Expedia 2015 Annual Report Download - page 138

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NOTE 20 — Valuation and Qualifying Accounts
The following table presents the changes in our valuation and qualifying accounts. Other reserves primarily
include our accrual of the cost associated with purchases made on our website related to the use of fraudulent
credit cards “charged-back” due to payment disputes and cancellation fees.
Description
Balance of
Beginning of
Period
Charges to
Earnings
Charges to
Other
Accounts(1) Deductions
Balance at End
of Period
(In thousands)
2015
Allowance for doubtful accounts $13,760 $11,513 $10,309 $(8,547) $27,035
Other reserves 25,258 29,959
2014
Allowance for doubtful accounts $11,555 $11,176 $ 440 $(9,411) $13,760
Other reserves 15,891 25,258
2013
Allowance for doubtful accounts $10,771 $ 6,706 $ 3,410 $(9,332) $11,555
Other reserves 11,195 15,891
(1) Charges to other accounts primarily relates to amounts acquired through acquisitions and net translation
adjustments.
NOTE 21 — Quarterly Financial Information (Unaudited)
Three Months Ended
December 31 September 30 June 30 March 31
(In thousands, except per share data)
Year ended December 31, 2015
Revenue $1,698,567 $1,937,753 $1,662,600 $1,373,397
Operating income (loss)(1) 29,477 344,998 90,092 (51,001)
Net income (loss) attributable to Expedia, Inc. (12,538) 283,216 449,644 44,143
Basic earnings (loss) per share(2) $ (0.09) $ 2.18 $ 3.49 $ 0.35
Diluted earnings (loss) per share(2) (0.09) 2.12 3.38 0.34
Year ended December 31, 2014
Revenue $1,355,978 $1,712,504 $1,494,632 $1,200,371
Operating income (loss)(1) 94,706 296,836 129,220 (2,998)
Net income (loss) attributable to Expedia, Inc. 65,969 257,059 89,373 (14,304)
Basic earnings (loss) per share(2) 0.52 $ 2.01 $ 0.69 $ (0.11)
Diluted earnings (loss) per share(2) 0.50 1.94 0.67 (0.11)
(1) During the fourth quarters of 2015 and 2014, we recognized $23 million and $26 million related to
restructuring and related reorganization charges.
(2) Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the
quarterly earnings per share may not equal the total computed for the year.
NOTE 22 — Guarantor and Non-Guarantor Supplemental Financial Information
Condensed consolidating financial information of Expedia, Inc. (the “Parent”), our subsidiaries that are
guarantors of our debt facility and instruments (the “Guarantor Subsidiaries”), and our subsidiaries that are not
guarantors of our debt facility and instruments (the “Non-Guarantor Subsidiaries”) is shown below. The debt
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.
F-53