Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 29, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EXPE | ||
Entity Registrant Name | EXPEDIA, INC. | ||
Entity Central Index Key | 1,324,424 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 10,856,875,000 | ||
Common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 137,780,456 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 12,799,999 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenue | $ 6,672,317 | $ 5,763,485 | $ 4,771,259 | |
Costs and expenses: | ||||
Cost of revenue | [1] | 1,309,559 | 1,179,081 | 1,038,034 |
Selling and marketing | [1] | 3,381,086 | 2,808,329 | 2,196,145 |
Technology and content | [1] | 830,244 | 686,154 | 577,820 |
General and administrative | [1] | 573,913 | 425,373 | 377,078 |
Amortization of intangible assets | 163,665 | 79,615 | 71,731 | |
Legal reserves, occupancy tax and other | (104,587) | 41,539 | 77,919 | |
Restructuring and related reorganization charges | [1] | 104,871 | 25,630 | |
Acquisition-related and other | [1] | 66,472 | ||
Operating income | 413,566 | 517,764 | 366,060 | |
Other income (expense): | ||||
Interest income | 16,695 | 27,288 | 24,779 | |
Interest expense | (126,195) | (98,089) | (87,358) | |
Gain on sale of business | 508,810 | |||
Other, net | 113,086 | 17,678 | (2,788) | |
Other income (expense), net | 512,396 | (53,123) | (65,367) | |
Income before income taxes | 925,962 | 464,641 | 300,693 | |
Provision for income taxes | (203,214) | (91,691) | (84,335) | |
Net income | 722,748 | 372,950 | 216,358 | |
Net loss attributable to noncontrolling interests | 41,717 | 25,147 | 16,492 | |
Net income attributable to Expedia, Inc. | $ 764,465 | $ 398,097 | $ 232,850 | |
Earnings per share attributable to Expedia, Inc. available to common stockholders: | ||||
Basic | $ 5.87 | $ 3.09 | $ 1.73 | |
Diluted | $ 5.70 | $ 2.99 | $ 1.67 | |
Shares used in computing earnings per share: | ||||
Basic | 130,159 | 128,912 | 134,912 | |
Diluted | 134,018 | 133,168 | 139,593 | |
Dividends declared per common share | $ 0.84 | $ 0.66 | $ 0.56 | |
[1] | Includes stock-based compensation as follows: Cost of revenue $ 5,307 $ 3,921 $ 3,752 Selling and marketing 33,164 18,067 16,190 Technology and content 26,766 22,100 20,465 General and administrative 80,082 40,923 33,123 Restructuring and related reorganization charges 32,749 - - Acquisition-related and other - - 56,643 |
CONSOLIDATED STATEMENTS OF OPE3
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation | $ 178,068 | $ 85,011 | $ 130,173 |
Cost of revenue | |||
Stock-based compensation | 5,307 | 3,921 | 3,752 |
Selling and marketing | |||
Stock-based compensation | 33,164 | 18,067 | 16,190 |
Technology and content | |||
Stock-based compensation | 26,766 | 22,100 | 20,465 |
General and administrative | |||
Stock-based compensation | 80,082 | $ 40,923 | 33,123 |
Restructuring and related reorganization charges | |||
Stock-based compensation | $ 32,749 | ||
Acquisition-related and other | |||
Stock-based compensation | $ 56,643 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 722,748 | $ 372,950 | $ 216,358 |
Other comprehensive income (loss), net of tax | |||
Currency translation adjustments and other, net of taxes | (147,815) | (164,666) | 23,506 |
Net reclassification of foreign currency translation adjustments into total other income (expenses), net | (43,183) | ||
Unrealized gains (losses) on available for sale securities, net of taxes | (67) | (60) | (1,324) |
Other comprehensive income (loss), net of tax | (191,065) | (164,726) | 22,182 |
Comprehensive income | 531,683 | 208,224 | 238,540 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (86,662) | (32,902) | (12,485) |
Comprehensive income attributable to Expedia, Inc. | $ 618,345 | $ 241,126 | $ 251,025 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 1,676,299 | $ 1,402,700 | |
Restricted cash and cash equivalents | 11,324 | 34,888 | |
Short-term investments | 33,739 | 355,780 | |
Accounts receivable, net of allowance of $27,035 and $13,760 | 1,082,406 | 778,334 | |
Deferred income taxes | 169,269 | ||
Income taxes receivable | 13,805 | 17,161 | |
Prepaid expenses and other current assets | 161,188 | 166,357 | |
Total current assets | 2,978,761 | 2,924,489 | |
Property and equipment, net | 1,064,259 | 553,126 | |
Long-term investments and other assets | 658,439 | 286,882 | |
Deferred income taxes | 15,458 | 10,053 | |
Intangible assets, net | 2,793,954 | 1,290,087 | |
Goodwill | 7,992,941 | 3,955,901 | |
TOTAL ASSETS | 15,503,812 | 9,020,538 | |
Current liabilities: | |||
Accounts payable, merchant | 1,329,870 | 1,188,483 | |
Accounts payable, other | 485,557 | 361,382 | |
Deferred merchant bookings | 2,337,037 | 1,761,258 | |
Deferred revenue | 235,809 | 62,206 | |
Income taxes payable | 68,019 | 59,661 | |
Accrued expenses and other current liabilities | 1,469,725 | 753,625 | |
Total current liabilities | 5,926,017 | 4,186,615 | |
Long-term debt | [1] | 3,201,277 | 1,746,787 |
Deferred income taxes | 473,841 | 452,958 | |
Other long-term liabilities | $ 314,432 | $ 180,376 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | $ 658,478 | $ 560,073 | |
Stockholders' equity: | |||
Additional paid-in capital | 8,696,508 | 5,921,140 | |
Treasury stock - Common stock, at cost | (4,054,909) | (3,998,120) | |
Retained earnings | 507,666 | ||
Accumulated other comprehensive income (loss) | (284,894) | (138,774) | |
Total Expedia, Inc. stockholders' equity | 4,864,394 | 1,784,267 | |
Non-redeemable noncontrolling interest | 65,373 | 109,462 | |
Total stockholders' equity | 4,929,767 | 1,893,729 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 15,503,812 | 9,020,538 | |
Common stock | |||
Stockholders' equity: | |||
Common stock | 22 | 20 | |
Total stockholders' equity | 22 | 20 | |
Class B Common Stock | |||
Stockholders' equity: | |||
Common stock | 1 | 1 | |
Total stockholders' equity | $ 1 | $ 1 | |
[1] | Excludes debt acquired in the HomeAway acquisition included within accrued expenses and other current liabilities as of December 31, 2015. For further information, see Note 3 - Acquisitions and Other Investments. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance | $ 27,035 | $ 13,760 |
Treasury stock - Common stock, Shares | 82,924,000 | 82,535,000 |
Class B Common Stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, Authorized | 400,000,000 | 400,000,000 |
Common stock, Shares issued | 12,800,000 | 12,800,000 |
Common stock, Shares outstanding | 12,800,000 | 12,800,000 |
Common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, Authorized | 1,600,000,000 | 1,600,000,000 |
Common stock, Shares issued | 220,383,000 | 196,802,000 |
Common stock, Shares outstanding | 137,459,000 | 114,267,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class B Common Stock | Common stock | Additional paid-in capital | Treasury stock | Retained earnings (deficit) | Accumulated other comprehensive income (loss) | Non-redeemable noncontrolling interest | |
Beginning Balance (in shares) at Dec. 31, 2012 | 12,799,999 | 189,254,916 | 66,725,321 | ||||||
Beginning Balance at Dec. 31, 2012 | $ 2,389,388 | $ 1 | $ 19 | $ 5,675,075 | $ (2,952,790) | $ (442,068) | $ 22 | $ 109,129 | |
Net income (excludes of net loss attributable to redeemable noncontrolling interest) | 223,488 | 232,850 | (9,362) | ||||||
Other comprehensive income (loss), net of taxes | 22,182 | 18,175 | 4,007 | ||||||
Proceeds from exercise of equity instruments and employee stock purchase plans (in shares) | 3,307,451 | ||||||||
Proceeds from exercise of equity instruments and employee stock purchase plans | 52,081 | 52,081 | |||||||
Tax benefits on equity awards | 38,799 | 38,799 | |||||||
Treasury stock activity related to vesting of equity instruments (Shares) | 159,181 | ||||||||
Treasury stock activity related to vesting of equity instruments | $ (7,993) | $ (7,993) | |||||||
Common stock repurchases (in shares) | 9,259,400 | 9,259,400 | |||||||
Common stock repurchases | $ (514,907) | [1] | $ (514,907) | ||||||
Proceeds from issuance of treasury stock (shares) | (467,672) | ||||||||
Proceeds from issuance of treasury stock | 25,273 | 15,258 | $ 10,015 | ||||||
Cash dividends | (75,760) | (75,760) | |||||||
Adjustment to the fair value of redeemable noncontrolling interests | (26,614) | (26,614) | |||||||
Changes in ownership of noncontrolling interests | 16,675 | 6,928 | 9,747 | ||||||
Stock-based compensation expense | 116,735 | 116,735 | |||||||
Other | (362) | (362) | |||||||
Ending Balance (in shares) at Dec. 31, 2013 | 12,799,999 | 192,562,367 | 75,676,230 | ||||||
Ending Balance at Dec. 31, 2013 | 2,258,985 | $ 1 | $ 19 | 5,802,140 | $ (3,465,675) | (209,218) | 18,197 | 113,521 | |
Net income (excludes of net loss attributable to redeemable noncontrolling interest) | 382,640 | 398,097 | (15,457) | ||||||
Other comprehensive income (loss), net of taxes | (164,726) | ||||||||
Other comprehensive income (loss), net of taxes | (146,506) | (156,971) | 10,465 | ||||||
Proceeds from exercise of equity instruments and employee stock purchase plans (in shares) | 4,064,829 | ||||||||
Proceeds from exercise of equity instruments and employee stock purchase plans | 104,599 | $ 1 | 104,598 | ||||||
Tax benefits on equity awards | 57,132 | 57,132 | |||||||
Issuance of common stock in connection with acquisition | 175,040 | ||||||||
Treasury stock activity related to vesting of equity instruments (Shares) | 9,689 | ||||||||
Treasury stock activity related to vesting of equity instruments | $ (773) | $ (773) | |||||||
Common stock repurchases (in shares) | 7,040,621 | 7,040,621 | |||||||
Common stock repurchases | $ (537,088) | [1] | $ (537,088) | ||||||
Proceeds from issuance of treasury stock (shares) | (264,608) | ||||||||
Proceeds from issuance of treasury stock | 20,404 | 14,988 | $ 5,416 | ||||||
Cash dividends | (84,697) | (38,833) | (45,864) | ||||||
Adjustment to the fair value of redeemable noncontrolling interests | (259,984) | (116,969) | (143,015) | ||||||
Changes in ownership of noncontrolling interests | 25,023 | 24,090 | 933 | ||||||
Stock-based compensation expense | 69,620 | 69,620 | |||||||
Other | 4,374 | 4,374 | |||||||
Other (in shares) | 73,464 | ||||||||
Ending Balance (in shares) at Dec. 31, 2014 | 12,799,999 | 196,802,236 | 82,535,396 | ||||||
Ending Balance at Dec. 31, 2014 | 1,893,729 | $ 1 | $ 20 | 5,921,140 | $ (3,998,120) | (138,774) | 109,462 | ||
Net income (excludes of net loss attributable to redeemable noncontrolling interest) | 738,165 | 764,465 | (26,300) | ||||||
Other comprehensive income (loss), net of taxes | (191,065) | ||||||||
Other comprehensive income (loss), net of taxes | (145,479) | (146,120) | 641 | ||||||
Proceeds from exercise of equity instruments and employee stock purchase plans (in shares) | 3,385,749 | ||||||||
Proceeds from exercise of equity instruments and employee stock purchase plans | 96,534 | 96,534 | |||||||
Withholding taxes for stock options | (85,033) | (85,033) | |||||||
Tax benefits on equity awards | 89,128 | 89,128 | |||||||
Issuance of common stock in connection with acquisition | 20,195,139 | ||||||||
Issuance of common stock in connection with acquisitions | 2,552,342 | $ 2 | 2,552,340 | ||||||
Treasury stock activity related to vesting of equity instruments (Shares) | 127,712 | ||||||||
Treasury stock activity related to vesting of equity instruments | $ (15,763) | $ (15,763) | |||||||
Common stock repurchases (in shares) | 525,504 | 525,504 | |||||||
Common stock repurchases | $ (44,822) | [1] | $ (44,822) | ||||||
Proceeds from issuance of treasury stock (shares) | (264,841) | ||||||||
Proceeds from issuance of treasury stock | 22,575 | 18,779 | $ 3,796 | ||||||
Cash dividends | (108,778) | (108,778) | |||||||
Adjustment to the fair value of redeemable noncontrolling interests | (188,579) | (40,558) | (148,021) | ||||||
Sale of controlling interest in eLong | (92,550) | (92,550) | |||||||
Acquisition of noncontrolling interest | 64,115 | 64,115 | |||||||
Changes in ownership of noncontrolling interests | 5,807 | (4,198) | 10,005 | ||||||
Stock-based compensation expense | 147,988 | 147,988 | |||||||
Other | 388 | 388 | |||||||
Ending Balance (in shares) at Dec. 31, 2015 | 12,799,999 | 220,383,124 | 82,923,771 | ||||||
Ending Balance at Dec. 31, 2015 | $ 4,929,767 | $ 1 | $ 22 | $ 8,696,508 | $ (4,054,909) | $ 507,666 | $ (284,894) | $ 65,373 | |
[1] | Amount excludes transaction costs. |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net loss attributable to redeemable noncontrolling interest | $ (15,417) | $ (9,690) | $ (7,130) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income | $ 722,748 | $ 372,950 | $ 216,358 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | |||
Depreciation of property and equipment, including internal-use software and website development | 336,680 | 265,817 | 211,744 |
Amortization of stock-based compensation | 178,068 | 85,011 | 130,173 |
Amortization of intangible assets | 163,665 | 79,615 | 71,731 |
Deferred income taxes | (21,635) | (79,031) | (772) |
Foreign exchange (gain) loss on cash, cash equivalents and short-term investments, net | 88,528 | 79,410 | 56,822 |
Realized (gain) loss on foreign currency forwards | (54,226) | 5,481 | (40,850) |
Gain on sale of business | (508,810) | ||
Noncontrolling interest basis adjustment | (77,400) | ||
Other | 15,865 | 8,966 | 10,576 |
Changes in operating assets and liabilities, net of effects from acquisitions and disposals: | |||
Accounts receivable | (198,262) | (157,957) | (127,327) |
Prepaid expenses and other assets | 97,701 | (65,203) | (18,724) |
Accounts payable, merchant | 97,248 | 110,603 | 91,503 |
Accounts payable, other, accrued expenses and other current liabilities | 194,458 | 271,454 | (68,239) |
Tax payable/receivable, net | 39,776 | 39,971 | (29,746) |
Deferred merchant bookings | 299,534 | 331,133 | 246,229 |
Deferred revenue | (5,893) | 18,739 | 13,722 |
Net cash provided by operating activities from continuing operations | 1,368,045 | 1,366,959 | 763,200 |
Investing activities: | |||
Capital expenditures, including internal-use software and website development | (787,041) | (328,387) | (308,581) |
Purchases of investments | (521,329) | (1,194,210) | (1,216,591) |
Sales and maturities of investments | 410,923 | 1,162,557 | 1,502,576 |
Acquisitions, net of cash acquired | (2,063,649) | (560,668) | (541,247) |
Proceeds from sale of business, net of cash divested and disposal costs | 523,882 | ||
Net settlement of foreign currency forwards | 54,226 | (5,481) | 40,850 |
Other, net | 11,728 | 1,932 | (2,520) |
Net cash provided by (used in) investing activities from continuing operations | (2,371,260) | (924,257) | (525,513) |
Financing activities: | |||
Proceeds from issuance of long-term debt, net of issuance costs | 1,441,860 | 492,894 | |
Purchases of treasury stock | (60,546) | (537,861) | (522,900) |
Proceeds from issuance of treasury stock | 22,575 | 20,404 | 25,273 |
Payment of dividends to stockholders | (108,527) | (84,697) | (75,760) |
Proceeds from exercise of equity awards and employee stock purchase plan | 97,716 | 108,121 | 56,836 |
Excess tax benefit on equity awards | 90,855 | 58,156 | 39,606 |
Withholding taxes for stock option exercises | (85,033) | ||
Other, net | 5,299 | (8,868) | (15,571) |
Net cash provided by (used in) financing activities from continuing operations | 1,404,199 | 48,149 | (492,516) |
Net cash provided by (used in) continuing operations | 400,984 | 490,851 | (254,829) |
Net cash provided by discontinued operations | 13,637 | ||
Effect of exchange rate changes on cash and cash equivalents | (127,385) | (109,184) | (30,936) |
Net increase (decrease) in cash and cash equivalents | 273,599 | 381,667 | (272,128) |
Cash and cash equivalents at beginning of year | 1,402,700 | 1,021,033 | 1,293,161 |
Cash and cash equivalents at end of year | 1,676,299 | 1,402,700 | 1,021,033 |
Supplemental cash flow information | |||
Cash paid for interest from continuing operations | 109,507 | 87,555 | 84,136 |
Income tax payments, net from continuing operations | $ 96,834 | $ 70,339 | $ 73,439 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Basis of Presentation | NOTE 1 — Organization and Basis of Presentation Description of Business Expedia, Inc. and its subsidiaries provide travel products and services to leisure and corporate travelers in the United States and abroad as well as various media and advertising offerings to travel and non-travel advertisers. These travel products and services are offered through a diversified portfolio of brands including: Expedia.com ® ® ® ® ® ® ® ® ® Basis of Presentation The accompanying consolidated financial statements include Expedia, Inc., our wholly-owned subsidiaries, and entities we control, or in which we have a variable interest and are the primary beneficiary of expected cash profits or losses. We record our investments in entities that we do not control, but over which we have the ability to exercise significant influence, using the equity method. We have eliminated significant intercompany transactions and accounts. We believe that the assumptions underlying our consolidated financial statements are reasonable. However, these consolidated financial statements do not present our future financial position, the results of our future operations and cash flows. Seasonality We generally experience seasonal fluctuations in the demand for our travel products and services. For example, traditional leisure travel bookings are generally the highest in the first three quarters as travelers plan and book their spring, summer and holiday travel. The number of bookings typically decreases in the fourth quarter. Because revenue for most of our travel products, including merchant and agency hotel, is recognized when the travel takes place rather than when it is booked, revenue typically lags bookings by several weeks or longer. The seasonal revenue impact is exacerbated with respect to income by the nature of our variable cost of revenue and direct sales and marketing costs, which we typically realize in closer alignment to booking volumes, and the more stable nature of our fixed costs. Furthermore, operating profits for our primary advertising business, trivago, are experienced in the second half of the year as selling and marketing costs offset revenue in the first half of the year as we aggressively market during the busy booking period for summer travel. As a result, revenue and income are typically the lowest in the first quarter and highest in the third quarter. The continued growth of our international operations or a change in our product mix, including the assimilation, growth and shift to more of a transaction-based business model for the vacation rental listing business of HomeAway, may influence the typical trend of the seasonality in the future. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies | NOTE 2 — Significant Accounting Policies Consolidation Our consolidated financial statements include the accounts of Expedia, Inc., our wholly-owned subsidiaries, and entities for which we control a majority of the entity’s outstanding common stock. We record noncontrolling interest in our consolidated financial statements to recognize the minority ownership interest in our consolidated subsidiaries. Noncontrolling interest in the earnings and losses of consolidated subsidiaries represent the share of net income or loss allocated to members or partners in our consolidated entities, which includes the noncontrolling interest share of net income or loss from our redeemable and non-redeemable noncontrolling interest entities. We characterize our minority interest in AirAsia-Expedia as a non-redeemable noncontrolling interest and classify it as a component of stockholders’ equity in our consolidated financial statements. Noncontrolling interests with shares redeemable at the option of the minority holders, such as trivago, have been included in redeemable noncontrolling interests. See “Redeemable Noncontrolling Interest” below for further information. We have eliminated significant intercompany transactions and accounts in our consolidated financial statements. Accounting Estimates We use estimates and assumptions in the preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Our estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our consolidated financial statements. These estimates and assumptions also affect the reported amount of net income or loss during any period. Our actual financial results could differ significantly from these estimates. The significant estimates underlying our consolidated financial statements include revenue recognition; recoverability of current and long-lived assets, intangible assets and goodwill; income and transactional taxes, such as potential settlements related to occupancy and excise taxes; loss contingencies; loyalty program liabilities; redeemable noncontrolling interests; acquisition purchase price allocations; stock-based compensation and accounting for derivative instruments. Reclassifications We have reclassified certain amounts related to our prior period results to conform to our current period presentation. We also included a reclassification on our consolidated balance sheet as of December 31, 2014 to correct the immaterial presentation of cash dividends as a reduction to retained earnings to the extent the Company maintained retained earnings instead of additional paid-in capital. Revenue Recognition We recognize revenue when it is earned and realizable based on the following criteria: persuasive evidence that an arrangement exists, services have been rendered, the price is fixed or determinable and collectability is reasonably assured. We also evaluate the presentation of revenue on a gross versus a net basis. The consensus of the authoritative accounting literature is that the presentation of revenue as “the gross amount billed to a customer because it has earned revenue from the sale of goods or services or the net amount retained (that is, the amount billed to a customer less the amount paid to a supplier) because it has earned a commission or fee” is a matter of judgment that depends on the relevant facts and circumstances. In making an evaluation of this issue, some of the factors that should be considered are: whether we are the primary obligor in the arrangement (strong indicator); whether we have general supply risk (before customer order is placed or upon customer return) (strong indicator); and whether we have latitude in establishing price. The guidance clearly indicates that the evaluations of these factors, which at times can be contradictory, are subject to significant judgment and subjectivity. If the conclusion drawn is that we perform as an agent or a broker without assuming the risks and rewards of ownership of goods, revenue should be reported on a net basis. For our primary transaction-based revenue models, discussed below, we have determined net presentation is appropriate for the majority of revenue transactions. We offer travel products and services on a stand-alone and package basis primarily through the following business models: the merchant model, the agency model and the advertising model. In addition, upon our acquisition of HomeAway on December 15, 2015, we also earn revenue related to vacation rental listing and other ancillary services provided to property owners and managers. Under the merchant model, we facilitate the booking of hotel rooms, airline seats, car rentals and destination services from our travel suppliers and we are the merchant of record for such bookings. The majority of our merchant transactions relate to hotel bookings. Under the agency model, we act as the agent in the transaction, passing reservations booked by the traveler to the relevant travel provider. We receive commissions or ticketing fees from the travel supplier and/or traveler. For certain agency airline, hotel and car transactions, we also receive fees from global distribution systems partners that control the computer systems through which these reservations are booked. Under the advertising model, we offer travel and non-travel advertisers access to a potential source of incremental traffic and transactions through our various media and advertising offerings on trivago and our transaction-based websites. Vacation rental listing revenue is primarily earned on a subscription basis where property owners or managers purchase in advance online advertising services related to the listing of their properties for rent over a fixed term (typically one year). Listing revenue is also generated on a commission basis, when traveler bookings are completed on our websites. Merchant Hotel. Agency and Merchant Air. Agency Hotel, Car and Cruise. Packages. Advertising Vacation Rental Listing and Other Ancillary Services. Other Cash and Cash Equivalents Our cash and cash equivalents include cash and liquid financial instruments, including money market funds and time deposit investments, with maturities of three months or less when purchased. Short-term and Long-term Investments We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. Based on our intent and ability to hold certain assets until maturity, we may classify certain debt securities as held to maturity and measure them at amortized cost. Investments classified as available for sale are recorded at fair value with unrealized holding gains and losses recorded, net of tax, as a component of accumulated other comprehensive income. Realized gains and losses from the sale of available for sale investments, if any, are determined on a specific identification basis. Investments with remaining maturities of less than one year are classified within short-term investments. All other investments with remaining maturities ranging from one year to five years are classified within long-term investments and other assets. We record investments using the equity method when we have the ability to exercise significant influence over the investee. Equity investments without readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for using the cost method of accounting and classified within long-term investments and other assets. