Expedia 2015 Annual Report Download - page 72

The effect of foreign exchange on our cash balances denominated in foreign currency in 2015 showed a net
change of $18 million reflecting higher depreciation in foreign currencies in the current year compared to the
prior year. The effect of foreign exchange on our cash balances denominated in foreign currency in 2014 showed
a net change of $78 million reflecting higher depreciation in foreign currencies in the 2014 compared to 2013.
In our opinion, available cash, funds from operations and available borrowings will provide sufficient
capital resources to meet our foreseeable liquidity needs. There can be no assurance, however, that the cost of
availability of future borrowings, including refinancing, if any, will be available on terms acceptable to us.
Contractual Obligations and Commercial Commitments
The following table presents our material contractual obligations and commercial commitments as of
December 31, 2015:
By Period
Total
Less than
1 year 1 to 3 years 3 to 5 years
More than
5 years
(In millions)
Long-term debt (1) $4,687 $ 562 $ 819 $ 995 $2,311
Operating leases (2) 526 112 194 111 109
Purchase obligations (3) 245 157 82 6 —
Guarantees (4) 192 179 13 — —
Letters of credit (4) 55 51 3 1 —
Total(5) $5,705 $1,061 $1,111 $1,113 $2,420
(1) Our 7.456% Notes, 5.95% Notes, 2.5% Notes, 4.5% Notes, and 5.0% Notes include interest payments
through maturity in 2018, 2020, 2022, 2024, and 2026 respectively, based on the stated fixed rates. For the
2.5% Notes, the December 31, 2015 Euro exchange rate was used to convert the Euro 650 million to U.S.
Dollars and calculate the related U.S. Dollar interest payments. In addition, the repayment of the $403
million related to the HomeAway Convertible Notes included in accrued expenses and other current
liabilities on the consolidated balance sheet as of December 31, 2015 has been included in the less than one
year amounts.
(2) The operating leases are for office space and related office equipment. We account for these leases on a
monthly basis. Certain leases contain periodic rent escalation adjustments and renewal options. Operating
lease obligations expire at various dates with the latest maturity in 2026.
(3) Our purchase obligations represent the minimum obligations we have under agreements with certain of our
vendors and marketing partners. These minimum obligations are less than our projected use for those
periods. Payments may be more than the minimum obligations based on actual use.
(4) Guarantees and LOCs are commitments that represent funding responsibilities that may require our
performance in the event of third-party demands or contingent events. We use our stand-by LOCs primarily
for certain regulatory purposes as well as to secure payment for hotel room transactions to particular hotel
properties. Of the outstanding balance of our stand-by LOCs, $29 million directly reduces the amount
available to us from our revolving credit facility. The LOC amounts in the above table represent the amount
of commitment expiration per period. In addition, we provide a guarantee to the aviation authorities of
certain foreign countries to protect against potential non-delivery of our packaged travel services sold within
those countries. These countries hold all travel agents and tour companies to the same standard. Our
guarantees also include bonds relating to tax assessments that we are contesting and certain surety bonds
related to various company performance obligations.
(5) Excludes $171 million of unrecognized tax benefits for which we cannot make a reasonably reliable
estimate of the amount and period of payment.
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