the bonds were legally
extinguished. During 2013, we received an income tax refund of $14 million related to the tax benefit for
extinguishment, which was included within cash provided by discontinued operations in our consolidated
statement of cash flows for the period.
NOTE 5 — Fair Value Measurements
Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 are
classified using the fair value hierarchy in the table below:
Total Level 1 Level 2
(In thousands)
Assets
Cash equivalents:
Money market funds $229,425 $ 229,425 $ —
Time deposits 138,956 — 138,956
Restricted cash:
Time deposits 17,085 — 17,085
Derivatives:
Foreign currency forward contracts 2,225 — 2,225
Investments:
Time deposits 258,308 — 258,308
Corporate debt securities 200,386 — 200,386
Total assets $846,385 $ 229,425 $616,960
Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 are
classified using the fair value hierarchy in the table below:
Total Level 1 Level 2
(In thousands)
Assets
Cash equivalents:
Money market funds $ 677,523 $ 677,523 $ —
Time deposits 89,084 — 89,084
Restricted cash:
Time deposits 9,855 — 9,855
Investments:
Time deposits 525,533 — 525,533
Corporate debt securities 245,477 — 245,477
Total assets $1,547,472 $ 677,523 $869,949
Liabilities
Derivatives:
Foreign currency forward contracts $ 3,290 $ — $ 3,290
We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash
equivalents and investments using quoted market prices or alternative pricing sources and models utilizing
market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency
exchange rates in active markets, a Level 2 input.
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