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional investments. As of December 31, 2015 and 2014, we had $299 million and $12 million of cost method investments. We periodically evaluate the recoverability of investments and record a write-down to fair value if a decline in value is determined to be other-than-temporary. Accounts Receivable Accounts receivable are generally due within thirty days and are recorded net of an allowance for doubtful accounts. We consider accounts outstanding longer than the contractual payment terms as past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the condition of the general economy and industry as a whole. Property and Equipment We record property and equipment at cost, net of accumulated depreciation and amortization. We also capitalize certain costs incurred related to the development of internal use software. We capitalize costs incurred during the application development stage related to the development of internal use software. We expense costs incurred related to the planning and post-implementation phases of development as incurred. We compute depreciation using the straight-line method over the estimated useful lives of the assets, which is three to five years for computer equipment, capitalized software development and furniture and other equipment. We amortize leasehold improvement using the straight-line method, over the shorter of the estimated useful life of the improvement or the remaining term of the lease. We establish assets and liabilities for the present value of estimated future costs to return certain of our leased facilities to their original condition under the authoritative accounting guidance for asset retirement obligations. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs. Business Combinations We assign the value of the consideration transferred to acquire a business to the tangible assets and identifiable intangible assets acquired and liabilities assumed on the basis of their fair values at the date of acquisition. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships and trade names, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. In September 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that simplifies the accounting for measurement-period adjustments in a business combination. Under the ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined rather than retrospectively. The guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years with early adoption permitted for financial statements that have not been issued. We elected to early adopt the third quarter of 2015. Recoverability of Goodwill and Indefinite-Lived Intangible Assets Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination as of the acquisition date. We assess goodwill and indefinite-lived intangible assets, neither of which is amortized, for impairment annually as of October 1, or more frequently, if events and circumstances indicate impairment may have occurred. In the evaluation of goodwill for impairment, we typically first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying amount. If so, we perform a quantitative assessment and compare the fair value of the reporting unit to the carrying value. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is potentially impaired and we proceed to step two of the impairment analysis. In step two of the analysis, we will record an impairment loss equal to the excess of the carrying value of the reporting unit’s goodwill over its implied fair value should such a circumstance arise. Periodically, we may choose to forgo the initial qualitative assessment and perform quantitative analysis to assist in our annual evaluation. We generally base our measurement of fair value of reporting units on a blended analysis of the present value of future discounted cash flows and market valuation approach. The discounted cash flows model indicates the fair value of the reporting units based on the present value of the cash flows that we expect the reporting units to generate in the future. Our significant estimates in the discounted cash flows model include: our weighted average cost of capital; long-term rate of growth and profitability of our business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the Company to comparable publicly traded firms in similar lines of business. Our significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment and assessing comparable revenue and operating income multiples in estimating the fair value of the reporting units. We believe the weighted use of discounted cash flows and market approach is the best method for determining the fair value of our reporting units because these are the most common valuation methodologies used within the travel and internet industries; and the blended use of both models compensates for the inherent risks associated with either model if used on a stand-alone basis. In addition to measuring the fair value of our reporting units as described above, we consider the combined carrying and fair values of our reporting units in relation to the Company’s total fair value of equity plus debt as of the assessment date. Our equity value assumes our fully diluted market capitalization, using either the stock price on the valuation date or the average stock price over a range of dates around the valuation date, plus an estimated acquisition premium which is based on observable transactions of comparable companies. The debt value is based on the highest value expected to be paid to repurchase the debt, which can be fair value, principal or principal plus a premium depending on the terms of each debt instrument. In our evaluation of our indefinite-lived intangible assets, we typically first perform a qualitative assessment to determine whether the fair value of the indefinite-lived intangible asset is more likely than not impaired. If so, we perform a quantitative assessment and an impairment charge is recorded for the excess of the carrying value of indefinite-lived intangible assets over their fair value. We base our measurement of fair value of indefinite-lived intangible assets, which primarily consist of trade name and trademarks, using the relief-from-royalty method. This method assumes that the trade name and trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. As with goodwill, periodically, we may choose to forgo the initial qualitative assessment and perform quantitative analysis to assist in our annual evaluation of indefinite-lived intangible assets. Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets Intangible assets with definite lives and other long-lived assets are carried at cost and are amortized on a straight-line basis over their estimated useful lives of less than one to twelve years. We review the carrying value of long-lived assets or asset groups, including property and equipment, to be used in operations whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, we would assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, we will estimate the fair value of the asset group using appropriate valuation methodologies which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset groups carrying amount and its estimated fair value. Assets held for sale, to the extent we have any, are reported at the lower of cost or fair value less costs to sell. Redeemable Noncontrolling Interests We have noncontrolling interests in majority owned entities, which are carried at fair value as the noncontrolling interests contain certain rights, whereby we may acquire and the minority shareholders may sell to us the additional shares of the companies. Changes in fair value of the shares for which the minority holders may sell to us are recorded to the noncontrolling interest and as charges or credits to retained earnings (or additional paid-in capital in the absence of retained earnings). Fair value determinations require high levels of judgment (“Level 3” on the fair value hierarchy) and are based on various valuation techniques, including market comparables and discounted cash flow projections. Income Taxes We record income taxes under the liability method. Deferred tax assets and liabilities reflect our estimation of the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for book and tax purposes. We determine deferred income taxes based on the differences in accounting methods and timing between financial statement and income tax reporting. Accordingly, we determine the deferred tax asset or liability for each temporary difference based on the enacted tax rates expected to be in effect when we realize the underlying items of income and expense. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward periods available to us for tax reporting purposes, as well as other relevant factors. We may establish a valuation allowance to reduce deferred tax assets to the amount we believe is more likely than not to be realized. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law, tax sharing agreements or variances between our actual and anticipated operating results, we make certain judgments and estimates. Therefore, actual income taxes could materially vary from these estimates. In November 2015, the FASB issued an ASU that simplified the presentation of deferred taxes by requiring all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. Under the previous practice, the requirement was to separate deferred taxes into current and noncurrent amounts on the balance sheet. The new standard does not affect the requirement to offset deferred tax assets and liabilities for each taxpaying component within a tax jurisdiction. We elected to early adopt for the current reporting period ending December 31, 2015 on a prospective basis. Other than the revised balance sheet presentation of deferred income tax assets and liabilities, the adoption of this standard did not have an effect on our consolidated financial statements. We account for uncertain tax positions based on a two-step process of evaluating recognition and measurement criteria. The first step assesses whether the tax position is more likely than not to be sustained upon examination by the tax authority, including resolution of any appeals or litigation, based on the technical merits of the position. If the tax position meets the more likely than not criteria, the portion of the tax benefit greater than 50% likely to be realized upon settlement with the tax authority is recognized in the financial statements. Presentation of Taxes in the Income Statement We present taxes that we collect from customers and remit to government authorities on a net basis in our consolidated statements of operations. Discontinued Operations As of January 1, 2015, we adopted the ASU amending the requirements for reporting discontinued operations, which may include a component of an entity or a group of components of an entity. The amendment limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations and financial results and it also requires expanded disclosures surrounding discontinued operations. Upon adoption, the standard impacted how we assess and report discontinued operations, including our divestiture of eLong during the second quarter of 2015 as disclosed below in Note 4 – Disposition of Business. On December 20, 2011, we completed the spin-off of TripAdvisor, which was accounted for as a discontinued operation. During 2013, we received an income tax refund of $14 million related to a tax benefit for extinguishment of debt, which was included within cash provided by discontinued operations in our consolidated statement of cash flows for the period. Derivative Instruments Derivative instruments are carried at fair value on our consolidated balance sheets. The fair values of the derivative financial instruments generally represent the estimated amounts we would expect to receive or pay upon termination of the contracts as of the reporting date. At December 31, 2015 and 2014, our derivative instruments primarily consisted of foreign currency forward contracts. We use foreign currency forward contracts to economically hedge certain merchant revenue exposures and in lieu of holding certain foreign currency cash for the purpose of economically hedging our foreign currency-denominated operating liabilities. Our goal in managing our foreign exchange risk is to reduce, to the extent practicable, our potential exposure to the changes that exchange rates might have on our earnings, cash flows and financial position. Our foreign currency forward contracts are typically short-term and, as they do not qualify for hedge accounting treatment, we classify the changes in their fair value in other, net. We do not hold or issue financial instruments for speculative or trading purposes. In June 2015, we issued Euro 650 million of registered senior unsecured notes that are due in June 2022 and bear interest at 2.5% (the “2.5% Notes”). The aggregate principal value of the 2.5% Notes is designated as a hedge of our net investment in certain Euro functional currency subsidiaries. The notes are measured at Euro to U.S. Dollar exchange rates at each balance sheet date and transaction gains or losses due to changes in rates are recorded in accumulated other comprehensive income (loss) (“OCI”). The Euro-denominated net assets of these subsidiaries are translated into U.S. Dollars at each balance sheet date, with effects of foreign currency changes also reported in accumulated OCI Since the notional amount of the recorded Euro-denominated debt is less than the notional amount of our net investment, we do not expect to incur any ineffectiveness on this hedge. Foreign Currency Translation and Transaction Gains and Losses Certain of our operations outside of the United States use the related local currency as their functional currency. We translate revenue and expense at average rates of exchange during the period. We translate assets and liabilities at the rates of exchange as of the consolidated balance sheet dates and include foreign currency translation gains and losses as a component of accumulated OCI. Due to the nature of our operations and our corporate structure, we also have subsidiaries that have significant transactions in foreign currencies other than their functional currency. We record transaction gains and losses in our consolidated statements of operations related to the recurring remeasurement and settlement of such transactions. To the extent practicable, we attempt to minimize this exposure by maintaining natural hedges between our current assets and current liabilities of similarly denominated foreign currencies. Additionally, as discussed above, we use foreign currency forward contracts to economically hedge certain merchant revenue exposures and in lieu of holding certain foreign currency cash for the purpose of economically hedging our foreign currency-denominated operating liabilities. Debt Issuance Costs We defer costs we incur to issue debt and amortize these costs to interest expense over the term of the debt or, when the debt can be redeemed at the option of the holders, over the term of the redemption option. Marketing Promotions We periodically provide incentive offers to our customers to encourage booking of travel products and services. Generally, our incentive offers are as follows: Current Discount Offers. Inducement Offers. Concession Offers. Loyalty and Points Based Offers. ® ® SM , the currency of Orbitz Rewards, on flights, hotels and vacation packages and instantly redeem those Orbucks on future bookings at various hotels worldwide. As travelers accumulate points towards free travel products, we record a liability for the estimated future cost of redemptions. We determine the future redemption obligation based on factors that require significant judgment including: (i) the estimated cost of travel products to be redeemed, and (ii) an estimated redemption rate based on the overall accumulation and usage of points towards free travel products, which is determined through current and historical trends as well as statistical modeling techniques. As of December 31, 2015 and 2014, we had a liability related to our loyalty programs of $364 million and $235 million included in accrued expenses and other current liabilities. Advertising Expense We incur advertising expense consisting of offline costs, including television and radio advertising, and online advertising expense to promote our brands. We expense the production costs associated with advertisements in the period in which the advertisement first takes place. We expense the costs of communicating the advertisement (e.g., television airtime) as incurred each time the advertisement is shown. For the years ended December 31, 2015, 2014 and 2013, our advertising expense was $2.1 billion, $1.6 billion and $1.2 billion. As of December 31, 2015 and 2014, we had $16 million and $24 million of prepaid marketing expenses included in prepaid expenses and other current assets. Stock-Based Compensation We measure and amortize the fair value of stock options and restricted stock units (“RSUs”) as follows: Stock Options. Restricted Stock Units. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive these awards, and subsequent events are not indicative of the reasonableness of our original estimates of fair value. In determining the estimated forfeiture rates for stock-based awards, we periodically conduct an assessment of the actual number of equity awards that have been forfeited to date as well as those expected to be forfeited in the future. We consider many factors when estimating expected forfeitures, including the type of award, the employee class and historical experience. The estimate of stock awards that will ultimately be forfeited requires significant judgment and to the extent that actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period such estimates are revised. Earnings Per Share We compute basic earnings per share by taking net income attributable to Expedia, Inc. available to common stockholders divided by the weighted average number of common and Class B common shares outstanding during the period excluding restricted stock and stock held in escrow. Diluted earnings per share include the potential dilution that could occur from stock-based awards and other stock-based commitments using the treasury stock or the as if converted methods, as applicable. For additional information on how we compute earnings per share, see Note 14 — Earnings Per Share. Fair Value Recognition, Measurement and Disclosure The carrying amounts of cash and cash equivalents and restricted cash and cash equivalents reported on our consolidated balance sheets approximate fair value as we maintain them with various high-quality financial institutions. The accounts receivable are short-term in nature and are generally settled shortly after the sale. We disclose the fair value of our financial instruments based on the fair value hierarchy using the following three categories: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Certain Risks and Concentrations Our business is subject to certain risks and concentrations including dependence on relationships with travel suppliers, primarily airlines and hotels, dependence on third-party technology providers, exposure to risks associated with online commerce security and payment related fraud. We also rely on global distribution system partners and third-party service providers for certain fulfillment services . Financial instruments, which potentially subject us to concentration of credit risk, consist primarily of cash and cash equivalents and corporate debt securities. We maintain some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. Our cash and cash equivalents are primarily composed of prime institutional money market funds as well as bank (both interest and non-interest bearing) account balances denominated in U.S. dollars, euros, Australian dollar, British pound sterling, Canadian dollar and Japanese yen. Contingent Liabilities We have a number of regulatory and legal matters outstanding, as discussed further in Note 17 —Commitments and Contingencies. Periodically, we review the status of all significant outstanding matters to assess the potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated statements of operations. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred an |
Acquisitions and Other Investme
Acquisitions and Other Investments | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions and Other Investments | NOTE 3 — Acquisitions and Other Investments 2015 Acquisition and Other Investment Activity HomeAway Acquisition. Each outstanding share of common stock of HomeAway immediately prior to the acquisition was exchanged for $10.15 in cash and 0.2065 of a share of Expedia common stock, with cash paid in lieu of fractional shares. The preliminary aggregate purchase consideration for HomeAway is as follows (in thousands): Fair value of shares of Expedia common stock issued to HomeAway stockholders and equity award holders $ 2,515,755 Cash consideration paid to HomeAway stockholders and equity award holders 1,027,061 Replacement restricted stock units and stock options attributable to pre-acquisition service 19,513 Total purchase consideration $ 3,562,329 The fair value of common stock shares issued was based on the closing price of Expedia’s common stock at December 14, 2015 and included the fair value of shares of Expedia common stock issued to (i) HomeAway stockholders based on approximately 97 million HomeAway shares outstanding as of December 14, 2015 and (ii) holders of equity awards vested as of December 14, 2015. Approximately 20 million shares of Expedia common stock were issued in connection with the acquisition of HomeAway. Purchase consideration also included $20 million for the portion of certain unvested employee options and restricted stock unit awards of HomeAway attributable to pre-combination service, which were replaced with Expedia awards in conjunction with the acquisition and measured at fair value on the acquisition date. The fair value for the portion of the awards attributable to post-combination service was $106 million, net of estimated forfeitures. Due to the limited amount of time since the acquisition of HomeAway, the purchase price allocation was based on a preliminary valuation of the assets acquired and liabilities assumed and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed become available. The final allocation may include changes to the acquisition date fair value of intangible assets, goodwill, deferred taxes, deferred revenue as well as operating assets and liabilities. The following summarizes the preliminary allocation of the purchase price for HomeAway, in thousands: Cash $ 900,281 Other current assets (1) 54,665 Long-term assets 81,564 Intangible assets with definite lives (2) 555,600 Intangible assets with indefinite lives (3) 196,900 Goodwill 2,602,712 Deferred revenue (182,978 ) Other current liabilities (104,316 ) Debt (402,500 ) Other long-term liabilities (31,122 ) Deferred tax liabilities, net (108,477 ) Total $ 3,562,329 (1) Gross accounts receivable was $25 million, of which $1 million was estimated to be uncollectible. (2) Acquired definite-lived intangible assets primarily consist of supplier relationships, customer relationships and developed technology assets with average lives ranging from less than one to twelve years and an estimated combined weighted average useful life of 5.73 years. (3) Acquired indefinite-lived intangible assets primarily consist of trade names and trademarks. The goodwill of $2.6 billion is primarily attributable to assembled workforce and operating synergies as it relates to the shift to a transaction model. The goodwill has been allocated to the new HomeAway reportable segment and is not expected to be deductible for tax purposes. We assumed approximately $403 million of 0.125% Convertible Senior Notes due 2019 (the “Convertible Notes”) in connection with the HomeAway acquisition. However, following the consummation of the HomeAway acquisition, we subsequently delivered a notice to holders of the Convertible Notes, as required per the terms of the Convertible Notes indenture, to which each holder of the Convertible Notes had the right to (i) require the Company to repurchase its Convertible Notes for cash at a price equal to 100% of the principal amount of such notes plus accrued and unpaid interest or (ii) convert its Convertible Notes, at