Expedia 2015 Annual Report Download - page 21

We are also in the early stages of a multi-year effort to increase our utilization of cloud computing services.
Implementations and system enhancements such as these have been in the past, and may continue to be in the
future, more time consuming and expensive than originally anticipated, and the resources devoted to those efforts
have adversely affected, and may continue to adversely affect, our ability to develop new site innovations. In
addition, during the migration process the sites have in the past, and may continue in the future, to experience
reduced functionality and decreases in conversion rates. Also, we may be unable to devote financial resources to
new technologies and systems, or enhancements to existing infrastructure, technologies and systems, in the
future. Overall, these implementations and systems enhancements may not achieve the desired results in a timely
manner, to the extent anticipated, or at all. If any of these events occur, our business and financial performance
could suffer.
Acquisitions, investments or significant commercial arrangements could result in operating and
financial difficulties.
We have acquired, invested in or entered into significant commercial arrangements with a number of
businesses in the past, and our future growth may depend, in part, on future acquisitions, investments or
significant commercial arrangements, any of which could be material to our financial condition and results of
operations. Certain financial and operational risks related to acquisitions, investments or significant commercial
arrangements that may have a material impact on our business are:
• Use of cash resources and incurrence of debt and contingent liabilities in funding acquisitions,
including with regard to future payment obligations in connection with put/call rights, may limit other
potential uses of our cash, including stock repurchases, dividend payments and retirement of
outstanding indebtedness;
• Amortization expenses related to acquired intangible assets and other adverse accounting
consequences, including changes in fair value of contingent consideration;
• Expected and unexpected costs incurred in pursuing acquisitions, including identifying and performing
due diligence on potential acquisition targets that may or may not be successful, if unsuccessful could
result in unexpected litigation or regulatory exposure, unfavorable accounting treatment, unexpected
increases in taxes due, a loss of anticipated tax benefits or other adverse effects on our business,
operating results or financial condition;
• Diversion of management’s attention or other resources from our existing businesses;
• Difficulties and expenses in assimilating the operations, products, technology, privacy protection
systems, information systems or personnel of the acquired company;
• Impairment of relationships with employees, suppliers, customers, vendors and affiliates of our
business and the acquired business;
• The assumption of known and unknown debt and liabilities of the acquired company;
• Failure of the acquired company to achieve anticipated traffic, transactions, revenues, earnings or cash
flows or to retain key management or employees;
• Failure to generate adequate returns on our acquisitions and investments, or returns in excess of
alternative uses of capital;
• Failure to properly and timely integrate acquired companies and their operations, reducing our ability
to achieve, among other things, anticipated returns on our acquisitions through cost savings and other
synergies;
• Entrance into markets in which we have no direct prior experience and increased complexity in our
business;
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