Expedia 2015 Annual Report Download - page 65

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Technology and content expense increased $144 million for 2015 compared to 2014 primarily due to
increased personnel and overhead costs of $64 million to support key technology projects primarily for our
corporate technology function and Brand Expedia, increased depreciation and amortization of technology assets
of $51 million as well as an increase in other costs of $29 million due to higher licensing and maintenance and
data center costs to support the growth of the technology platforms. Acquisitions added approximately 6% to
year-on-year technology and content growth for 2015.
Technology and content expense increased $108 million in 2014 compared to 2013 primarily due to
increased depreciation and amortization of technology assets of $51 million as well as increased personnel and
overhead costs, net of capitalized salary costs, of $46 million for additional personnel to support key technology
projects for Brand Expedia, eLong, our corporate technology function and trivago, as well as a higher incentive
compensation accrual.
General and Administrative
Year ended December 31, % Change
2015 2014 2013 2015 vs 2014 2014 vs 2013
($ in millions)
Personnel and overhead $330 $277 $248 19% 12%
Professional fees and other 244 148 129 65% 15%
Total general and administrative(1) $574 $425 $377 35% 13%
% of revenue 8.6% 7.4% 7.9%
(1) Includes the following eLong amounts: $ 23 $ 24 $ 15 N/A 62%
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 $149 million in 2015 compared to 2014 due primarily to
higher professional fees and other of $96 million driven mostly by higher stock-based compensation of
$39 million, which was primarily due to additional options granted during the current year as well as expense
related to replacement awards issued in connection with acquisitions, as well as an increase of $31 million due to
higher consulting and legal fees related to heightened merger and acquisition activity. In addition, personnel and
overhead expenses increased $53 million in 2015 compared to 2014. Acquisitions, including acquisition-related
expenses, added approximately 24% of year-on-year general and administrative growth for 2015.
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 $8 million.
Amortization of Intangible Assets
Year ended December 31, % Change
2015 2014 2013 2015 vs 2014 2014 vs 2013
($ in millions)
Amortization of intangible assets $164 $ 80 $ 72 106% 11%
% of revenue 2.5% 1.4% 1.5%
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