a specified conversion rate into HomeAway common stock (which, following consummation of the HomeAway acquisition, represented the right to receive the transaction consideration) or (iii) allow the Convertible Notes to remain outstanding for the remaining term. As a result, the majority of the Convertible Notes, or $377 million, were repurchased during the January 2016, and we have therefore determined the fair value of the Convertible Notes on the date of acquisition to be equal to the principal amount of the Convertible Notes. In connection with the issuance of the Convertible Notes, HomeAway also sold warrants (the “Warrants”) to acquire approximately 7.7 million shares of HomeAway common stock. As a result of the merger, the Warrant holders had the right to terminate the Warrants at fair value as determined in a commercially reasonable manner. A portion of such Warrants were settled on December 16, 2015 for $23 million in cash, with the $8 million remainder settled in January 2016. Both the Convertible Notes and the Warrants outstanding as of December 31, 2015 were included in accrued expenses and other current liabilities. HomeAway was consolidated into our financial statements starting on the acquisition date and we have recognized a related $20 million in revenue and $14 million in operating losses, including fees related to the acquisition that are not allocated to the segment, for 2015. In connection with the acquisition, HomeAway incurred fees paid to financial advisors totaling approximately $33 million, which were contingent upon closing and were excluded from both Expedia’s consolidated statement of operations and the pre-combination financial statements of HomeAway. Orbitz Acquisition. The purchase consideration consisted primarily of $1.4 billion in cash, or $12 per share for all shares of Orbitz common stock outstanding as of the purchase date, as well as the settlement of $432 million of pre-existing Orbitz debt at the closing of the acquisition. Purchase consideration also included $17 million for the portion of certain unvested employee restricted stock unit awards of Orbitz attributable to pre-combination service, which were replaced with Expedia awards in conjunction with the acquisition and measured at fair value on the acquisition date. The fair value for the portion of the awards attributable to post-combination service was $49 million, net of estimated forfeitures, of which $34 million was recognized during 2015. The purchase price allocation was based on a preliminary valuation of the assets acquired and liabilities assumed and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed become available. The final allocation may include changes to the acquisition date fair value of intangible assets, goodwill, deferred taxes, deferred revenue, accounts receivable, loyalty liabilities and other current liabilities as well as other items. The following summarizes the preliminary allocation of the purchase price for Orbitz, in thousands: Cash consideration for shares $ 1,362,362 Settlement of Orbitz debt 432,231 Replacement restricted stock units attributable to pre-acquisition service 16,717 Other consideration 2,214 Total purchase consideration $ 1,813,524 Cash $ 194,515 Accounts receivable, net (1) 147,517 Other current assets 33,728 Long-term assets 115,163 Intangible assets with definite lives (2) 515,384 Intangible assets with indefinite lives (3) 166,800 Goodwill 1,443,521 Current liabilities (635,209 ) Other long-term liabilites (54,627 ) Deferred tax liabilities, net (113,268 ) Total $ 1,813,524 (1) Gross accounts receivable was $157 million, of which $9 million was estimated to be uncollectible. (2) Acquired definite-lived intangible assets primarily consist of customer relationship assets, developed technology assets and partner relationship assets with estimated useful lives ranging from less than one to ten years with a weighted average life of 6.03 years. (3) Acquired indefinite-lived intangible assets primarily consist of trade names and trademarks. The goodwill of $1.4 billion is primarily attributable to operating synergies. The goodwill has been allocated to the Core Online Travel Agencies (“Core OTA”) segment and is not expected to be deductible for tax purposes. Orbitz was consolidated into our financial statements starting on the acquisition date and we have recognized a related $196 million in revenue and $163 million in operating losses, including restructuring charges of $92 million as well as fees related to the acquisition that are not allocated to the Core OTA segment, for 2015. In connection with the merger, Orbitz incurred fees paid to financial advisors totaling approximately $25 million, which were contingent upon closing and were excluded from both Expedia’s consolidated statement of operations and the pre-combination financial statements of Orbitz. In addition, Orbitz offered certain employees a continuity incentive of approximately $30 million for continuing employment through the closing date and beyond. The first half of the incentives were contingent and paid upon the closing of the acquisition and related to service provided in the pre-acquisition period. The second half of the incentive is payable 180 days after the closing (or upon involuntary termination, if applicable) and is being expensed to restructuring and related reorganization charges over the applicable service period. For information related to restructuring plans as a result of the merger, see Note 15 — Restructuring and Related Reorganization Charges. For information related to claims, proceedings and inquiries related to hotel occupancy and other taxes for Orbitz, see Note 17 — Commitments and Contingencies. Combined Pro forma Information (Unaudited). Years Ended December 31, 2015 2014 Revenue $ 7,838,863 $ 7,110,688 Net income attributable to Expedia, Inc. 816,634 301,331 The pro forma results are not necessarily indicative of our consolidated results of operations in future periods or the results that actually would have been realized had the companies operated on a combined basis during the periods presented. The pro forma results include adjustments primarily related to amortization of acquired intangibles, depreciation of fixed assets, certain accounting policy alignments as well as direct and incremental acquisition related costs reflected in the historical financial statements. The preliminary purchase price allocation was used to prepare the pro forma adjustments. The final allocation could differ materially from the preliminary allocation used in the pro forma adjustments. Other 2015 Acquisitions. On January 23, 2015, we acquired the Travelocity brand and other associated assets from Sabre for $280 million in cash consideration. As a result of the asset acquisition, the strategic marketing and other related agreements entered into in 2013 were terminated. Under the terms of the strategic marketing agreement, Travelocity was compensated through a performance-based marketing fee related to bookings powered by Expedia made through Travelocity-branded websites in the United States and Canada. Revenue earned on the Travelocity websites was recorded as a component of Expedia’s net revenue in accordance with our revenue recognition policies and the related marketing fee paid to Travelocity was recorded as selling and marketing expense. In conjunction with the acquisition, we did not acquire any cash or working capital assets or assume any liabilities. In addition, we completed three other acquisitions during 2015 for a total purchase price of $9 million. The following summarizes the allocation of the purchase price for the 2015 acquisitions, excluding HomeAway and Orbitz, in thousands: Goodwill $ 196,431 Intangible assets with indefinite lives 163,400 Intangible assets with definite lives (1) 146,126 Net assets and non-controlling interests acquired (2) (23,366 ) Deferred tax liabilities (7,910 ) Total (3) $ 474,681 (1) Acquired definite-lived intangible assets primarily consist of customer relationship, reacquired right and supplier relationship assets and have estimated useful lives of between four and ten years with a weighted average life of 5.8 years. (2) Includes cash acquired of $41 million. (3) The total purchase price includes noncash consideration of $99 million related to an equity method investment, which is currently consolidated upon our acquisition of a controlling interest, as discussed above, with the remainder paid in cash during the period. The goodwill of $196 million is primarily attributable to operating synergies and $82 million is expected to be deductible for tax purposes with the remainder not expected to be deductible. Business combination accounting is preliminary and subject to revision while we accumulate all relevant information regarding the fair values of the net assets acquired. The results of operations of the other acquired companies have been included in our consolidated results from the transaction closing dates forward. Pro forma results of operations have not been presented as such pro forma financial information would not be materially different from historical results. Other Investments. Acquisition-related Costs. 2014 Acquisition Activity In November 2014, we acquired Wotif Group, an Australian-based online travel company. The total consideration received by Wotif Group shareholders of $703 million Australian dollars (“A$”) or A$3.30 per share (approximately $612 million or $2.87 per share based on November 13, 2014 exchange rates) was comprised of A$51 million special dividend distributed by the Wotif Group to its shareholders prior to the acquisition by Expedia, Inc. and A$652 million (or approximately $568 million) in cash from Expedia, Inc. The Wotif Group adds to our collection of travel’s most trusted brands and enhances our supply in the Asia-Pacific region, while allowing Expedia to expose the Wotif Group to our world-class technology and its customers to our extensive global supply. The aggregate purchase price consideration of $568 million was allocated to the fair value of assets acquired and liabilities assumed as follows, in thousands: Goodwill $ 350,093 Intangible assets with indefinite lives 125,762 Intangible assets with definite lives (1) 138,292 Net liabilities (2) (43,429 ) Deferred tax liabilities (2,908 ) Total $ 567,810 (1) Acquired definite-lived intangible assets primarily consist of supplier contracts and customer relationships and have estimated useful lives of between less than one year and 10 years with a weighted average life of 7.8 years. (2) Includes cash acquired of $36 million. The goodwill of $350 million is primarily attributed to assembled workforce and operating synergies. The goodwill has been allocated to the Core OTA segment and is expected to be deductible for tax purposes. Acquisition-related costs were expensed as incurred within general and administrative expenses and were approximately $7 million. During 2014, we completed three other acquisitions, including a leading online car rental reservation company in Europe, for total consideration of $85 million, which included cash paid of $77 million and existing equity interest of $7 million. As a result of these acquisitions, we acquired net liabilities of $19 million, including cash of $48 million, as well as recorded deferred tax liabilities of $17 million, $70 million in goodwill and $51 million of intangible assets with definite lives with a weighted average amortization life of 6.1 years. In conjunction with our acquisition of a consolidating interest in one of the companies, we remeasured our previously held equity interest to fair value at the acquisition date and recognized a gain of $3 million in other, net during the period. The results of operations of the acquired companies, including the Wotif Group, have been included in our consolidated results from the transaction closing dates forward; the effect on consolidated revenue and operating income during 2014 was not significant. Pro forma results of operations have not been presented as such pro forma financial information would not be materially different from historical results. 2013 Acquisition Activity During 2013, we completed the purchase of a 63% equity position (61.6% on a fully diluted basis) in trivago GmbH, a leading hotel metasearch company based in Germany. trivago was acquired due to the quality and strength of its product and brand and our belief that the company will continue to scale as it expands globally. In conjunction with the acquisition, we paid €434 million in cash, or approximately $564 million based on March 8, 2013 exchange rates, of which $554 million was paid to the shareholders of trivago and $10 million was used to settle a portion of an employee compensation plan. In addition, we agreed to issue 875,200 shares of Expedia, Inc. common stock to certain employee stockholders in five equal increments on or about each of the first through fifth anniversaries of the acquisition. The number of shares of Expedia common stock was calculated based on the aggregate value of €43 million using a thirty-day trailing average of closing trading prices and exchange rates prior to acquisition. During the first quarter of 2014 and 2015, we issued the first two increments of 175,040 shares of Expedia, Inc. common stock. Also in conjunction with the acquisition, we replaced certain employee stock-based awards of the acquiree, which related to pre-combination service, for an acquisition date fair value of $15 million. As a result of the acquisition, we expensed $66 million to acquisition-related and other on the consolidated statements of operations during 2013, which included approximately $57 million in stock-based compensation related to the issuance of the 875,200 shares of common stock as the issuance was determined separate from the business combination and was not contingent upon any future service or other certain event except the passage of time as well as approximately $10 million for the amount paid to settle a portion of the employee compensation plan of trivago, which was considered separate from the business combination. The stock-based compensation expense was measured using the closing price of Expedia, Inc. common stock as of the acquisition date multiplied by the number of shares to be issued. Acquisition-related costs were expensed as incurred and were not significant. The aggregate purchase price consideration was $570 million, which included the cash paid to shareholders of trivago of $554 million as well as $15 million for replaced employee stock-based awards of the acquiree. The purchase price was allocated to the fair value of assets acquired and liabilities assumed as follows, in thousands: Goodwill $ 633,436 Intangible assets with indefinite lives 220,416 Intangible assets with definite lives (1) 136,281 Net assets (2) 19,064 Deferred tax liabilities (111,379 ) Redeemable noncontrolling interest (343,984 ) Total $ 553,834 (1) Acquired definite-lived intangible assets primarily consist of technology, partner relationship and non-compete agreement assets and have estimated useful lives of between three and seven years with a weighted average life of 3.7 years. (2) Includes cash acquired of $13 million. The value of the replaced employee stock-based awards of the acquiree was included in the purchase price allocation with a corresponding offset to redeemable noncontrolling interest, because the replacement awards were issued in subsidiary stock. The goodwill of $633 million is primarily attributed to assembled workforce, operating synergies and potential expansion into other global markets. The goodwill has been allocated to the trivago segment and is not expected to be deductible for tax purposes. The fair value of the 37% noncontrolling interest was estimated to be $344 million at the time of acquisition based on the fair value per share, excluding the control premium. The control premium was derived directly based on the additional consideration paid to certain shareholders in order to obtain control. The additional consideration was determined to be the best estimate to represent the control premium as it was a premium paid only to the controlling shareholders. In addition, the purchase agreement contains certain put/call rights whereby we may acquire and the minority shareholders of trivago may sell to us up to 50% and 100% of the minority shares of the company at fair value during two windows, the first of which opens in the first quarter of 2016 and the second opens in 2018. As the noncontrolling interest is redeemable at the option of the minority holders, we classified the balance as redeemable noncontrolling interest with future changes in the fair value above the initial basis recorded as charges or credits to retained earnings (or additional paid-in capital in absence of retained earnings). The put/call arrangement includes certain rollover provisions that, if triggered, would cause the minority shares to be treated as though they become mandatorily redeemable, and to be reclassified as a liability at the time such trigger becomes certain to occur. Our redeemable noncontrolling interest balance related to trivago was $654 million as of December 31, 2015, which represents our best estimate of fair value. The final redemption amount could materially differ from this estimate based on the final negotiations. For further information on redeemable noncontrolling interest, see Note 12 — Redeemable Noncontrolling Interests. trivago’s results of operations have been included in our consolidated results from the transaction closing date forward. Pro forma results of operations have not been presented as such pro forma financial information would not be materially different from historical results. During 2013, the acquisition accounted for approximately 4% of consolidated revenue for the year. |
Disposition of Business
Disposition of Business | 12 Months Ended |
Dec. 31, 2015 | |
Disposition of Business | NOTE 4 — Disposition of Business On May 22, 2015, we completed the sale of our 62.4% ownership stake in eLong, Inc., which was a separate reportable segment, for approximately $671 million (or $666 million net of costs to sell and other transaction expenses) to several purchasers, including Ctrip.com International, Ltd. Of the total sales price, approximately $67 million was remitted directly to escrow for estimated tax obligations, and is recorded in long-term investments and other assets on our consolidated balance sheet as of December 31, 2015 and represents a noncash item in our consolidated statement of cash flows. As a result of the sale, we recognized a pre-tax gain of $509 million ($395 million after tax) during 2015 included in gain on sale of business in our consolidated statement of operations. The following table presents the carrying amounts of our eLong business immediately preceding the disposition on May 22, 2015, in thousands: Total current assets (1) $ 350,196 Total long-term assets 137,709 Total assets divested $ 487,905 Total current liabilities $ 187,296 Total long-term liabilities 5,782 Total liabilities divested $ 193,078 Components of accumulated other comprehensive income divested 45,259 Non-redeemable noncontrolling interest divested 92,550 Net carrying value divested $ 157,018 (1) Includes cash and cash equivalents of approximately $74 million. We evaluated the disposition of eLong and determined it did not meet the “major effect” criteria for classification as a discontinued operation largely due to how recently it began having material impacts to our quarterly consolidated operating and net income. However, we determined that the disposition does represent an individually significant component of our business. The following table presents certain amounts related to eLong in our consolidated results of operations through its disposal on May 22, 2015: Year Ended December 31, 2015 2014 2013 (In thousands) Operating loss (1) $ (85,536 ) $ (50,757 ) $ (28,857 ) Income (loss) before taxes (2) 438,843 (40,535 ) (17,031 ) Income (loss) before taxes attributable to Expedia, Inc. (2) 465,400 (25,078 ) (7,669 ) Net income (loss) attributable to Expedia, Inc. (3) 349,183 (27,119 ) (17,518 ) (1) Includes stock-based compensation and amortization of intangible assets of approximately $20 million, $17 million and $11 million for 2015, 2014 and 2013, which are included within Corporate & Eliminations in Note 19 – Segment Information. (2) The year ended December 31, 2015 includes the pre-tax gain of $509 million related to the gain on sale. (3) The year ended December 31, 2015 includes the after-tax gain of $395 million related to the gain on sale. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements | NOTE 5 — Fair Value Measurements Financial assets measured at fair value on a recurring basis as of December 31, 2015 are classified using the fair value hierarchy in the table below: Total Level 1 Level 2 (In thousands) Assets Cash equivalents: Money market funds $ 218,340 $ 218,340 $ — Time deposits 29,126 — 29,126 Derivatives: Foreign currency forward contracts 8,045 — 8,045 Investments: Corporate debt securities 98,403 — 98,403 Total assets $ 353,914 $ 218,340 $ 135,574 Financial assets measured at fair value on a recurring basis as of December 31, 2014 are classified using the fair value hierarchy in the table below: Total Level 1 Level 2 (In thousands) Assets Cash equivalents: Money market funds $ 161,059 $ 161,059 $ — Time deposits 298,968 — 298,968 Restricted cash: Time deposits 19,980 — 19,980 Derivatives: Foreign currency forward contracts 9,176 — 9,176 Investments: Time deposits 312,762 — 312,762 Corporate debt securities 142,575 — 142,575 Total assets $ 944,520 $ 161,059 $ 783,461 We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash equivalents and investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, a Level 2 input. As of December 31, 2015 and 2014, our cash and cash equivalents consisted primarily of prime institutional money market funds with maturities of three months or less, time deposits as well as bank account balances. We invest in investment grade corporate debt securities, all of which are classified as available for sale. As of December 31, 2015, we had $34 million of short-term and $65 million of long-term available for sale investments and the amortized cost basis of the investments approximated their fair value with both gross unrealized gains and gross unrealized losses of less than $1 million. As of December 31, 2014, we had $43 million of short-term and $100 million of long-term available for sale investments and the amortized cost basis of the investments approximated their fair value with both gross unrealized gains and gross unrealized losses of less than $1 million. We also hold time deposit investments with financial institutions. Time deposits with original maturities of less than three months are classified as cash equivalents and those with remaining maturities of less than one year are classified within short-term investments. We use foreign currency forward contracts to economically hedge certain merchant revenue exposures and in lieu of holding certain foreign currency cash for the purpose of economically hedging our foreign currency-denominated operating liabilities. As of December 31, 2015, we were party to outstanding forward contracts hedging our liability exposures with a total net notional value of $1.9 billion. We had a net forward asset of $8 million and $9 million recorded in prepaid expenses and other current assets as of December 31, 2015 and 2014. We recorded $46 million, $10 million and $47 million in net gains (losses) from foreign currency forward contracts in 2015, 2014 and 2013. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment, Net | NOTE 6 — Property and Equipment, Net Our property and equipment consists of the following: December 31, 2015 2014 (In thousands) Capitalized software development $ 1,220,822 $ 1,041,924 Computer equipment 485,074 313,738 Furniture and other equipment 65,939 42,110 Buildings and leasehold improvements 199,604 135,372 Land 130,725 — 2,102,164 1,533,144 Less: accumulated depreciation (1,201,744 ) (1,011,085 ) Projects in progress 163,839 31,067 Property and equipment, net $ 1,064,259 $ 553,126 As of December 31, 2015 and 2014, our recorded capitalized software development costs, net of accumulated amortization, were $484 million and $386 million. For the years ended December 31, 2015, 2014 and 2013, we recorded amortization of capitalized software development costs of $230 million, $185 million and $139 million, most of which is included in technology and content expenses. On April 30, 2015, we acquired our future corporate headquarters for $229 million, consisting of multiple office and lab buildings located in Seattle, Washington. The acquired building assets are included in construction in process and will begin depreciating when the costs incurred related to the build out of the headquarters are complete and the building assets are ready for their intended use. