Expedia 2014 Annual Report Download - page 65

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overhead costs, net of capitalized salary costs, of $46 million for additional personnel to support key technology
projects for Brand Expedia, eLong, our corporate technology function and trivago, as well as a higher incentive
compensation accrual.
The year-over-year increase in technology and content expense of $93 million in 2013 was primarily due to
higher personnel costs, net of capitalized salary costs, of $34 million for additional headcount to support key
technology project for our corporate technology function, Brand Expedia and supply organization as well as
increased depreciation and amortization of technology assets of $44 million.
General and Administrative
Year ended December 31, % Change
2014 2013 2012 2014 vs 2013 2013 vs 2012
($ in millions)
Personnel and overhead $277 $248 $225 12% 10%
Professional fees and other 148 129 120 15% 7%
Total general and administrative $425 $377 $345 13% 9%
% of revenue 7.4% 7.9% 8.6%
General and administrative expense consists primarily of personnel-related costs, including our executive
leadership, finance, legal and human resource functions as well as fees for external professional services
including legal, tax and accounting, and other costs including stock-based compensation.
General and administrative expense increased $48 million in 2014 compared to 2013 due primarily to
personnel and overhead expense increases of $29 million, of which additional headcount costs, including higher
incentive compensation accruals, drove the majority of the total increase. Professional fees and other increased
$19 million during 2014 compared to 2013 primarily due to an increase in acquisition-related expenses of $10
million as well as higher stock-based compensation of $8 million.
In 2013, the $32 million increase in general and administrative expense was primarily due to higher
personnel and overhead expenses of $22 million, of which additional headcount drove the majority of the total
increase. In addition, professional fees and other increased $10 million in 2013 driven in large part by higher
professional fees. Acquisitions added approximately 3% to the year-on-year general and administrative expense
growth.
Amortization of Intangible Assets
Year ended December 31, % Change
2014 2013 2012 2014 vs 2013 2013 vs 2012
($ in millions)
Amortization of intangible assets $ 80 $ 72 $ 32 11% 126%
% of revenue 1.4% 1.5% 0.8%
In 2014, amortization increased $8 million compared to 2013 primarily due to amortization related to new
business acquisitions, partially offset by the completion of amortization related to certain intangible assets.
In 2013, amortization increased $40 million compared to 2012 due to amortization related to new business
acquisitions, including trivago in March 2013. In addition, amortization included an approximate $3 million
impairment loss related to an indefinite-lived trade name in our Leisure segment.
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