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets, Net | NOTE 7 — Goodwill and Intangible Assets, Net The following table presents our goodwill and intangible assets as of December 31, 2015 and 2014: December 31, 2015 2014 (In thousands) Goodwill $ 7,992,941 $ 3,955,901 Intangible assets with indefinite lives 1,459,854 976,638 Intangible assets with definite lives, net 1,334,100 313,449 $ 10,786,895 $ 5,245,988 Impairment Assessments. Goodwill. Core OTA trivago Egencia HomeAway eLong Total (In thousands) Balance as of January 1, 2014 $ 2,781,296 $ 633,436 $ 194,651 $ — $ 54,291 $ 3,663,674 Additions 402,752 1,045 — — 14,611 418,408 Foreign exchange translation (50,553 ) (41,062 ) (38,327 ) — 3,761 (126,181 ) Balance as of December 31, 2014 3,133,495 593,419 156,324 — 72,663 3,955,901 Additions 1,633,711 6,241 — 2,602,712 469 4,243,133 Deductions — — — — (72,693 ) (72,693 ) Foreign exchange translation (49,835 ) (60,083 ) (23,043 ) — (439 ) (133,400 ) Balance as of December 31, 2015 $ 4,717,371 $ 539,577 $ 133,281 $ 2,602,712 $ — $ 7,992,941 In 2015 and 2014, the additions to goodwill relate primarily to our acquisitions as described in Note 3 — Acquisitions and Other Investments. As of December 31, 2015 and 2014, accumulated goodwill impairment losses in total were $2.5 billion, which was associated with our Core OTA segment. Indefinite-lived Intangible Assets. Intangible Assets with Definite Lives. December 31, 2015 December 31, 2014 Cost Accumulated Net Cost Accumulated Net (In thousands) Supplier relationships $ 655,414 $ (223,666 ) $ 431,748 $ 357,022 $ (200,257 ) $ 156,765 Technology 490,584 (258,261 ) 232,323 257,045 (216,841 ) 40,204 Customer relationships 613,277 (73,248 ) 540,029 110,302 (29,225 ) 81,077 Domain names 115,102 (34,758 ) 80,344 51,592 (28,630 ) 22,962 Other 446,788 (397,132 ) 49,656 404,441 (392,000 ) 12,441 Total $ 2,321,165 $ (987,065 ) $ 1,334,100 $ 1,180,402 $ (866,953 ) $ 313,449 Amortization expense was $164 million, $80 million and $72 million for the years ended December 31, 2015, 2014 and 2013. The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2015, assuming no subsequent impairment of the underlying assets, is as follows, in thousands: 2016 $ 317,909 2017 260,127 2018 247,729 2019 147,768 2020 113,183 2021 and thereafter 247,384 Total $ 1,334,100 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt | NOTE 8 — Debt The following table sets forth our outstanding debt: December 31, 2015 2014 (In thousands) 7.456% senior notes due 2018 $ 500,000 $ 500,000 5.95% senior notes due 2020, net of discount 749,561 749,485 4.5% senior notes due 2024, net of discount 497,534 497,302 2.5% (€650 million) senior notes due 2022, net of discount 707,653 — 5.0% senior notes due 2026, net of discount 746,529 — Long-term debt (1) $ 3,201,277 $ 1,746,787 (1) Excludes debt acquired in the HomeAway acquisition included within accrued expenses and other current liabilities as of December 31, 2015. For further information, see Note 3 — Acquisitions and Other Investments. Long-term Debt Our $500 million in registered senior unsecured notes outstanding at December 31, 2015 are due in August 2018 and bear interest at 7.456% (the “7.456% Notes”). Interest is payable semi-annually in February and August of each year. At any time Expedia may redeem the 7.456% Notes at a redemption price of 100% of the principal plus accrued interest, plus a “make-whole” premium, in whole or in part. Our $750 million in registered senior unsecured notes outstanding at December 31, 2015 are due in August 2020 and bear interest at 5.95% (the “5.95% Notes”). The 5.95% Notes were issued at 99.893% of par resulting in a discount, which is being amortized over their life. Interest is payable semi-annually in February and August of each year. We may redeem the 5.95% Notes at a redemption price of 100% of the principal plus accrued interest, plus a “make-whole” premium, in whole or in part. Our $500 million in registered senior unsecured notes outstanding at December 31, 2015 are due in August 2024 and bear interest at 4.5% (the “4.5% Notes”). The 4.5% Notes were issued at 99.444% of par resulting in a discount, which is being amortized over their life. Interest is payable semi-annually in February and August of each year, beginning February 15, 2015. We may redeem the 4.5% Notes at our option at any time in whole or from time to time in part. If we elect to redeem the 4.5% Notes prior to May 15, 2024, we may redeem them at a redemption price of 100% of the principal plus accrued interest, plus a “make-whole” premium. If we elect to redeem the 4.5% Notes on or after May 15, 2024, we may redeem them at a redemption price of 100% of the principal plus accrued interest. In June 2015, we issued Euro 650 million of registered senior unsecured notes that are due in June 2022 and bear interest at 2.5% (the “2.5% Notes”). The 2.5% Notes were issued at 99.525% of par resulting in a discount, which is being amortized over their life. Interest is payable annually in arrears in June of each year, beginning June 3, 2016. We may redeem the 2.5% Notes at our option, at whole or in part, at any time or from time to time. If we elect to redeem the 2.5% Notes prior to March 3, 2022, we may redeem them at a specified “make-whole” premium. If we elect to redeem the 2.5% Notes on or after March 3, 2022, we may redeem them at a redemption price of 100% of the principal plus accrued and unpaid interest. Subject to certain limited exceptions, all payments of interest and principal for the 2.5% Notes will be made in Euros. In December 2015, we privately placed $750 million of senior unsecured notes that are due in February 2026 and bear interest at 5.0% (the “5.0% Notes”). The 5.0% Notes were issued at 99.535% of par resulting in a discount, which is being amortized over their life. Interest is payable semi-annually in arrears in February and August of each year, beginning August 15, 2016. We may redeem the 5.0% Notes at our option at any time in whole or from time to time in part. If we elect to redeem the 5.0% Notes prior to November 12, 2025, we may redeem them at a redemption price of 100% of the principal plus accrued interest, plus a “make-whole” premium. If we elect to redeem the 5.0% Notes on or after November 12, 2025, we may redeem them at a redemption price of 100% of the principal plus accrued interest. We also entered into a registrations rights agreement under which we agreed to use commercially reasonable best efforts intend to file a registration statement to permit the exchange of the 5.0% Notes for registered notes having the same financial terms and covenants as the privately placed notes within 365 days of the issuance of the 5.0% Notes. If we fail to satisfy certain of its obligations under the registration rights agreement, we will be required to pay additional interest of 0.25% per annum to the holders of the 5.0% Notes until such registrations right default is cured. The 7.456%, 5.95%, 4.5%, 2.5% and 5.0% Notes (collectively the “Notes”) are senior unsecured obligations issued by Expedia and guaranteed by certain domestic Expedia subsidiaries. The Notes rank equally in right of payment with all of our existing and future unsecured and unsubordinated obligations of Expedia and the guarantor subsidiaries. For further information, see Note 22 — Guarantor and Non-Guarantor Supplemental Financial Information. In addition, the Notes include covenants that limit our ability to (i) create certain liens, (ii) enter into sale/leaseback transactions and (iii) merge or consolidate with or into another entity or transfer substantially all of our assets. Accrued interest related to the Notes was $52 million and $39 million as of December 31, 2015 and 2014. The 5.95%, 4.5%, 2.5% and 5.0% Notes are redeemable in whole or in part, at the option of the holders thereof, upon the occurrence of certain change of control triggering events at a purchase price in cash equal to 101% of the principal plus accrued and unpaid interest. The approximate fair value of 7.456% Notes was $555 million and $581 million as of December 31, 2015 and 2014. The approximate fair value of 5.95% Notes was $827 million and $840 million as of December 31, 2015 and 2014. The approximate fair value of 4.5% Notes was $487 million and $504 million as of December 31, 2015 and 2014. The approximate fair value of 2.5% Notes was Euro 644 million ($705 million) as of December 31, 2015. The approximate fair value of 5.0% Notes was $750 million as of December 31, 2015.These fair values were based on quoted market prices in less active markets (Level 2 inputs). Credit Facility As of December 31, 2015, Expedia, Inc. maintained a $1 billion unsecured revolving credit facility with a group of lenders that had a September 2019 maturity date, which was unconditionally guaranteed by certain domestic Expedia subsidiaries that are the same as under the Notes. As of December 31, 2015 and 2014, we had no revolving credit facility borrowings outstanding. The amount of stand-by letters of credit (“LOCs”) issued under the facility reduces the credit amount available. As of December 31, 2015 and 2014, there was $29 million and $15 million of outstanding stand-by LOCs issued under the facility. The facility contained various restrictive covenants, including a maximum permissible leverage ratio and a minimum permissible interest coverage ratio, and interest payable under the facility was based on the Company’s credit ratings. As of December 31, 2015, the maximum permissible leverage ratio and the minimum interest coverage were both 3.25 to 1.00, the applicable interest rate on drawn amounts was LIBOR plus 150 basis points and the commitment fee on undrawn amounts was 20 basis points. In February 2016, we entered into an amendment to the revolving credit facility that, among other things, increased the aggregate commitments under the facility to $1.5 billion, extended the maturity date to February 2021, reduced the currently applicable interest rate on drawn amounts by 12.5 basis points to LIBOR plus 137.5 basis points and the commitment fee on undrawn amounts by 2.5 basis points to 17.5 basis points, increased the maximum permissible leverage ratio to 3.75 to 1.00 and reduced the minimum permissible interest coverage ratio to 3.00 to 1.00. In addition, one of our international subsidiaries maintains a Euro 50 million uncommitted credit facility, which is guaranteed by Expedia, Inc., that may be terminated at any time by the lender. As of December 31, 2015, we had Euro 20 million in borrowings outstanding included in accrued expenses and other current liabilities on the consolidated balance sheet. Another of our international subsidiaries maintains a $5.6 million uncommitted credit facility, which is guaranteed by Expedia, Inc., that may be terminated at any time by the lender. As of December 31, 2015, we had approximately $5 million in borrowings outstanding included in accrued expenses and other current liabilities on the consolidated balance sheet. As of December 31, 2014, we had no borrowings outstanding under either of these international credit facilities. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans | NOTE 9 — Employee Benefit Plans Our U.S. employees are generally eligible to participate in a retirement and savings plan that qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 50% of their pretax salary, but not more than statutory limits. We contribute fifty cents for each dollar a participant contributes in this plan, with a maximum contribution of 3% of a participant’s earnings. Our contribution vests with the employee after the employee completes two years of service. Participating employees have the option to invest in our common stock, but there is no requirement for participating employees to invest their contribution or our matching contribution in our common stock. We also have various defined contribution plans for our international employees. Our contributions to these benefit plans were $41 million, $36 million and $28 million for the years ended December 31, 2015, 2014 and 2013. |
Stock-Based Awards and Other Eq
Stock-Based Awards and Other Equity Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Awards and Other Equity Instruments | NOTE 10 — Stock-Based Awards and Other Equity Instruments Pursuant to the Amended and Restated Expedia, Inc. 2005 Stock and Annual Incentive Plan, we may grant restricted stock, restricted stock awards, RSUs, stock options and other stock-based awards to directors, officers, employees and consultants. As of December 31, 2015, we had approximately 10 million shares of common stock reserved for new stock-based awards under the 2005 Stock and Annual Incentive Plan. We issue new shares to satisfy the exercise or release of stock-based awards. The following table presents a summary of our stock option activity: Options Weighted Average Remaining Aggregate (In thousands) (In years) (In thousands) Balance as of January 1, 2013 15,236 $ 25.24 Granted 4,016 65.29 Exercised (2,730 ) 18.10 Cancelled (1,095 ) 37.87 Balance as of December 31, 2013 15,427 36.03 Granted 4,113 78.70 Exercised (3,804 ) 25.66 Cancelled (1,301 ) 53.69 Balance as of December 31, 2014 14,435 49.33 Granted 7,572 94.13 Exercised (4,201 ) 34.57 Cancelled (751 ) 74.06 Balance as of December 31, 2015 17,055 71.77 4.9 $ 896,377 Exercisable as of December 31, 2015 4,880 42.32 3.2 400,120 Vested and expected to vest after December 31, 2015 15,980 70.70 4.9 856,574 The aggregate intrinsic value of outstanding options shown in the stock option activity table above represents the total pretax intrinsic value at December 31, 2015, based on our closing stock price of $124.30 as of the last trading date in 2015. The total intrinsic value of stock options exercised was $314 million, $208 million and $117 million for the years ended December 31, 2015, 2014 and 2013. Included within options granted for 2015 are 2.7 million options awarded to our Chief Executive Officer with his entry into a new five-year employment agreement, of which 1.1 million options are subject to a stock price performance goal. During the three years ended December 31, 2015, 2014 and 2013, we awarded stock options as our primary form of stock-based compensation. The fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 were estimated at the date of grant using appropriate valuation techniques, including the Black-Scholes and Monte Carlo option-pricing models, assuming the following weighted average assumptions: 2015 2014 2013 Risk-free interest rate 1.19 % 1.13 % 0.71 % Expected volatility 41.48 % 42.97 % 44.81 % Expected life (in years) 4.06 4.04 4.07 Dividend yield 0.78 % 0.76 % 0.80 % Weighted-average estimated fair value of options granted during the year $ 30.56 $ 25.80 $ 21.96 The following table presents a summary of RSU activity: RSUs Weighted Average Value (In thousands) Balance as of January 1, 2013 1,218 29.57 Granted 216 63.04 Vested (480 ) 23.29 Cancelled (522 ) 86.10 Balance as of December 31, 2013 432 50.64 Granted 108 80.94 Vested (159 ) 45.90 Cancelled (44 ) 55.52 Balance as of December 31, 2014 337 61.97 Granted 1,643 123.42 Vested (493 ) 103.73 Cancelled (91 ) 67.11 Balance as of December 31, 2015 1,396 119.20 RSUs, which are stock awards that are granted to employees entitling the holder to shares of our common stock as the award vests, were our primary form of stock-based award prior to 2009. Our RSUs generally vest over three or four-years, but may accelerate in certain circumstances, including certain changes in control. During 2015, in connection with the acquisitions disclosed in Note 3 – Acquisition and Other Investments, we replaced certain unvested employee RSUs of the acquiree with Expedia awards the amount of which is included within granted in the above table. The total market value of shares vested during the years ended December 31, 2015, 2014 and 2013 was $60 million, $12 million and $29 million. In 2015, 2014 and 2013, we recognized total stock-based compensation expense of $178 million, $85 million and $130 million. The total income tax benefit related to stock-based compensation expense was $45 million, $20 million and $17 million for 2015, 2014 and 2013. Cash received from stock-based award exercises for the years ended December 31, 2015 and 2014 was $89 million and $101 million. Our employees that held IAC vested stock options prior to the IAC/InterActiveCorp (“IAC”) spin-off in August 2005 received vested stock options in both Expedia and IAC. In addition, our employees that held vested Expedia options prior to the TripAdvisor, Inc. (“TripAdvisor”) spin-off on December 20, 2011 received vested stock options in both Expedia and TripAdvisor. As these IAC and TripAdvisor stock options are exercised, we receive a tax deduction. Total current income tax benefits during the years ended December 31, 2015 and 2014 associated with the exercise of IAC, TripAdvisor and Expedia stock-based awards held by our employees were $130 million and $69 million. During 2015, our Chairman and Senior Executive exercised options to purchase 1.9 million shares. 0.5 million shares were withheld and concurrently cancelled by the Company to cover the weighted average exercise price of $30.38 per share and 0.8 million shares were withheld and concurrently cancelled to cover tax obligations, with a net delivery of 0.6 million shares. As of December 31, 2015, there was approximately $345 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to unvested stock-based awards, which is expected to be recognized in expense over a weighted-average period of 3.0 years. Employee Stock Purchase Plan During 2013, we implemented our 2013 Employee Stock Purchase Plan (“ESPP”), which allows shares of our common stock to be purchased by eligible employees at three-month intervals at 85% of the fair market value of the stock on the last day of each three-month period. Eligible employees are allowed to contribute up to 10% of their base compensation. During 2015, 2014 and 2013, approximately 95,000, 102,000, and 69,000 shares were purchased under this plan for an average price of $93.30, $68.70 and $46.31 per share. As of December 31, 2015, we have reserved approximately 1.2 million shares of our common stock for issuance under the ESPP. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | NOTE 11 — Income Taxes The following table summarizes our U.S. and foreign income (loss) before income taxes: Year Ended December 31, 2015 2014 2013 (In thousands) U.S. $ 24,397 $ 176,820 $ 26,888 Foreign 901,565 287,821 273,805 Total $ 925,962 $ 464,641 $ 300,693 Provision for Income Taxes The following table summarizes our provision for income taxes: Year Ended December 31, 2015 2014 2013 (In thousands) Current income tax expense: Federal $ 154,050 $ 120,541 $ 38,209 State 1,440 6,645 (402 ) Foreign 69,359 43,536 47,300 Current income tax expense 224,849 170,722 85,107 Deferred income tax (benefit) expense: Federal $ (6,865 ) $ (47,390 ) $ 12,371 State 2,156 (2,419 ) 445 Foreign (16,926 ) (29,222 ) (13,588 ) Deferred income tax (benefit) expense: (21,635 ) (79,031 ) (772 ) Income tax expense $ 203,214 $ 91,691 $ 84,335 We reduced our current income tax payable by $130 million, $69 million and $52 million for the years ended December 31, 2015, 2014 and 2013 for tax deductions attributable to stock-based compensation. Deferred Income Taxes As of December 31, 2015 and 2014, the significant components of our deferred tax assets and deferred tax liabilities were as follows: December 31, 2015 2014 (In thousands) Deferred tax assets: Provision for accrued expenses $ 95,499 $ 85,778 Loyalty rewards reserve 132,980 84,373 Occupancy tax reserve 16,358 22,813 Net operating loss and tax credit carryforwards 202,220 49,091 Stock-based compensation 56,729 39,344 Fair value of debt adjustment 24,770 — Other 28,766 21,637 Total deferred tax assets 557,322 303,036 Less valuation allowance (122,850 ) (50,748 ) Net deferred tax assets $ 434,472 $ 252,288 Deferred tax liabilities: Prepaid merchant bookings and prepaid expenses $ (41,006 ) $ (61,737 ) Intangible assets (758,976 ) (387,124 ) Property and equipment (87,308 ) (70,497 ) Other (5,565 ) (6,566 ) Total deferred tax liabilities $ (892,855 ) $ (525,924 ) Net deferred tax liability $ (458,383 ) $ (273,636 ) As of December 31, 2015, we had federal, state, and foreign net operating loss carryforwards (“NOLs”) of approximately $186 million, $167 million and $541 million. The federal, state, and foreign NOL carryforwards increased from the amount recorded as of December 31, 2014 due primarily to the historic NOL carryforwards of Orbitz and HomeAway. If not utilized, the federal and state NOLs will expire at various times between 2019 and 2035. Foreign NOLs of $487 million may be carried forward indefinitely, and foreign NOLs of $54 million will expire at various times between 2017 and 2022. As of December 31, 2015, we had a valuation allowance of approximately $123 million related to certain NOL carryforwards for which it is more likely than not the tax benefit will not be realized. The valuation allowance increased by $72 million from the amount recorded as of December 31, 2014 due to valuation allowances recorded for historic state and foreign NOLs of Orbitz and HomeAway for which realization is not certain. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period change, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. We have not provided deferred income taxes on taxable temporary differences related to investments in certain foreign subsidiaries where the foreign subsidiary has or will invest undistributed earnings indefinitely outside of the United States. The total amount of such undistributed earnings was $1.5 billion as of December 31, 2015, which approximates the related taxable temporary difference. In the event we distribute such earnings in the form of dividends or otherwise, we may be subject to income taxes. Further, a sale of these subsidiaries may cause these temporary differences to become taxable. Due to complexities in tax laws, uncertainties related to the timing and source of any potential distribution of such earnings, and other important factors such as the amount of associated foreign tax credits, it is not practicable to estimate the amount of unrecognized deferred taxes on these taxable temporary differences. Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate A reconciliation of amounts computed by applying the federal statutory income tax rate to income from continuing operations before income taxes to total income tax expense is as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Income tax expense at the federal statutory rate of 35% $ 324,087 $ 162,624 $ 105,243 Foreign tax rate differential (162,784 ) (81,371 ) (87,729 ) Unrecognized tax benefits and related interest 33,362 (1,625 ) 12,096 Change in valuation allowance 27,320 13,914 19,167 Pay-to-play penalties (11,222 ) 1,322 14,404 Acquisition related costs 12,545 56 — trivago acquisition stock-based compensation — — 19,825 Other, net (20,094 ) (3,229 ) 1,329 Income tax expense $ 203,214 $ 91,691 $ 84,335 Our effective tax rate in 2015, 2014 and 2013 was lower than the 35% federal statutory income tax rate due to earnings in foreign jurisdictions, primarily Switzerland, where the statutory income tax rate is lower. Uncertain Tax Positions A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: 2015 2014 2013 (In thousands) Balance, beginning of year $ 110,561 $ 109,712 $ 102,305 Increases to tax positions related to the current year 33,880 28,416 21,899 Increases to tax positions related to prior years 26,219 4,469 5,064 Decreases to tax positions related to prior years — — (3,732 ) Reductions due to lapsed statute of limitations (2,525 ) (23,709 ) (4,134 ) Settlements during current year (100 ) — (8,957 ) Interest and penalties 3,142 (8,327 ) (2,733 ) Balance, end of year $ 171,177 $ 110,561 $ 109,712 As of December 31, 2015, we had $171 million of gross unrecognized tax benefits, $138 million of which, if recognized, would affect the effective tax rate. As of December 31, 2014, we had $111 million of gross unrecognized tax benefits, $86 million of which, if recognized, would affect the effective tax rate. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. As of December 31, 2015 and 2014, total gross interest and penalties accrued was $10 million and $6 million, respectively. In connection with our unrecognized tax benefits, we recognized interest (benefit) expense in 2015, 2014 and 2013 of $3 million, $(8) million and $(3) million. The Company is routinely under audit by federal, state, local and foreign income tax authorities. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The IRS is currently examining Expedia’s U.S. consolidated federal income tax returns for the periods ended December 31, 2009 through December 31, 2010, as well as HomeAway’s pre-acquisition U.S. federal income tax returns for the periods ending December 31, 2011 through December 31, 2012. As of December 31, 2015, for the Expedia, Inc. and subsidiaries, statute of limitations for tax years 2009 through 2014 remain open to examination in the federal jurisdiction and most state jurisdictions. For the HomeAway and Orbitz groups, statutes of limitations for tax years 2001 through 2014 remain open to examination in the federal and most state jurisdictions due net operating loss carryforwards. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2015 | |
Redeemable Noncontrolling Interests | NOTE 12 — Redeemable Noncontrolling Interests We have noncontrolling interests in majority owned entities, which are carried at fair value as the noncontrolling interests contain certain rights, whereby we may acquire and the minority shareholders may sell to us the additional shares of the companies. A reconciliation of redeemable noncontrolling interest for the years ended December 31, 2015, 2014 and 2013 is as follows: Year ended December 31, 2015 2014 2013 Balance, beginning of the period $ 560,073 $ 364,871 $ 13,473 Acquisition of redeemable noncontrolling interest 6,829 — 343,984 Purchase of subsidiary shares at fair value — — (14,923 ) Net loss attributable to noncontrolling interests (15,417 ) (9,690 ) (7,130 ) Fair value adjustments 188,579 259,984 26,614 Currency translation adjustments and other (81,586 ) (55,092 ) 2,853 Balance, end of period $ 658,478 $ 560,073 $ 364,871 For information on redeemable noncontrolling interest acquired during 2013, see Note 3 — Acquisitions and Other Investments. The fair value of the redeemable noncontrolling interest was determined based on a blended analysis of the present value of future discounted cash flows and market value approach (“Level 3” on the fair value hierarchy). Our significant estimates in the discounted cash flow model include our weighted average cost of capital as well as long-term growth and profitability of the business. Our significant estimates in the market value approach include identifying similar companies with comparable business factors and assessing comparable revenue and operating multiples in estimating the fair value of the business. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity | NOTE 13 — Stockholders’ Equity Common Stock and Class B Common Stock Our authorized common stock consists of 1.6 billion shares of common stock with par value of $0.0001 per share, and 400 million shares of Class B common stock with par value of $0.0001 per share. Both classes of common stock qualify for and share equally in dividends, if declared by our Board of Directors, and generally vote together on all matters. Common stock is entitled to one vote per share and Class B common stock is entitled to 10 votes per share. Holders of common stock, voting as a single, separate class are entitled to elect 25% of the total number of directors. Class B common stockholders may, at any time, convert their shares into common stock, on a one for one share basis. Upon conversion, the Class B common stock is retired and is not available for reissue. In the event of liquidation, dissolution, distribution of assets or winding-up of Expedia, Inc., the holders of both classes of common stock have equal rights to receive all the assets of Expedia, Inc. after the rights of the holders of the preferred stock, if any, have been satisfied. Preferred Stock As of December 31, 2015 and 2014, we have no preferred stock outstanding. Share Repurchases During 2012, 2010, and 2006, our Board of Directors, or the Executive Committee, acting on behalf of the Board of Directors, authorized a repurchase of up to 20 million outstanding shares of our common stock during each of the respective years and during 2015 authorized a repurchase of up to 10 million shares of our common stock for a total of 70 million shares. Shares repurchased under the authorized programs were as follows: Year ended December 31, 2015 2014 2013 Number of shares repurchased 0.5 million 7.0 million 9.3 million Average price per share $ 85.27 $ 76.26 $ 55.59 Total cost of repurchases (in millions) (1) $ 45 $ 537 $ 515 (1) Amount excludes transaction costs. As of December 31, 2015, 11.2 million shares remain authorized for repurchase under the 2012 and 2015 authorizations with no fixed termination date for the repurchases. Dividends on our Common Stock In 2015, 2014 and 2013, the Executive Committee, acting on behalf of the Board of Directors, declared and paid the following dividends: Declaration Date Dividend Per Share Record Date Total Amount (in thousands) Payment Date Year ended December 31, 2015: February 4, 2015 $ 0.18 March 10, 2015 $ 22,895 March 26, 2015 April 29, 2015 0.18 May 28, 2015 23,096 June 18, 2015 July 29, 2015 0.24 August 27, 2015 31,182 September 17, 2015 October 29, 2015 0.24 November 19, 2015 31,354 December 10, 2015 Year ended December 31, 2014: February 5, 2014 $ 0.15 March 10, 2014 $ 19,602 March 27, 2014 April 30, 2014 0.15 May 30, 2014 19,231 June 19, 2014 July 30, 2014 0.18 August 27, 2014 22,944 September 17, 2014 October 27, 2014 0.18 November 20, 2014 22,920 December 11, 2014 Year ended December 31, 2013: February 5, 2013 $ 0.13 March 11, 2013 $ 17,983 March 28, 2013 April 24, 2013 0.13 May 30, 2013 17,638 June 19, 2013 July 24, 2013 0.15 August 28, 2013 20,459 September 18, 2013 October 28, 2013 0.15 November 21, 2013 19,680 December 12, 2013 In addition, in February 2016, the Executive Committee, acting on behalf of the Board of Directors, declared a quarterly cash dividend of $0.24 per share of outstanding common stock payable on March 30, 2016 to the stockholders of record as of the close of business on March 10, 2016. Future declarations of dividends are subject to final determination by our Board of Directors. Accumulated Other Comprehensive Income (Loss) The balance for each class of accumulated other comprehensive loss as of December 31, 2015 and 2014 is as follows: December 31, 2015 2014 (In thousands) Foreign currency translation adjustments, net of tax (1) $ (284,767 ) $ (138,715 ) Net unrealized gain (loss) on available for sale securities, net of tax (127 ) (59 ) Accumulated other comprehensive loss $ (284,894 ) $ (138,774 ) (1) Foreign currency translation adjustments, net of tax, includes foreign currency transaction losses at December 31, 2015 of $1 million ($2 million before tax) associated with our 2.5% Notes. The 2.5% Notes are Euro-denominated debt designated as hedges of certain of our Euro-denominated net assets. See Note 2 – Significant Accounting Policies for more information. The remaining balance in currency translation adjustments excludes income taxes as a result of our current intention to indefinitely reinvest the earnings of our international subsidiaries outside of the United States. Non-redeemable Noncontrolling Interests As of December 31, 2015, our ownership interest in AirAsia-Expedia was approximately 75%. As of December 31, 2014, our ownership interest in eLong was approximately 64%. Amounts paid in excess of the respective noncontrolling interest were recorded to additional paid-in capital. The following table shows the effects of the changes in noncontrolling interest on our equity for the respective periods, in thousands: 2015 2014 2013 Net income attributable to Expedia, Inc. $ 764,465 $ 398,097 $ 232,850 Transfers (to) from the noncontrolling interest due to: Net increase (decrease) in Expedia, Inc.’s paid-in capital for newly issued eLong shares and other equity activity (4,198 ) 24,090 6,928 Net transfers from noncontrolling interest (4,198 ) 24,090 6,928 Change from net income attributable to Expedia, Inc. and transfers from noncontrolling interest $ 760,267 $ 422,187 $ 239,778 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share | NOTE 14 — Earnings Per Share Basic Earnings Per Share Basic earnings per share was calculated for the years ended December 31, 2015, 2014 and 2013 using the weighted average number of common and Class B common shares outstanding during the period excluding restricted stock and stock held in escrow. Diluted Earnings Per Share For the years ended December 31, 2015, 2014 and 2013, we computed diluted earnings per share using (i) the number of shares of common stock and Class B common stock used in the basic earnings per share calculation as indicated above (ii) if dilutive, the incremental common stock that we would issue upon the assumed exercise of stock options and stock warrants and the vesting of RSUs using the treasury stock method, and (iii) other stock-based commitments. The following table presents our basic and diluted earnings per share: Year Ended December 31, 2015 2014 2013 (In thousands, except per share data) Net income attributable to Expedia, Inc. $ 764,465 $ 398,097 $ 232,850 Earnings per share attributable to Expedia, Inc. available to common stockholders: Basic $ 5.87 $ 3.09 $ 1.73 Diluted 5.70 2.99 1.67 Weighted average number of shares outstanding: Basic 130,159 128,912 134,912 Dilutive effect of: Options to purchase common stock 3,685 4,149 4,495 Other dilutive securities 174 107 186 Diluted 134,018 133,168 139,593 Outstanding stock awards that have been excluded from the calculations of diluted earnings per share attributable to common stockholders because their effect would have been antidilutive were approximately two million for 2015 and approximately four million for both 2014 and 2013. The earnings per share amounts are the same for common stock and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. |
Restructuring and Related Reorg
Restructuring and Related Reorganization Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Reorganization Charges | NOTE 15 — Restructuring and Related Reorganization Charges In connection with the migration of technology platforms and centralization of technology, supply and other operations, primarily related to acquisition integrations including Orbitz and the Wotif Group, we recognized $105 million in restructuring and related reorganization charges during 2015 as well as $26 million during the fourth quarter ended December 31, 2014. The 2015 charges were primarily related to employee severance and benefits related to the Orbitz integration and represent estimated severance amounts under pre-existing written plans and contracts Orbitz had with its employees, as well as stock-compensation charges for acceleration of replacement awards pursuant to certain of these agreements. We expect to incur approximately $30 million to $40 million in 2016 related to these integrations. The following table summarizes the restructuring and related reorganization activity for 2014 and 2015: Employee Stock-based Other Total (In thousands) Accrued liability as of January 1, 2014 $ — $ — $ — $ — Charges 10,783 — 14,847 25,630 Payments (572 ) — (540 ) (1,112 ) Non-cash items (94 ) — (649 ) (743 ) Accrued liability as of December 31, 2014 10,117 — 13,658 23,775 Charges 66,255 32,749 5,867 104,871 Payments (29,388 ) — (18,408 ) (47,796 ) Non-cash items (1,095 ) (32,749 ) 6 (33,838 ) Accrued liability as of December 31, 2015 $ 45,889 $ — $ 1,123 $ 47,012 The majority of the other activity in the above table relates to Australian stamp duty tax that was paid to certain Australian jurisdictions related to business restructuring events. |
Other Income (Expense)
Other Income (Expense) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income (Expense) | NOTE 16 — Other Income (Expense) Other, net The following table presents the components of other, net: For the Year Ended December 31, 2015 2014 2013 (In thousands) Foreign exchange rate gains ( $ 24,787 $ 6,069 $ (473 ) Noncontrolling investment basis adjustment 77,400 2,783 — Equity gains (losses) in unconsolidated affiliates (13 ) 2,743 2,909 Other 10,912 6,083 (5,224 ) Total $ 113,086 $ 17,678 $ (2,788 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | NOTE 17 — Commitments and Contingencies Letters of Credit, Purchase Obligations and Guarantees We have commitments and obligations that include purchase obligations, guarantees and LOCs, which could potentially require our payment in the event of demands by third parties or contingent events. The following table presents these commitments and obligations as of December 31, 2015: By Period Total Less than 1 year 1 to 3 3 to 5 More than 5 years (In thousands) Purchase obligations $ 244,848 $ 157,071 $ 82,043 $ 5,734 $ — Guarantees 192,155 179,348 12,807 — — Letters of credit 55,062 51,209 3,285 503 65 $ 492,065 $ 387,628 $ 98,135 $ 6,237 $ 65 Our purchase obligations represent the minimum obligations we have under agreements with certain of our vendors. These minimum obligations are less than our projected use for those periods. Payments may be more than the minimum obligations based on actual use. We have guarantees which consist primarily of bonds relating to tax assessments that we are contesting as well as bonds required by certain foreign countries’ aviation authorities for the potential non-delivery, by us, of packaged travel sold in those countries. The authorities also require that a portion of the total amount of packaged travel sold be bonded. Our guarantees also include certain surety bonds related to various company performance obligations. Our LOCs consist of stand-by LOCs, underwritten by a group of lenders, which we primarily issue for certain regulatory purposes as well as to certain hotel properties to secure our payment for hotel room transactions. The contractual expiration dates of these LOCs are shown in the table above. There were no material claims made against any stand-by LOCs during the years ended December 31, 2015, 2014 and 2013. In addition, our redeemable noncontrolling interest in trivago contains certain put/call rights whereby we may acquire and the minority shareholders may sell to us the minority shares of the company. See Note 3 —Acquisitions and Other Investments for further information. Lease Commitments We have contractual obligations in the form of operating leases for office space and related office equipment for which we record the related expense on a monthly basis. Certain leases contain periodic rent escalation adjustments and renewal options. Rent expense related to such leases is recorded on a straight-line basis. Operating lease obligations expire at various dates with the latest maturity in 2026. For the years ended December 31, 2015, 2014 and 2013, we recorded rental expense of $109 million, $96 million and $84 million. The following table presents our estimated future minimum rental payments under operating leases with noncancelable lease terms that expire after December 31, 2015, in thousands: Year ending December 31, 2016 $ 111,645 2017 101,878 2018 92,621 2019 65,842 2020 45,236 2021 and thereafter 109,075 $ 526,297 Legal Proceedings In the ordinary course of business, we are a party to various lawsuits. Management does not expect these lawsuits to have a material impact on the liquidity, results of operations, or financial condition of Expedia. We also evaluate other potential contingent matters, including value-added tax, excise tax, sales tax, transient occupancy or accommodation tax and similar matters. In addition, we assumed liability for ongoing lawsuits involving Orbitz Worldwide, Inc. and its subsidiaries in connection with our acquisition of Orbitz on September 17, 2015, and for ongoing lawsuits involving HomeAway, Inc. and its subsidiaries in connection with our acquisition of HomeAway on December 15, 2015. We do not believe that the aggregate amount of liability that could be reasonably possible with respect to these matters would have a material adverse effect on our financial results; however, litigation is inherently uncertain and the actual losses incurred in the event that our legal proceedings were to result in unfavorable outcomes could have a material adverse effect on our business and financial performance. Litigation Relating to Occupancy Taxes. Pay-to-Play. Hawaii (General Excise Tax). As a pre-condition to appealing the tax court rulings, the Expedia companies and Orbitz were required to “pay-to-play.” The total amount that the Expedia companies paid in 2013 to appeal the tax court ruling was $171 million, comprised of $78 million in taxes, $41 million in penalties and $52 million in interest. In light of the Hawaii Supreme Court decision, the State agreed to refund the Expedia companies $132 million, which was subsequently paid to Expedia in September 2015. As a result, we recognized a gain in legal reserves, occupancy tax and other during 2015 related to this matter. Also in September 2015, Orbitz received a similar refund of $22 million from the State of Hawaii. The amount paid, net of refunds, by the Expedia companies and Orbitz to the State of Hawaii in satisfaction of past general excise taxes on their services was $44 million. In addition, the Department of Taxation has issued final assessments for general excise taxes against the Expedia companies, including Orbitz, for (i) non-commissioned hotel reservations for the tax year 2012 totaling $26 million, which includes $6 million for Orbitz, (ii) non-commissioned travel agency services relating to rental cars for the tax years 2000 through 2012 totaling $39 million, which includes $10 million for Orbitz and a duplicative assessment for Expedia and Hotels.com totaling $9.3 million and thus are overstated, and (iii) non-commissioned travel agency services relating to hotel reservations and car rental for the tax year 2013 totaling $34 million, which includes $5 million for Orbitz. Similar assessments also have been issued against other online travel companies. These assessments are currently under review in tax court. The Department of Taxation has issued final assessments for general excise taxes against the Expedia companies, including Orbitz, dated December 23, 2015 for the time period 2000 to 2014 for hotel and car rental revenue for “agency model” transactions, and hotel and car rental revenue for “merchant model” transactions for 2014. These assessments total $12 million, including tax, interest and penalties. San Francisco. City of San Diego, California Litigation. Other Jurisdictions. The ultimate resolution of these contingencies may be greater or less than the pay-to-play payments made and our estimates of additional assessments mentioned above. During 2015, we recorded a $24 million benefit, net of contingency fees, in legal reserves, occupancy tax and other for the recovery of costs related to occupancy tax litigation matters. Matters Relating to International VAT Matters Relating to Hotel Booking Practices. In addition, the Directorate General for Competition, Consumer Affairs and Repression of Fraud (the “DGCCRF”), a directorate of the French Ministry of Economy and Finance with authority over unfair trading practices, brought a lawsuit in France against Expedia entities objecting to certain parity clauses in contracts between Expedia entities and French hotels. In May 2015, the French court ruled that certain of the parity provisions in certain contracts that were the subject of the lawsuit were not in compliance with French commercial law, but imposed no fine and no injunction. The DGCCRF has appealed the decision. A number of competition authorities, such as those in Australia, Austria, Belgium, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, Ireland, Italy, New Zealand, Poland, Sweden and Switzerland, have also inquired or initiated investigations into the travel industry and, in particular, in relation to parity provisions in contracts between hotels and online travel companies, including Expedia. While the ultimate outcomes of these lawsuits, inquiries or investigations are uncertain and our circumstances are distinguishable from those of other online travel agencies subject to similar lawsuits, inquiries or investigations, we note in this context that on April 21, 2015 the competition authorities in France, Italy and Sweden announced a proposed set of commitments offered by Booking.com to resolve the parity clause cases brought by these authorities against it. The German Federal Cartel Office (“FCO”) also has required another online travel company, Hotel Reservation Service (“HRS”), to remove certain clauses from its contracts with hotels. HRS appealed this decision, which the Higher Regional Court Düsseldorf rejected on January 9, 2015. On December 23, 2015, the FCO announced that it had also required Booking.com to remove certain clauses from its contracts with German hotels. Booking.com announced that it will appeal this decision. In addition, with effect from August 1, 2015, Expedia waived certain rate, conditions and availability parity clauses in its agreements with its European hotel partners for a period of five years. While Expedia maintains that its parity clauses have always been lawful and in compliance with competition law, Expedia considers that this waiver is a positive step towards facilitating the closure of the open investigations into such clauses on a harmonized pan-European basis. It is not certain what the outcome will be of the competition authorities’ assessment of Expedia’s announcement. Since Expedia’s waivers were implemented, the competition authorities in Denmark, United Kingdom, Greece, Norway, Sweden, Poland and Ireland have announced either the closure of their investigation against Expedia or a decision not to open an investigation against Expedia, in each case having had regard to the changes implemented by Expedia. On November 6, 2015, the Swiss competition authority announced that it had issued a final decision finding certain parity terms existing in previous versions of agreements between Swiss hotels and each of Expedia, Booking.com and Hotel Reservation Service to be prohibited under Swiss law. The decision explicitly notes that Expedia’s current contract terms with Swiss hotels are not subject to this prohibition. The Swiss competition authority imposed no fines or other sanctions against Expedia and did not find an abuse of a dominant market position by Expedia. On July 9, 2015, the French National Assembly adopted Article 133 of the Loi Macron (“Article 133”) that seeks to define the nature of the relationship between online reservation platforms and French hotels. Article 133 became effective on August 8, 2015. Expedia considers that Article 133 was drafted ambiguously and can be interpreted in a way that violates both European Union and French legal principles. Therefore Expedia has initiated a complaint with the European Commission relating to Article 133. However, following the effective date, Expedia has been in contact with its hotel partners in France regarding the impact of Article 133. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions | NOTE 18 — Related Party Transactions Mr. Diller, our Chairman of the Board of Directors and Senior Executive, through shares he owns beneficially as well as those subject to an irrevocable proxy granted by Liberty Interactive Corporation (“Liberty”), controlled approximately 54% of the combined voting power of the outstanding Expedia capital stock as of December 31, 2015. Mr. Diller effectively controls the outcome of all matters submitted to a vote or for the consent of our stockholders (other than with respect to the election by the holders of common stock of 25% of the members of our Board of Directors and matters as to which Delaware law requires a separate class vote). Upon Mr. Diller’s permanent departure from Expedia, the irrevocable proxy would terminate and depending on the capitalization of Expedia at such time, Liberty could effectively control the voting power of our capital stock. In addition to serving as our Chairman and Senior Executive, Mr. Diller also serves as Chairman of the Board of Directors and Senior Executive at IAC. Mr. Kaufman, a member of our Board of Directors and Vice Chairman, currently serves as a member of the Board of Directors and Vice Chairman at IAC. Our certificate of incorporation provides that no officer or director of Expedia who is also an officer or director of IAC will be liable to Expedia or its stockholders for breach of any fiduciary duty by reason of the fact that any such individual directs a corporate opportunity to IAC instead of Expedia, or does not communicate information regarding a corporate opportunity to Expedia because the officer or director has directed the corporate opportunity to IAC, which could have the effect of increasing the risk of conflicts of interest between the companies. IAC/InterActiveCorp. In addition, in conjunction with the IAC spin-off, we entered into a joint ownership and cost sharing agreement with IAC, under which IAC transferred to us 50% ownership in an airplane, which is available for use by both companies. In February 2013, Expedia and IAC completed the purchase of an additional aircraft in which each company has a 50% ownership interest. We paid $25 million (50% of the total purchase price and refurbishment costs) for our interest. In August 2013, the airplane was placed in service and is being depreciated over 10 years. We share equally in fixed and nonrecurring costs for both planes; direct operating costs are pro-rated based on actual usage. As of December 31, 2015 and 2014, the net basis in our ownership interest in both planes was $34 million and $36 million recorded in long-term investments and other assets. In 2015, 2014 and 2013, operating and maintenance costs paid directly to the jointly-owned subsidiary for the airplanes were nominal. Liberty Interactive Corporation Governance Agreement During 2015, 2014 and 2013, we issued 264,841 shares, 264,608 shares and 467,672 shares of common stock from treasury stock to Liberty at a price per share of $85.24, $77.11 and $54.04 and an aggregate value of approximately $23 million, $20 million and $25 million pursuant to and in accordance with the preemptive rights as detailed by the Governance Agreement with Liberty. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information | NOTE 19 — Segment Information Beginning in the first quarter of 2015, we had four reportable segments: Core OTA, trivago, Egencia and eLong through its disposal on May 22, 2015. The change from two reportable segments, Leisure and Egencia, resulted in our previously disclosed Leisure reportable segment being disaggregated into three segments as a result of the Company’s focus on providing additional information to reflect the unique market opportunities and competitive dynamics inherent in our eLong and trivago businesses. The acquisition of HomeAway on December 15, 2015 resulted in the creation of an additional segment. Our Core OTA segment, which consists of the aggregation of operating segments, provides a full range of travel and advertising services to our worldwide customers through a variety of brands including: Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Venere, Wotif Group, CarRentals.com, and Classic Vacations. Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch websites. Our Egencia segment, which also includes Orbitz for Business, provides managed travel services to corporate customers worldwide. Our HomeAway segment operates an online marketplace for the vacation rental industry. Our eLong segment specialized in mobile and online travel services in China through its disposal on May 22, 2015. We determined our operating segments based on how our chief operating decision makers manage our business, make operating decisions and evaluate operating performance. Our primary operating metric is adjusted EBITDA. Adjusted EBITDA for our Core OTA and Egencia segments includes allocations of certain expenses, primarily cost of revenue and facilities, and our Core OTA segment includes the total costs of our global supply organizations as well as the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant hotel revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change. Our segment disclosure includes intersegment revenues, which primarily consist of advertising and media services provided by our trivago segment to our Core OTA segment. These intersegment transactions are recorded by each segment at amounts that approximate fair value as if the transactions were between third parties, and therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within Corporate and Eliminations in the table below. Corporate and Eliminations also includes unallocated corporate functions and expenses. In addition, we record amortization of intangible assets and any related impairment, as well as stock-based compensation expense, restructuring and related reorganization charges, legal reserves, occupancy tax and other, and other items excluded from segment operating performance in Corporate and Eliminations. Such amounts are detailed in our segment reconciliation below. Included with eLong’s standalone financial statements for 2015 (through its disposal on May 22, 2015), 2014 and 2013 was approximately $20 million, $17 million and $11 million of stock-based compensation and intangible amortization. The following tables present our segment information for 2015, 2014 and 2013. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers. Year ended December 31, 2015 Core OTA trivago Egencia HomeAway (1) eLong (2) Corporate & Total (In thousands) Third-party revenue $ 5,877,213 $ 333,024 $ 400,115 $ 20,222 $ 41,743 $ — $ 6,672,317 Intersegment revenue — 214,632 — — — (214,632 ) — Revenue $ 5,877,213 $ 547,656 $ 400,115 $ 20,222 $ 41,743 $ (214,632 ) $ 6,672,317 Adjusted EBITDA $ 1,600,042 $ 2,856 $ 68,116 $ 4,011 $ (62,167 ) $ (509,747 ) $ 1,103,111 Depreciation (189,318 ) (2,113 ) (24,394 ) (742 ) (3,263 ) (116,850 ) (336,680 ) Amortization of intangible assets — — — — — (163,665 ) (163,665 ) Stock-based compensation — — — — — (178,068 ) (178,068 ) Legal reserves, occupancy tax and other — — — — — 104,587 104,587 Restructuring and related reorganization charges — — — — — (72,122 ) (72,122 ) Realized (gain) loss on revenue hedges (43,597 ) — — — — — (43,597 ) Operating income (loss) $ 1,367,127 $ 743 $ 43,722 $ 3,269 $ (65,430 ) $ (935,865 ) 413,566 Other income, net 512,396 Income before income taxes 925,962 Provision for income taxes (203,214 ) Net income 722,748 Net loss attributable to noncontrolling interests 41,717 Net income attributable to Expedia, Inc. $ 764,465 (1) Includes results since our acquisition of HomeAway on December 15, 2015. (2) Includes results through our disposal of eLong on May 22, 2015. Year ended December 31, 2014 Core OTA trivago Egencia eLong Corporate & Total (In thousands) Third-party revenue $ 4,905,150 $ 280,555 $ 399,704 $ 178,076 $ — $ 5,763,485 Intersegment revenue — 132,964 — — (132,964 ) — Revenue $ 4,905,150 $ 413,519 $ 399,704 $ 178,076 $ (132,964 ) $ 5,763,485 Adjusted EBITDA $ 1,387,386 $ 3,917 $ 60,933 $ (26,660 ) $ (400,788 ) $ 1,024,788 Depreciation (139,509 ) (1,360 ) (20,032 ) (6,710 ) (98,206 ) (265,817 ) Amortization of intangible assets — — — — (79,615 ) (79,615 ) Stock-based compensation — — — — (85,011 ) (85,011 ) Legal reserves, occupancy tax and other — — — — (41,539 ) (41,539 ) Restructuring and related reorganization charges — — — — (25,630 ) (25,630 ) Realized (gain) loss on revenue hedges (9,412 ) — — — — (9,412 ) Operating income (loss) $ 1,238,465 $ 2,557 $ 40,901 $ (33,370 ) $ (730,789 ) 517,764 Other expense, net (53,123 ) Income before income taxes 464,641 Provision for income taxes (91,691 ) Net income 372,950 Net loss attributable to noncontrolling interests 25,147 Net income attributable to Expedia, Inc. $ 398,097 Year ended December 31, 2013 Core OTA trivago Egencia eLong Corporate & Total (In thousands) Third-party revenue $ 4,069,284 $ 173,039 $ 364,923 $ 164,013 $ — $ 4,771,259 Intersegment revenue — 42,755 — — (42,755 ) — Revenue $ 4,069,284 $ 215,794 $ 364,923 $ 164,013 $ (42,755 ) $ 4,771,259 Adjusted EBITDA $ 1,171,863 $ 18,450 $ 59,801 $ (11,991 ) $ (359,400 ) $ 878,723 Depreciation (108,459 ) (570 ) (15,797 ) (5,442 ) (81,476 ) (211,744 ) Amortization of intangible assets — — — — (71,731 ) (71,731 ) Stock-based compensation — — — — (130,173 ) (130,173 ) Acquisition-related and other — — — — (9,829 ) (9,829 ) Legal reserves, occupancy tax and other — — — — (77,919 ) (77,919 ) Realized (gain) loss on revenue hedges (11,267 ) — — — — (11,267 ) Operating income (loss) $ 1,052,137 $ 17,880 $ 44,004 $ (17,433 ) $ (730,528 ) 366,060 Other expense, net (65,367 ) Income before income taxes 300,693 Provision for income taxes (84,335 ) Net income 216,358 Net loss attributable to noncontrolling interests 16,492 Net income attributable to Expedia, Inc. $ 232,850 Geographic Information The following table presents revenue by geographic area, the United States and all other countries, based on the geographic location of our websites or points of sale for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, 2015 2014 2013 (In thousands) Revenue United States $ 3,703,302 $ 3,046,520 $ 2,510,162 All other countries 2,969,015 2,716,965 2,261,097 $ 6,672,317 $ 5,763,485 $ 4,771,259 The following table presents property and equipment, net for the United States and all other countries, as of December 31, 2015 and 2014: As of December 31, 2015 2014 (In thousands) Property and equipment, net United States $ 944,208 $ 446,044 All other countries 120,051 107,082 $ 1,064,259 $ 553,126 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts | 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 Charges to Charges to (1) Deductions Balance at End (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. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information (Unaudited) | 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. |
Guarantor and Non-Guarantor Sup
Guarantor and Non-Guarantor Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Guarantor and Non-Guarantor Supplemental Financial Information | 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. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2015 Parent Guarantor Non-Guarantor (1) Eliminations Consolidated (In thousands) Revenue $ — $ 5,194,549 $ 1,682,677 $ (204,909 ) $ 6,672,317 Costs and expenses: Cost of revenue — 1,009,785 308,463 (8,689 ) 1,309,559 Selling and marketing — 2,347,919 1,230,059 (196,892 ) 3,381,086 Technology and content — 584,560 245,495 189 830,244 General and administrative — 373,162 200,268 483 573,913 Amortization of intangible assets — 58,524 105,141 — 163,665 Legal reserves, occupancy tax and other — (104,587 ) — — (104,587 ) Restructuring and related reorganization charges — 76,422 28,449 — 104,871 Intercompany (income) expense, net — 742,010 (742,010 ) — — Operating income — 106,754 306,812 — 413,566 Other income (expense): Equity in pre-tax earnings of consolidated subsidiaries 839,779 870,108 — (1,709,887 ) — Gain on sale of business — — 508,810 — 508,810 Other, net (119,451 ) 64,576 58,461 — 3,586 Total other income, net 720,328 934,684 567,271 (1,709,887 ) 512,396 Income before income taxes 720,328 1,041,438 874,083 (1,709,887 ) 925,962 Provision for income taxes 44,137 (194,251 ) (53,100 ) — (203,214 ) Net income 764,465 847,187 820,983 (1,709,887 ) 722,748 Net loss attributable to noncontrolling interests — — 41,717 — 41,717 Net income attributable to Expedia, Inc. $ 764,465 $ 847,187 $ 862,700 $ (1,709,887 ) $ 764,465 Comprehensive income attributable to Expedia, Inc. $ 763,202 $ 822,898 $ 742,132 $ (1,709,887 ) $ 618,345 (1) Includes results through our disposal of eLong on May 22, 2015. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Revenue $ — $ 4,500,723 $ 1,389,979 $ (127,217 ) $ 5,763,485 Costs and expenses: Cost of revenue — 898,647 274,788 5,646 1,179,081 Selling and marketing — 1,913,719 1,027,798 (133,188 ) 2,808,329 Technology and content — 472,762 213,159 233 686,154 General and administrative — 243,793 181,228 352 425,373 Amortization of intangible assets — 1,848 77,767 — 79,615 Legal reserves, occupancy tax and other — 41,539 — — 41,539 Restructuring and related reorganization charges — 5,020 20,610 — 25,630 Intercompany (income) expense, net — 666,675 (666,415 ) (260 ) — Operating income — 256,720 261,044 — 517,764 Other income (expense): Equity in pre-tax earnings of consolidated subsidiaries 455,831 282,769 — (738,600 ) — Other, net (91,569 ) 34,223 4,223 — (53,123 ) Total other income (expense), net 364,262 316,992 4,223 (738,600 ) (53,123 ) Income before income taxes 364,262 573,712 265,267 (738,600 ) 464,641 Provision for income taxes 33,835 (110,929 ) (14,597 ) — (91,691 ) Net income 398,097 462,783 250,670 (738,600 ) 372,950 Net loss attributable to noncontrolling interests — — 25,147 — 25,147 Net income attributable to Expedia, Inc. $ 398,097 $ 462,783 $ 275,817 $ (738,600 ) $ 398,097 Comprehensive income attributable to Expedia, Inc. $ 398,097 $ 463,075 $ 118,554 $ (738,600 ) $ 241,126 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2013 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Revenue $ — $ 3,849,746 $ 970,087 $ (48,574 ) $ 4,771,259 Costs and expenses: Cost of revenue — 797,801 235,753 4,480 1,038,034 Selling and marketing — 1,492,370 756,767 (52,992 ) 2,196,145 Technology and content — 399,763 178,052 5 577,820 General and administrative — 216,551 160,594 (67 ) 377,078 Amortization of intangible assets — 3,042 68,689 — 71,731 Acquistion-related and other — — 66,472 — 66,472 Legal reserves, occupancy tax and other — 77,919 — — 77,919 Intercompany (income) expense, net — 731,867 (731,867 ) — — Operating income — 130,433 235,627 — 366,060 Other income (expense): Equity in pre-tax earnings of consolidated subsidiaries 285,456 234,869 — (520,325 ) — Other, net (83,006 ) 7,394 10,245 — (65,367 ) Total other income (expense), net 202,450 242,263 10,245 (520,325 ) (65,367 ) Income before income taxes 202,450 372,696 245,872 (520,325 ) 300,693 Provision for income taxes 30,400 (81,170 ) (33,565 ) — (84,335 ) Net income 232,850 291,526 212,307 (520,325 ) 216,358 Net loss attributable to noncontrolling interests — — 16,492 — 16,492 Net income attributable to Expedia, Inc. $ 232,850 $ 291,526 $ 228,799 $ (520,325 ) $ 232,850 Comprehensive income attributable to Expedia, Inc. $ 232,850 $ 290,857 $ 247,643 $ (520,325 ) $ 251,025 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) ASSETS Total current assets $ 233,340 $ 2,261,450 $ 1,201,064 $ (717,093 ) $ 2,978,761 Investment in subsidiaries 8,420,890 3,106,719 — (11,527,609 ) — Intangible assets, net — 1,974,968 818,986 — 2,793,954 Goodwill — 5,859,457 2,133,484 — 7,992,941 Other assets, net 15,670 1,381,837 354,482 (13,833 ) 1,738,156 TOTAL ASSETS $ 8,669,900 $ 14,584,431 $ 4,508,016 $ (12,258,535 ) $ 15,503,812 LIABILITIES AND STOCKHOLDERS’ EQUITY Total current liabilities $ 538,856 $ 5,511,639 $ 592,615 $ (717,093 ) $ 5,926,017 Long-term debt 3,201,277 — — — 3,201,277 Other liabilities — 620,685 181,421 (13,833 ) 788,273 Redeemable noncontrolling interests — — 658,478 — 658,478 Stockholders’ equity 4,929,767 8,452,107 3,075,502 (11,527,609 ) 4,929,767 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 8,669,900 $ 14,584,431 $ 4,508,016 $ (12,258,535 ) $ 15,503,812 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) ASSETS Total current assets $ 189,203 $ 3,938,831 $ 1,064,981 $ (2,268,526 ) $ 2,924,489 Investment in subsidiaries 4,689,302 1,338,089 — (6,027,391 ) — Intangible assets, net — 637,986 652,101 — 1,290,087 Goodwill — 2,436,533 1,519,368 — 3,955,901 Other assets, net 7,082 583,782 259,197 — 850,061 TOTAL ASSETS $ 4,885,587 $ 8,935,221 $ 3,495,647 $ (8,295,917 ) $ 9,020,538 LIABILITIES AND STOCKHOLDERS’ EQUITY Total current liabilities $ 1,245,071 $ 3,707,638 $ 1,502,432 $ (2,268,526 ) $ 4,186,615 Long-term debt 1,746,787 — — — 1,746,787 Other liabilities — 516,365 116,969 — 633,334 Redeemable noncontrolling interests — — 560,073 — 560,073 Stockholders’ equity 1,893,729 4,711,218 1,316,173 (6,027,391 ) 1,893,729 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 4,885,587 $ 8,935,221 $ 3,495,647 $ (8,295,917 ) $ 9,020,538 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 Parent Guarantor Non-Guarantor Consolidated (In thousands) Operating activities: Net cash provided by operating activities $ — $ 624,327 $ 743,718 $ 1,368,045 Investing activities: Capital expenditures, including internal-use software and website development — (709,679 ) (77,362 ) (787,041 ) Purchases of investments — (473,538 ) (47,791 ) (521,329 ) Sales and maturities of investments — 327,191 83,732 410,923 Acquisitions, net of cash acquired (126,779 ) (1,873,079 ) (63,791 ) (2,063,649 ) Transfers (to) from related parties 126,779 (303,846 ) 177,067 — Proceeds from sale of business, net of cash divested and disposal costs — — 523,882 523,882 Other, net — 54,226 11,728 65,954 Net cash provided by (used in) investing activities — (2,978,725 ) 607,465 (2,371,260 ) Financing activities: Proceeds from issuance of long-term debt, net of debt issuance costs 1,441,860 — — 1,441,860 Purchases of treasury stock (60,546 ) — — (60,546 ) Proceeds from issuance of treasury stock 22,575 — — 22,575 Payment of dividends to stockholders (108,527 ) — — (108,527 ) Proceeds from exercise of equity awards and employee stock purchase plan 96,526 — 1,190 97,716 Withholding taxes for stock option exercises (85,033 ) — — (85,033 ) Transfers (to) from related parties (1,396,210 ) 2,350,385 (954,175 ) — Other, net 89,355 (11,998 ) 18,797 96,154 Net cash provided by (used in) financing activities — 2,338,387 (934,188 ) 1,404,199 Effect of exchange rate changes on cash and cash equivalents — (86,269 ) (41,116 ) (127,385 ) Net increase (decrease) in cash and cash equivalents — (102,280 ) 375,879 273,599 Cash and cash equivalents at beginning of year — 943,976 458,724 1,402,700 Cash and cash equivalents at end of year $ — $ 841,696 $ 834,603 $ 1,676,299 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 Parent Guarantor Non-Guarantor Consolidated (In thousands) Operating activities: Net cash provided by operating activities from continuing operations $ — $ 1,027,571 $ 339,388 $ 1,366,959 Investing activities: Capital expenditures, including internal-use software and website development — (281,696 ) (46,691 ) (328,387 ) Purchases of investments — (913,205 ) (281,005 ) (1,194,210 ) Sales and maturities of investments — 861,744 300,813 1,162,557 Acquisitions, net of cash acquired — — (560,668 ) (560,668 ) Other, net — (2,805 ) (744 ) (3,549 ) Net cash used in investing activities from continuing operations — (335,962 ) (588,295 ) (924,257 ) Financing activities: Proceeds from issuance of long-term debt, net of issuance costs 492,894 — — 492,894 Purchases of treasury stock (537,861 ) — — (537,861 ) Proceeds from issuance of treasury stock 20,404 20,404 Payment of dividends to stockholders (84,697 ) — — (84,697 ) Proceeds from exercise of equity awards and employee stock purchase plan 104,598 — 3,523 108,121 Transfers (to) from related parties (53,494 ) (287,394 ) 340,888 — Other, net 58,156 (2,124 ) (6,744 ) 49,288 Net cash provided by (used in) financing activities from continuing operations — (289,518 ) 337,667 48,149 Effect of exchange rate changes on cash and cash equivalents — (64,798 ) (44,386 ) (109,184 ) Net increase in cash and cash equivalents — 337,293 44,374 381,667 Cash and cash equivalents at beginning of year — 606,683 414,350 1,021,033 Cash and cash equivalents at end of year $ — $ 943,976 $ 458,724 $ 1,402,700 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2013 Parent Guarantor Non-Guarantor Consolidated (In thousands) Operating activities: Net cash provided by operating activities from continuing operations $ — $ 305,174 $ 458,026 $ 763,200 Investing activities: Capital expenditures, including internal-use software and website development — (243,428 ) (65,153 ) (308,581 ) Purchases of investments — (932,011 ) (284,580 ) (1,216,591 ) Sales and maturities of investments — 1,193,948 308,628 1,502,576 Acquisitions, net of cash acquired — — (541,247 ) (541,247 ) Other, net — 40,850 (2,520 ) 38,330 Net cash provided by (used in) investing activities from continuing operations — 59,359 (584,872 ) (525,513 ) Financing activities: Purchases of treasury stock (522,900 ) — — (522,900 ) Proceeds from issuance of treasury stock 25,273 — — 25,273 Payment of dividends to stockholders (75,760 ) — — (75,760 ) Proceeds from exercise of equity awards and employee stock purchase plan 52,134 — 4,702 56,836 Transfers (to) from related parties 482,975 (754,948 ) 271,973 — Other, net 38,278 7,565 (21,808 ) 24,035 Net cash provided by (used in) financing activities from continuing operations — (747,383 ) 254,867 (492,516 ) Net cash provided by (used in) continuing operations — (382,850 ) 128,021 (254,829 ) Net cash provided by discontinued operations — 13,637 — 13,637 Effect of exchange rate changes on cash and cash equivalents — (31,260 ) 324 (30,936 ) Net increase (decrease) in cash and cash equivalents — (400,473 ) 128,345 (272,128 ) Cash and cash equivalents at beginning of year — 1,007,156 286,005 1,293,161 Cash and cash equivalents at end of year $ — $ 606,683 $ 414,350 $ 1,021,033 |
Organization and Basis of Pre32
Organization and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include Expedia, Inc., our wholly-owned subsidiaries, and entities we control, or in which we have a variable interest and are the primary beneficiary of expected cash profits or losses. We record our investments in entities that we do not control, but over which we have the ability to exercise significant influence, using the equity method. We have eliminated significant intercompany transactions and accounts. We believe that the assumptions underlying our consolidated financial statements are reasonable. However, these consolidated financial statements do not present our future financial position, the results of our future operations and cash flows. |
Consolidation | Consolidation Our consolidated financial statements include the accounts of Expedia, Inc., our wholly-owned subsidiaries, and entities for which we control a majority of the entity’s outstanding common stock. We record noncontrolling interest in our consolidated financial statements to recognize the minority ownership interest in our consolidated subsidiaries. Noncontrolling interest in the earnings and losses of consolidated subsidiaries represent the share of net income or loss allocated to members or partners in our consolidated entities, which includes the noncontrolling interest share of net income or loss from our redeemable and non-redeemable noncontrolling interest entities. We characterize our minority interest in AirAsia-Expedia as a non-redeemable noncontrolling interest and classify it as a component of stockholders’ equity in our consolidated financial statements. Noncontrolling interests with shares redeemable at the option of the minority holders, such as trivago, have been included in redeemable noncontrolling interests. See “Redeemable Noncontrolling Interest” below for further information. We have eliminated significant intercompany transactions and accounts in our consolidated financial statements. |
Accounting Estimates | Accounting Estimates We use estimates and assumptions in the preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Our estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our consolidated financial statements. These estimates and assumptions also affect the reported amount of net income or loss during any period. Our actual financial results could differ significantly from these estimates. The significant estimates underlying our consolidated financial statements include revenue recognition; recoverability of current and long-lived assets, intangible assets and goodwill; income and transactional taxes, such as potential settlements related to occupancy and excise taxes; loss contingencies; loyalty program liabilities; redeemable noncontrolling interests; acquisition purchase price allocations; stock-based compensation and accounting for derivative instruments. |
Reclassifications | Reclassifications We have reclassified certain amounts related to our prior period results to conform to our current period presentation. We also included a reclassification on our consolidated balance sheet as of December 31, 2014 to correct the immaterial presentation of cash dividends as a reduction to retained earnings to the extent the Company maintained retained earnings instead of additional paid-in capital. |
Revenue Recognition | Revenue Recognition We recognize revenue when it is earned and realizable based on the following criteria: persuasive evidence that an arrangement exists, services have been rendered, the price is fixed or determinable and collectability is reasonably assured. We also evaluate the presentation of revenue on a gross versus a net basis. The consensus of the authoritative accounting literature is that the presentation of revenue as “the gross amount billed to a customer because it has earned revenue from the sale of goods or services or the net amount retained (that is, the amount billed to a customer less the amount paid to a supplier) because it has earned a commission or fee” is a matter of judgment that depends on the relevant facts and circumstances. In making an evaluation of this issue, some of the factors that should be considered are: whether we are the primary obligor in the arrangement (strong indicator); whether we have general supply risk (before customer order is placed or upon customer return) (strong indicator); and whether we have latitude in establishing price. The guidance clearly indicates that the evaluations of these factors, which at times can be contradictory, are subject to significant judgment and subjectivity. If the conclusion drawn is that we perform as an agent or a broker without assuming the risks and rewards of ownership of goods, revenue should be reported on a net basis. For our primary transaction-based revenue models, discussed below, we have determined net presentation is appropriate for the majority of revenue transactions. We offer travel products and services on a stand-alone and package basis primarily through the following business models: the merchant model, the agency model and the advertising model. In addition, upon our acquisition of HomeAway on December 15, 2015, we also earn revenue related to vacation rental listing and other ancillary services provided to property owners and managers. Under the merchant model, we facilitate the booking of hotel rooms, airline seats, car rentals and destination services from our travel suppliers and we are the merchant of record for such bookings. The majority of our merchant transactions relate to hotel bookings. Under the agency model, we act as the agent in the transaction, passing reservations booked by the traveler to the relevant travel provider. We receive commissions or ticketing fees from the travel supplier and/or traveler. For certain agency airline, hotel and car transactions, we also receive fees from global distribution systems partners that control the computer systems through which these reservations are booked. Under the advertising model, we offer travel and non-travel advertisers access to a potential source of incremental traffic and transactions through our various media and advertising offerings on trivago and our transaction-based websites. Vacation rental listing revenue is primarily earned on a subscription basis where property owners or managers purchase in advance online advertising services related to the listing of their properties for rent over a fixed term (typically one year). Listing revenue is also generated on a commission basis, when traveler bookings are completed on our websites. Merchant Hotel. Agency and Merchant Air. Agency Hotel, Car and Cruise. Packages. Advertising Vacation Rental Listing and Other Ancillary Services. Other |
Cash and Cash Equivalents | Cash and Cash Equivalents Our cash and cash equivalents include cash and liquid financial instruments, including money market funds and time deposit investments, with maturities of three months or less when purchased. |
Short-term and Long-term Investments | Short-term and Long-term Investments We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. Based on our intent and ability to hold certain assets until maturity, we may classify certain debt securities as held to maturity and measure them at amortized cost. Investments classified as available for sale are recorded at fair value with unrealized holding gains and losses recorded, net of tax, as a component of accumulated other comprehensive income. Realized gains and losses from the sale of available for sale investments, if any, are determined on a specific identification basis. Investments with remaining maturities of less than one year are classified within short-term investments. All other investments with remaining maturities ranging from one year to five years are classified within long-term investments and other assets. We record investments using the equity method when we have the ability to exercise significant influence over the investee. Equity investments without readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for using the cost method of accounting and classified within long-term investments and other assets. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional investments. As of December 31, 2015 and 2014, we had $299 million and $12 million of cost method investments. We periodically evaluate the recoverability of investments and record a write-down to fair value if a decline in value is determined to be other-than-temporary. |
Accounts Receivable | Accounts Receivable Accounts receivable are generally due within thirty days and are recorded net of an allowance for doubtful accounts. We consider accounts outstanding longer than the contractual payment terms as past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the condition of the general economy and industry as a whole. |
Property and Equipment | Property and Equipment We record property and equipment at cost, net of accumulated depreciation and amortization. We also capitalize certain costs incurred related to the development of internal use software. We capitalize costs incurred during the application development stage related to the development of internal use software. We expense costs incurred related to the planning and post-implementation phases of development as incurred. We compute depreciation using the straight-line method over the estimated useful lives of the assets, which is three to five years for computer equipment, capitalized software development and furniture and other equipment. We amortize leasehold improvement using the straight-line method, over the shorter of the estimated useful life of the improvement or the remaining term of the lease. We establish assets and liabilities for the present value of estimated future costs to return certain of our leased facilities to their original condition under the authoritative accounting guidance for asset retirement obligations. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs. |
Business Combinations | Business Combinations We assign the value of the consideration transferred to acquire a business to the tangible assets and identifiable intangible assets acquired and liabilities assumed on the basis of their fair values at the date of acquisition. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships and trade names, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. In September 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that simplifies the accounting for measurement-period adjustments in a business combination. Under the ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined rather than retrospectively. The guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years with early adoption permitted for financial statements that have not been issued. We elected to early adopt the third quarter of 2015. |
Recoverability of Goodwill and Indefinite-Lived Intangible Assets | Recoverability of Goodwill and Indefinite-Lived Intangible Assets Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination as of the acquisition date. We assess goodwill and indefinite-lived intangible assets, neither of which is amortized, for impairment annually as of October 1, or more frequently, if events and circumstances indicate impairment may have occurred. In the evaluation of goodwill for impairment, we typically first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying amount. If so, we perform a quantitative assessment and compare the fair value of the reporting unit to the carrying value. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is potentially impaired and we proceed to step two of the impairment analysis. In step two of the analysis, we will record an impairment loss equal to the excess of the carrying value of the reporting unit’s goodwill over its implied fair value should such a circumstance arise. Periodically, we may choose to forgo the initial qualitative assessment and perform quantitative analysis to assist in our annual evaluation. We generally base our measurement of fair value of reporting units on a blended analysis of the present value of future discounted cash flows and market valuation approach. The discounted cash flows model indicates the fair value of the reporting units based on the present value of the cash flows that we expect the reporting units to generate in the future. Our significant estimates in the discounted cash flows model include: our weighted average cost of capital; long-term rate of growth and profitability of our business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the Company to comparable publicly traded firms in similar lines of business. Our significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment and assessing comparable revenue and operating income multiples in estimating the fair value of the reporting units. We believe the weighted use of discounted cash flows and market approach is the best method for determining the fair value of our reporting units because these are the most common valuation methodologies used within the travel and internet industries; and the blended use of both models compensates for the inherent risks associated with either model if used on a stand-alone basis. In addition to measuring the fair value of our reporting units as described above, we consider the combined carrying and fair values of our reporting units in relation to the Company’s total fair value of equity plus debt as of the assessment date. Our equity value assumes our fully diluted market capitalization, using either the stock price on the valuation date or the average stock price over a range of dates around the valuation date, plus an estimated acquisition premium which is based on observable transactions of comparable companies. The debt value is based on the highest value expected to be paid to repurchase the debt, which can be fair value, principal or principal plus a premium depending on the terms of each debt instrument. In our evaluation of our indefinite-lived intangible assets, we typically first perform a qualitative assessment to determine whether the fair value of the indefinite-lived intangible asset is more likely than not impaired. If so, we perform a quantitative assessment and an impairment charge is recorded for the excess of the carrying value of indefinite-lived intangible assets over their fair value. We base our measurement of fair value of indefinite-lived intangible assets, which primarily consist of trade name and trademarks, using the relief-from-royalty method. This method assumes that the trade name and trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. As with goodwill, periodically, we may choose to forgo the initial qualitative assessment and perform quantitative analysis to assist in our annual evaluation of indefinite-lived intangible assets. |
Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets | Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets Intangible assets with definite lives and other long-lived assets are carried at cost and are amortized on a straight-line basis over their estimated useful lives of less than one to twelve years. We review the carrying value of long-lived assets or asset groups, including property and equipment, to be used in operations whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, we would assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, we will estimate the fair value of the asset group using appropriate valuation methodologies which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset groups carrying amount and its estimated fair value. Assets held for sale, to the extent we have any, are reported at the lower of cost or fair value less costs to sell. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests We have noncontrolling interests in majority owned entities, which are carried at fair value as the noncontrolling interests contain certain rights, whereby we may acquire and the minority shareholders may sell to us the additional shares of the companies. Changes in fair value of the shares for which the minority holders may sell to us are recorded to the noncontrolling interest and as charges or credits to retained earnings (or additional paid-in capital in the absence of retained earnings). Fair value determinations require high levels of judgment (“Level 3” on the fair value hierarchy) and are based on various valuation techniques, including market comparables and discounted cash flow projections. |
Income Taxes | Income Taxes We record income taxes under the liability method. Deferred tax assets and liabilities reflect our estimation of the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for book and tax purposes. We determine deferred income taxes based on the differences in accounting methods and timing between financial statement and income tax reporting. Accordingly, we determine the deferred tax asset or liability for each temporary difference based on the enacted tax rates expected to be in effect when we realize the underlying items of income and expense. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward periods available to us for tax reporting purposes, as well as other relevant factors. We may establish a valuation allowance to reduce deferred tax assets to the amount we believe is more likely than not to be realized. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law, tax sharing agreements or variances between our actual and anticipated operating results, we make certain judgments and estimates. Therefore, actual income taxes could materially vary from these estimates. In November 2015, the FASB issued an ASU that simplified the presentation of deferred taxes by requiring all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. Under the previous practice, the requirement was to separate deferred taxes into current and noncurrent amounts on the balance sheet. The new standard does not affect the requirement to offset deferred tax assets and liabilities for each taxpaying component within a tax jurisdiction. We elected to early adopt for the current reporting period ending December 31, 2015 on a prospective basis. Other than the revised balance sheet presentation of deferred income tax assets and liabilities, the adoption of this standard did not have an effect on our consolidated financial statements. We account for uncertain tax positions based on a two-step process of evaluating recognition and measurement criteria. The first step assesses whether the tax position is more likely than not to be sustained upon examination by the tax authority, including resolution of any appeals or litigation, based on the technical merits of the position. If the tax position meets the more likely than not criteria, the portion of the tax benefit greater than 50% likely to be realized upon settlement with the tax authority is recognized in the financial statements. |
Presentation of Taxes in the Income Statement | Presentation of Taxes in the Income Statement We present taxes that we collect from customers and remit to government authorities on a net basis in our consolidated statements of operations. |
Discontinued Operations | Discontinued Operations As of January 1, 2015, we adopted the ASU amending the requirements for reporting discontinued operations, which may include a component of an entity or a group of components of an entity. The amendment limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations and financial results and it also requires expanded disclosures surrounding discontinued operations. Upon adoption, the standard impacted how we assess and report discontinued operations, including our divestiture of eLong during the second quarter of 2015 as disclosed below in Note 4 – Disposition of Business. On December 20, 2011, we completed the spin-off of TripAdvisor, which was accounted for as a discontinued operation. During 2013, we received an income tax refund of $14 million related to a tax benefit for extinguishment of debt, which was included within cash provided by discontinued operations in our consolidated statement of cash flows for the period. |
Derivative Instruments | Derivative Instruments Derivative instruments are carried at fair value on our consolidated balance sheets. The fair values of the derivative financial instruments generally represent the estimated amounts we would expect to receive or pay upon termination of the contracts as of the reporting date. At December 31, 2015 and 2014, our derivative instruments primarily consisted of foreign currency forward contracts. We use foreign currency forward contracts to economically hedge certain merchant revenue exposures and in lieu of holding certain foreign currency cash for the purpose of economically hedging our foreign currency-denominated operating liabilities. Our goal in managing our foreign exchange risk is to reduce, to the extent practicable, our potential exposure to the changes that exchange rates might have on our earnings, cash flows and financial position. Our foreign currency forward contracts are typically short-term and, as they do not qualify for hedge accounting treatment, we classify the changes in their fair value in other, net. We do not hold or issue financial instruments for speculative or trading purposes. In June 2015, we issued Euro 650 million of registered senior unsecured notes that are due in June 2022 and bear interest at 2.5% (the “2.5% Notes”). The aggregate principal value of the 2.5% Notes is designated as a hedge of our net investment in certain Euro functional currency subsidiaries. The notes are measured at Euro to U.S. Dollar exchange rates at each balance sheet date and transaction gains or losses due to changes in rates are recorded in accumulated other comprehensive income (loss) (“OCI”). The Euro-denominated net assets of these subsidiaries are translated into U.S. Dollars at each balance sheet date, with effects of foreign currency changes also reported in accumulated OCI Since the notional amount of the recorded Euro-denominated debt is less than the notional amount of our net investment, we do not expect to incur any ineffectiveness on this hedge. |
Foreign Currency Translation and Transaction Gains and Losses | Foreign Currency Translation and Transaction Gains and Losses Certain of our operations outside of the United States use the related local currency as their functional currency. We translate revenue and expense at average rates of exchange during the period. We translate assets and liabilities at the rates of exchange as of the consolidated balance sheet dates and include foreign currency translation gains and losses as a component of accumulated OCI. Due to the nature of our operations and our corporate structure, we also have subsidiaries that have significant transactions in foreign currencies other than their functional currency. We record transaction gains and losses in our consolidated statements of operations related to the recurring remeasurement and settlement of such transactions. To the extent practicable, we attempt to minimize this exposure by maintaining natural hedges between our current assets and current liabilities of similarly denominated foreign currencies. Additionally, as discussed above, we use foreign currency forward contracts to economically hedge certain merchant revenue exposures and in lieu of holding certain foreign currency cash for the purpose of economically hedging our foreign currency-denominated operating liabilities. |
Debt Issuance Costs | Debt Issuance Costs We defer costs we incur to issue debt and amortize these costs to interest expense over the term of the debt or, when the debt can be redeemed at the option of the holders, over the term of the redemption option. |
Marketing Promotions | Marketing Promotions We periodically provide incentive offers to our customers to encourage booking of travel products and services. Generally, our incentive offers are as follows: Current Discount Offers. Inducement Offers. Concession Offers. Loyalty and Points Based Offers. ® ® SM , the currency of Orbitz Rewards, on flights, hotels and vacation packages and instantly redeem those Orbucks on future bookings at various hotels worldwide. As travelers accumulate points towards free travel products, we record a liability for the estimated future cost of redemptions. We determine the future redemption obligation based on factors that require significant judgment including: (i) the estimated cost of travel products to be redeemed, and (ii) an estimated redemption rate based on the overall accumulation and usage of points towards free travel products, which is determined through current and historical trends as well as statistical modeling techniques. As of December 31, 2015 and 2014, we had a liability related to our loyalty programs of $364 million and $235 million included in accrued expenses and other current liabilities. |
Advertising Expense | Advertising Expense We incur advertising expense consisting of offline costs, including television and radio advertising, and online advertising expense to promote our brands. We expense the production costs associated with advertisements in the period in which the advertisement first takes place. We expense the costs of communicating the advertisement (e.g., television airtime) as incurred each time the advertisement is shown. For the years ended December 31, 2015, 2014 and 2013, our advertising expense was $2.1 billion, $1.6 billion and $1.2 billion. As of December 31, 2015 and 2014, we had $16 million and $24 million of prepaid marketing expenses included in prepaid expenses and other current assets. |
Stock-Based Compensation | Stock-Based Compensation We measure and amortize the fair value of stock options and restricted stock units (“RSUs”) as follows: Stock Options. Restricted Stock Units. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive these awards, and subsequent events are not indicative of the reasonableness of our original estimates of fair value. In determining the estimated forfeiture rates for stock-based awards, we periodically conduct an assessment of the actual number of equity awards that have been forfeited to date as well as those expected to be forfeited in the future. We consider many factors when estimating expected forfeitures, including the type of award, the employee class and historical experience. The estimate of stock awards that will ultimately be forfeited requires significant judgment and to the extent that actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period such estimates are revised. |
Earnings Per Share | Earnings Per Share We compute basic earnings per share by taking net income attributable to Expedia, Inc. available to common stockholders divided by the weighted average number of common and Class B common shares outstanding during the period excluding restricted stock and stock held in escrow. Diluted earnings per share include the potential dilution that could occur from stock-based awards and other stock-based commitments using the treasury stock or the as if converted methods, as applicable. For additional information on how we compute earnings per share, see Note 14 — Earnings Per Share. |
Fair Value Recognition, Measurement and Disclosure | Fair Value Recognition, Measurement and Disclosure The carrying amounts of cash and cash equivalents and restricted cash and cash equivalents reported on our consolidated balance sheets approximate fair value as we maintain them with various high-quality financial institutions. The accounts receivable are short-term in nature and are generally settled shortly after the sale. We disclose the fair value of our financial instruments based on the fair value hierarchy using the following three categories: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. |
Certain Risks and Concentrations | Certain Risks and Concentrations Our business is subject to certain risks and concentrations including dependence on relationships with travel suppliers, primarily airlines and hotels, dependence on third-party technology providers, exposure to risks associated with online commerce security and payment related fraud. We also rely on global distribution system partners and third-party service providers for certain fulfillment services . Financial instruments, which potentially subject us to concentration of credit risk, consist primarily of cash and cash equivalents and corporate debt securities. We maintain some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. Our cash and cash equivalents are primarily composed of prime institutional money market funds as well as bank (both interest and non-interest bearing) account balances denominated in U.S. dollars, euros, Australian dollar, British pound sterling, Canadian dollar and Japanese yen. |
Contingent Liabilities | Contingent Liabilities We have a number of regulatory and legal matters outstanding, as discussed further in Note 17 —Commitments and Contingencies. Periodically, we review the status of all significant outstanding matters to assess the potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated statements of operations. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. |
Occupancy Tax | Occupancy Tax Some states and localities impose a transient occupancy or accommodation tax on the use or occupancy of hotel accommodations. Generally, hotels collect taxes based on the room rate paid to the hotel and remit these taxes to the various tax authorities. When a customer books a room through one of our travel services, we collect a tax recovery charge from the customer which we pay to the hotel. We calculate the tax recovery charge by applying the occupancy tax rate supplied to us by the hotels to the amount that the hotel has agreed to receive for the rental of the room by the consumer. In all but a limited number of jurisdictions, we do not collect or remit occupancy taxes, nor do we pay occupancy taxes to the hotel operator on the portion of the customer payment we retain. Some jurisdictions have questioned our practice in this regard. While the applicable tax provisions vary among the jurisdictions, we generally believe that we are not required to collect and remit such occupancy taxes. We are engaged in discussions with tax authorities in various jurisdictions to resolve this issue. Some tax authorities have brought lawsuits or have levied assessments asserting that we are required to collect and remit occupancy tax. The ultimate resolution in all jurisdictions cannot be determined at this time. We have established a reserve for the potential settlement of issues related to hotel occupancy taxes when determined to be probable and estimable. See Note 17 — Commitments and Contingencies for further discussion. |
Recent Accounting Policies Not Yet Adopted | Recent Accounting Policies Not Yet Adopted In May 2014, the FASB issued an ASU amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an ASU deferring the effective date of the revenue standard so it would be effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption prohibited before December 15, 2016. We are in the process of evaluating the impact of the adoption of this new guidance on our consolidated financial statements. In April 2015, the FASB issued an ASU that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance is effective for annual and interim reporting periods beginning after December 15, 2015, but early adoption is permitted. We anticipate adopting this new guidance on January 1, 2016 with no material impact on our consolidated financial statements. In April 2015, the FASB issued guidance to clarify the accounting for fees paid by a customer in a cloud computing arrangement. This standard clarifies whether a customer should account for a cloud computing arrangement as an acquisition of a software license or as a service arrangement by providing characteristics that a cloud computing arrangement must have in order to be accounted for as a software license acquisition. This guidance is effective for annual periods beginning after December 15, 2015, but early adoption is permitted. Upon adoption, an entity may apply the new guidance prospectively or retrospectively to all prior periods presented in the financial statements. We anticipate adopting this new guidance prospectively on January 1, 2016 with no material impact on our consolidated financial statements. In January 2016, the FASB issued new guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statements. |
Fair Value Measurements | We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash equivalents and investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, a Level 2 input. As of December 31, 2015 and 2014, our cash and cash equivalents consisted primarily of prime institutional money market funds with maturities of three months or less, time deposits as well as bank account balances. We invest in investment grade corporate debt securities, all of which are classified as available for sale. As of December 31, 2015, we had $34 million of short-term and $65 million of long-term available for sale investments and the amortized cost basis of the investments approximated their fair value with both gross unrealized gains and gross unrealized losses of less than $1 million. As of December 31, 2014, we had $43 million of short-term and $100 million of long-term available for sale investments and the amortized cost basis of the investments approximated their fair value with both gross unrealized gains and gross unrealized losses of less than $1 million. We also hold time deposit investments with financial institutions. Time deposits with original maturities of less than three months are classified as cash equivalents and those with remaining maturities of less than one year are classified within short-term investments. We use foreign currency forward contracts to economically hedge certain merchant revenue exposures and in lieu of holding certain foreign currency cash for the purpose of economically hedging our foreign currency-denominated operating liabilities. As of December 31, 2015, we were party to outstanding forward contracts hedging our liability exposures with a total net notional value of $1.9 billion. We had a net forward asset of $8 million and $9 million recorded in prepaid expenses and other current assets as of December 31, 2015 and 2014. We recorded $46 million, $10 million and $47 million in net gains (losses) from foreign currency forward contracts in 2015, 2014 and 2013. |
Acquisitions and Other Invest33
Acquisitions and Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Orbitz Worldwide, Inc. | |
Schedule of Purchase Price Allocation | The following summarizes the preliminary allocation of the purchase price for Orbitz, in thousands: Cash consideration for shares $ 1,362,362 Settlement of Orbitz debt 432,231 Replacement restricted stock units attributable to pre-acquisition service 16,717 Other consideration 2,214 Total purchase consideration $ 1,813,524 Cash $ 194,515 Accounts receivable, net (1) 147,517 Other current assets 33,728 Long-term assets 115,163 Intangible assets with definite lives (2) 515,384 Intangible assets with indefinite lives (3) 166,800 Goodwill 1,443,521 Current liabilities (635,209 ) Other long-term liabilites (54,627 ) Deferred tax liabilities, net (113,268 ) Total $ 1,813,524 (1) Gross accounts receivable was $157 million, of which $9 million was estimated to be uncollectible. (2) Acquired definite-lived intangible assets primarily consist of customer relationship assets, developed technology assets and partner relationship assets with estimated useful lives ranging from less than one to ten years with a weighted average life of 6.03 years. (3) Acquired indefinite-lived intangible assets primarily consist of trade names and trademarks. |
Home Away Inc. and Orbitz Worldwide, Inc. | |
Supplemental Pro Forma Information | Supplemental information on an unaudited combined pro forma basis, as if the HomeAway and Orbitz acquisitions had been consummated on January 1, 2014, is presented as follows, in thousands: Years Ended December 31, 2015 2014 Revenue $ 7,838,863 $ 7,110,688 Net income attributable to Expedia, Inc. 816,634 301,331 |
Other Acquisitions During Period | |
Schedule of Purchase Price Allocation | The following summarizes the allocation of the purchase price for the 2015 acquisitions, excluding HomeAway and Orbitz, in thousands: Goodwill $ 196,431 Intangible assets with indefinite lives 163,400 Intangible assets with definite lives (1) 146,126 Net assets and non-controlling interests acquired (2) (23,366 ) Deferred tax liabilities (7,910 ) Total (3) $ 474,681 (1) Acquired definite-lived intangible assets primarily consist of customer relationship, reacquired right and supplier relationship assets and have estimated useful lives of between four and ten years with a weighted average life of 5.8 years. (2) Includes cash acquired of $41 million. (3) The total purchase price includes noncash consideration of $99 million related to an equity method investment, which is currently consolidated upon our acquisition of a controlling interest, as discussed above, with the remainder paid in cash during the period. |
Wotif Group | |
Schedule of Purchase Price Allocation | The aggregate purchase price consideration of $568 million was allocated to the fair value of assets acquired and liabilities assumed as follows, in thousands: Goodwill $ 350,093 Intangible assets with indefinite lives 125,762 Intangible assets with definite lives (1) 138,292 Net liabilities (2) (43,429 ) Deferred tax liabilities (2,908 ) Total $ 567,810 (1) Acquired definite-lived intangible assets primarily consist of supplier contracts and customer relationships and have estimated useful lives of between less than one year and 10 years with a weighted average life of 7.8 years. (2) Includes cash acquired of $36 million. |
Trivago | |
Schedule of Purchase Price Allocation | The purchase price was allocated to the fair value of assets acquired and liabilities assumed as follows, in thousands: Goodwill $ 633,436 Intangible assets with indefinite lives 220,416 Intangible assets with definite lives (1) 136,281 Net assets (2) 19,064 Deferred tax liabilities (111,379 ) Redeemable noncontrolling interest (343,984 ) Total $ 553,834 (1) Acquired definite-lived intangible assets primarily consist of technology, partner relationship and non-compete agreement assets and have estimated useful lives of between three and seven years with a weighted average life of 3.7 years. (2) Includes cash acquired of $13 million. |
Home Away Inc | |
Schedule of Purchase Price Allocation | The preliminary aggregate purchase consideration for HomeAway is as follows (in thousands): Fair value of shares of Expedia common stock issued to HomeAway stockholders and equity award holders $ 2,515,755 Cash consideration paid to HomeAway stockholders and equity award holders 1,027,061 Replacement restricted stock units and stock options attributable to pre-acquisition service 19,513 Total purchase consideration $ 3,562,329 The following summarizes the preliminary allocation of the purchase price for HomeAway, in thousands: Cash $ 900,281 Other current assets (1) 54,665 Long-term assets 81,564 Intangible assets with definite lives (2) 555,600 Intangible assets with indefinite lives (3) 196,900 Goodwill 2,602,712 Deferred revenue (182,978 ) Other current liabilities (104,316 ) Debt (402,500 ) Other long-term liabilities (31,122 ) Deferred tax liabilities, net (108,477 ) Total $ 3,562,329 (1) Gross accounts receivable was $25 million, of which $1 million was estimated to be uncollectible. (2) Acquired definite-lived intangible assets primarily consist of supplier relationships, customer relationships and developed technology assets with average lives ranging from less than one to twelve years and an estimated combined weighted average useful life of 5.73 years. (3) Acquired indefinite-lived intangible assets primarily consist of trade names and trademarks. |
Disposition of Business (Tables
Disposition of Business (Tables) - eLong, Inc | 12 Months Ended |
Dec. 31, 2015 | |
Carrying Amounts of Assets and Liabilities Immediately Preceding Disposition | The following table presents the carrying amounts of our eLong business immediately preceding the disposition on May 22, 2015, in thousands: Total current assets (1) $ 350,196 Total long-term assets 137,709 Total assets divested $ 487,905 Total current liabilities $ 187,296 Total long-term liabilities 5,782 Total liabilities divested $ 193,078 Components of accumulated other comprehensive income divested 45,259 Non-redeemable noncontrolling interest divested 92,550 Net carrying value divested $ 157,018 (1) Includes cash and cash equivalents of approximately $74 million. |
Amounts Related to eLong in Consolidated Results of Operations | The following table presents certain amounts related to eLong in our consolidated results of operations through its disposal on May 22, 2015: Year Ended December 31, 2015 2014 2013 (In thousands) Operating loss (1) $ (85,536 ) $ (50,757 ) $ (28,857 ) Income (loss) before taxes (2) 438,843 (40,535 ) (17,031 ) Income (loss) before taxes attributable to Expedia, Inc. (2) 465,400 (25,078 ) (7,669 ) Net income (loss) attributable to Expedia, Inc. (3) 349,183 (27,119 ) (17,518 ) (1) Includes stock-based compensation and amortization of intangible assets of approximately $20 million, $17 million and $11 million for 2015, 2014 and 2013, which are included within Corporate & Eliminations in Note 19 – Segment Information. (2) The year ended December 31, 2015 includes the pre-tax gain of $509 million related to the gain on sale. (3) The year ended December 31, 2015 includes the after-tax gain of $395 million related to the gain on sale. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets measured at fair value on a recurring basis as of December 31, 2015 are classified using the fair value hierarchy in the table below: Total Level 1 Level 2 (In thousands) Assets Cash equivalents: Money market funds $ 218,340 $ 218,340 $ — Time deposits 29,126 — 29,126 Derivatives: Foreign currency forward contracts 8,045 — 8,045 Investments: Corporate debt securities 98,403 — 98,403 Total assets $ 353,914 $ 218,340 $ 135,574 Financial assets measured at fair value on a recurring basis as of December 31, 2014 are classified using the fair value hierarchy in the table below: Total Level 1 Level 2 (In thousands) Assets Cash equivalents: Money market funds $ 161,059 $ 161,059 $ — Time deposits 298,968 — 298,968 Restricted cash: Time deposits 19,980 — 19,980 Derivatives: Foreign currency forward contracts 9,176 — 9,176 Investments: Time deposits 312,762 — 312,762 Corporate debt securities 142,575 — 142,575 Total assets $ 944,520 $ 161,059 $ 783,461 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Property and Equipment, Net | Our property and equipment consists of the following: December 31, 2015 2014 (In thousands) Capitalized software development $ 1,220,822 $ 1,041,924 Computer equipment 485,074 313,738 Furniture and other equipment 65,939 42,110 Buildings and leasehold improvements 199,604 135,372 Land 130,725 — 2,102,164 1,533,144 Less: accumulated depreciation (1,201,744 ) (1,011,085 ) Projects in progress 163,839 31,067 Property and equipment, net $ 1,064,259 $ 553,126 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Goodwill and Intangible Assets | The following table presents our goodwill and intangible assets as of December 31, 2015 and 2014: December 31, 2015 2014 (In thousands) Goodwill $ 7,992,941 $ 3,955,901 Intangible assets with indefinite lives 1,459,854 976,638 Intangible assets with definite lives, net 1,334,100 313,449 $ 10,786,895 $ 5,245,988 |
Changes in Goodwill by Reportable Segment | The following table presents the changes in goodwill by reportable segment: Core OTA trivago Egencia HomeAway eLong Total (In thousands) Balance as of January 1, 2014 $ 2,781,296 $ 633,436 $ 194,651 $ — $ 54,291 $ 3,663,674 Additions 402,752 1,045 — — 14,611 418,408 Foreign exchange translation (50,553 ) (41,062 ) (38,327 ) — 3,761 (126,181 ) Balance as of December 31, 2014 3,133,495 593,419 156,324 — 72,663 3,955,901 Additions 1,633,711 6,241 — 2,602,712 469 4,243,133 Deductions — — — — (72,693 ) (72,693 ) Foreign exchange translation (49,835 ) (60,083 ) (23,043 ) — (439 ) (133,400 ) Balance as of December 31, 2015 $ 4,717,371 $ 539,577 $ 133,281 $ 2,602,712 $ — $ 7,992,941 |
Components of Intangible Assets with Definite Lives | The following table presents the components of our intangible assets with definite lives as of December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Cost Accumulated Net Cost Accumulated Net (In thousands) Supplier relationships $ 655,414 $ (223,666 ) $ 431,748 $ 357,022 $ (200,257 ) $ 156,765 Technology 490,584 (258,261 ) 232,323 257,045 (216,841 ) 40,204 Customer relationships 613,277 (73,248 ) 540,029 110,302 (29,225 ) 81,077 Domain names 115,102 (34,758 ) 80,344 51,592 (28,630 ) 22,962 Other 446,788 (397,132 ) 49,656 404,441 (392,000 ) 12,441 Total $ 2,321,165 $ (987,065 ) $ 1,334,100 $ 1,180,402 $ (866,953 ) $ 313,449 |
Estimated Future Amortization Expense Related to Intangible Assets | The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2015, assuming no subsequent impairment of the underlying assets, is as follows, in thousands: 2016 $ 317,909 2017 260,127 2018 247,729 2019 147,768 2020 113,183 2021 and thereafter 247,384 Total $ 1,334,100 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long Term Debt Outstanding | The following table sets forth our outstanding debt: December 31, 2015 2014 (In thousands) 7.456% senior notes due 2018 $ 500,000 $ 500,000 5.95% senior notes due 2020, net of discount 749,561 749,485 4.5% senior notes due 2024, net of discount 497,534 497,302 2.5% (€650 million) senior notes due 2022, net of discount 707,653 — 5.0% senior notes due 2026, net of discount 746,529 — Long-term debt (1) $ 3,201,277 $ 1,746,787 (1) Excludes debt acquired in the HomeAway acquisition included within accrued expenses and other current liabilities as of December 31, 2015. For further information, see Note 3 — Acquisitions and Other Investments. |
Stock-Based Awards and Other 39
Stock-Based Awards and Other Equity Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Stock Option Activity | The following table presents a summary of our stock option activity: Options Weighted Average Remaining Aggregate (In thousands) (In years) (In thousands) Balance as of January 1, 2013 15,236 $ 25.24 Granted 4,016 65.29 Exercised (2,730 ) 18.10 Cancelled (1,095 ) 37.87 Balance as of December 31, 2013 15,427 36.03 Granted 4,113 78.70 Exercised (3,804 ) 25.66 Cancelled (1,301 ) 53.69 Balance as of December 31, 2014 14,435 49.33 Granted 7,572 94.13 Exercised (4,201 ) 34.57 Cancelled (751 ) 74.06 Balance as of December 31, 2015 17,055 71.77 4.9 $ 896,377 Exercisable as of December 31, 2015 4,880 42.32 3.2 400,120 Vested and expected to vest after December 31, 2015 15,980 70.70 4.9 856,574 |
Weighted Average Assumptions of Black-Scholes and Monte Carlo Option-Pricing Models | The fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 were estimated at the date of grant using appropriate valuation techniques, including the Black-Scholes and Monte Carlo option-pricing models, assuming the following weighted average assumptions: 2015 2014 2013 Risk-free interest rate 1.19 % 1.13 % 0.71 % Expected volatility 41.48 % 42.97 % 44.81 % Expected life (in years) 4.06 4.04 4.07 Dividend yield 0.78 % 0.76 % 0.80 % Weighted-average estimated fair value of options granted during the year $ 30.56 $ 25.80 $ 21.96 |
Summary of Restricted Stock Units Activity | The following table presents a summary of RSU activity: RSUs Weighted Average Value (In thousands) Balance as of January 1, 2013 1,218 29.57 Granted 216 63.04 Vested (480 ) 23.29 Cancelled (522 ) 86.10 Balance as of December 31, 2013 432 50.64 Granted 108 80.94 Vested (159 ) 45.90 Cancelled (44 ) 55.52 Balance as of December 31, 2014 337 61.97 Granted 1,643 123.42 Vested (493 ) 103.73 Cancelled (91 ) 67.11 Balance as of December 31, 2015 1,396 119.20 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Domestic and Foreign Income (Loss) Before Income Taxes | The following table summarizes our U.S. and foreign income (loss) before income taxes: Year Ended December 31, 2015 2014 2013 (In thousands) U.S. $ 24,397 $ 176,820 $ 26,888 Foreign 901,565 287,821 273,805 Total $ 925,962 $ 464,641 $ 300,693 |
Components of Income Tax Expense | The following table summarizes our provision for income taxes: Year Ended December 31, 2015 2014 2013 (In thousands) Current income tax expense: Federal $ 154,050 $ 120,541 $ 38,209 State 1,440 6,645 (402 ) Foreign 69,359 43,536 47,300 Current income tax expense 224,849 170,722 85,107 Deferred income tax (benefit) expense: Federal $ (6,865 ) $ (47,390 ) $ 12,371 State 2,156 (2,419 ) 445 Foreign (16,926 ) (29,222 ) (13,588 ) Deferred income tax (benefit) expense: (21,635 ) (79,031 ) (772 ) Income tax expense $ 203,214 $ 91,691 $ 84,335 |
Components of Deferred Tax Assets and Deferred Tax Liabilities | As of December 31, 2015 and 2014, the significant components of our deferred tax assets and deferred tax liabilities were as follows: December 31, 2015 2014 (In thousands) Deferred tax assets: Provision for accrued expenses $ 95,499 $ 85,778 Loyalty rewards reserve 132,980 84,373 Occupancy tax reserve 16,358 22,813 Net operating loss and tax credit carryforwards 202,220 49,091 Stock-based compensation 56,729 39,344 Fair value of debt adjustment 24,770 — Other 28,766 21,637 Total deferred tax assets 557,322 303,036 Less valuation allowance (122,850 ) (50,748 ) Net deferred tax assets $ 434,472 $ 252,288 Deferred tax liabilities: Prepaid merchant bookings and prepaid expenses $ (41,006 ) $ (61,737 ) Intangible assets (758,976 ) (387,124 ) Property and equipment (87,308 ) (70,497 ) Other (5,565 ) (6,566 ) Total deferred tax liabilities $ (892,855 ) $ (525,924 ) Net deferred tax liability $ (458,383 ) $ (273,636 ) |
Schedule of Statutory Federal Income Tax Rate to Income from Continuing Operations before Income Taxes | A reconciliation of amounts computed by applying the federal statutory income tax rate to income from continuing operations before income taxes to total income tax expense is as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Income tax expense at the federal statutory rate of 35% $ 324,087 $ 162,624 $ 105,243 Foreign tax rate differential (162,784 ) (81,371 ) (87,729 ) Unrecognized tax benefits and related interest 33,362 (1,625 ) 12,096 Change in valuation allowance 27,320 13,914 19,167 Pay-to-play penalties (11,222 ) 1,322 14,404 Acquisition related costs 12,545 56 — trivago acquisition stock-based compensation — — 19,825 Other, net (20,094 ) (3,229 ) 1,329 Income tax expense $ 203,214 $ 91,691 $ 84,335 |
Income Tax Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: 2015 2014 2013 (In thousands) Balance, beginning of year $ 110,561 $ 109,712 $ 102,305 Increases to tax positions related to the current year 33,880 28,416 21,899 Increases to tax positions related to prior years 26,219 4,469 5,064 Decreases to tax positions related to prior years — — (3,732 ) Reductions due to lapsed statute of limitations (2,525 ) (23,709 ) (4,134 ) Settlements during current year (100 ) — (8,957 ) Interest and penalties 3,142 (8,327 ) (2,733 ) Balance, end of year $ 171,177 $ 110,561 $ 109,712 |
Redeemable Noncontrolling Int41
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reconciliation of Redeemable Noncontrolling Interest | A reconciliation of redeemable noncontrolling interest for the years ended December 31, 2015, 2014 and 2013 is as follows: Year ended December 31, 2015 2014 2013 Balance, beginning of the period $ 560,073 $ 364,871 $ 13,473 Acquisition of redeemable noncontrolling interest 6,829 — 343,984 Purchase of subsidiary shares at fair value — — (14,923 ) Net loss attributable to noncontrolling interests (15,417 ) (9,690 ) (7,130 ) Fair value adjustments 188,579 259,984 26,614 Currency translation adjustments and other (81,586 ) (55,092 ) 2,853 Balance, end of period $ 658,478 $ 560,073 $ 364,871 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share Repurchases | Shares repurchased under the authorized programs were as follows: Year ended December 31, 2015 2014 2013 Number of shares repurchased 0.5 million 7.0 million 9.3 million Average price per share $ 85.27 $ 76.26 $ 55.59 Total cost of repurchases (in millions) (1) $ 45 $ 537 $ 515 (1) Amount excludes transaction costs. |
Summary Of Dividends Declared | In 2015, 2014 and 2013, the Executive Committee, acting on behalf of the Board of Directors, declared and paid the following dividends: Declaration Date Dividend Per Share Record Date Total Amount (in thousands) Payment Date Year ended December 31, 2015: February 4, 2015 $ 0.18 March 10, 2015 $ 22,895 March 26, 2015 April 29, 2015 0.18 May 28, 2015 23,096 June 18, 2015 July 29, 2015 0.24 August 27, 2015 31,182 September 17, 2015 October 29, 2015 0.24 November 19, 2015 31,354 December 10, 2015 Year ended December 31, 2014: February 5, 2014 $ 0.15 March 10, 2014 $ 19,602 March 27, 2014 April 30, 2014 0.15 May 30, 2014 19,231 June 19, 2014 July 30, 2014 0.18 August 27, 2014 22,944 September 17, 2014 October 27, 2014 0.18 November 20, 2014 22,920 December 11, 2014 Year ended December 31, 2013: February 5, 2013 $ 0.13 March 11, 2013 $ 17,983 March 28, 2013 April 24, 2013 0.13 May 30, 2013 17,638 June 19, 2013 July 24, 2013 0.15 August 28, 2013 20,459 September 18, 2013 October 28, 2013 0.15 November 21, 2013 19,680 December 12, 2013 |
Accumulated Other Comprehensive Loss , Net of Taxes | The balance for each class of accumulated other comprehensive loss as of December 31, 2015 and 2014 is as follows: December 31, 2015 2014 (In thousands) Foreign currency translation adjustments, net of tax (1) $ (284,767 ) $ (138,715 ) Net unrealized gain (loss) on available for sale securities, net of tax (127 ) (59 ) Accumulated other comprehensive loss $ (284,894 ) $ (138,774 ) (1) Foreign currency translation adjustments, net of tax, includes foreign currency transaction losses at December 31, 2015 of $1 million ($2 million before tax) associated with our 2.5% Notes. The 2.5% Notes are Euro-denominated debt designated as hedges of certain of our Euro-denominated net assets. See Note 2 – Significant Accounting Policies for more information. The remaining balance in currency translation adjustments excludes income taxes as a result of our current intention to indefinitely reinvest the earnings of our international subsidiaries outside of the United States. |
Effects of Changes in Ownership Interest on Stockholders Equity | The following table shows the effects of the changes in noncontrolling interest on our equity for the respective periods, in thousands: 2015 2014 2013 Net income attributable to Expedia, Inc. $ 764,465 $ 398,097 $ 232,850 Transfers (to) from the noncontrolling interest due to: Net increase (decrease) in Expedia, Inc.’s paid-in capital for newly issued eLong shares and other equity activity (4,198 ) 24,090 6,928 Net transfers from noncontrolling interest (4,198 ) 24,090 6,928 Change from net income attributable to Expedia, Inc. and transfers from noncontrolling interest $ 760,267 $ 422,187 $ 239,778 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Basic and Diluted Earnings Per Share | The following table presents our basic and diluted earnings per share: Year Ended December 31, 2015 2014 2013 (In thousands, except per share data) Net income attributable to Expedia, Inc. $ 764,465 $ 398,097 $ 232,850 Earnings per share attributable to Expedia, Inc. available to common stockholders: Basic $ 5.87 $ 3.09 $ 1.73 Diluted 5.70 2.99 1.67 Weighted average number of shares outstanding: Basic 130,159 128,912 134,912 Dilutive effect of: Options to purchase common stock 3,685 4,149 4,495 Other dilutive securities 174 107 186 Diluted 134,018 133,168 139,593 |
Restructuring and Related Reo44
Restructuring and Related Reorganization Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Reorganization Activity | The following table summarizes the restructuring and related reorganization activity for 2014 and 2015: Employee Stock-based Other Total (In thousands) Accrued liability as of January 1, 2014 $ — $ — $ — $ — Charges 10,783 — 14,847 25,630 Payments (572 ) — (540 ) (1,112 ) Non-cash items (94 ) — (649 ) (743 ) Accrued liability as of December 31, 2014 10,117 — 13,658 23,775 Charges 66,255 32,749 5,867 104,871 Payments (29,388 ) — (18,408 ) (47,796 ) Non-cash items (1,095 ) (32,749 ) 6 (33,838 ) Accrued liability as of December 31, 2015 $ 45,889 $ — $ 1,123 $ 47,012 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Other Income (Expense) | The following table presents the components of other, net: For the Year Ended December 31, 2015 2014 2013 (In thousands) Foreign exchange rate gains ( $ 24,787 $ 6,069 $ (473 ) Noncontrolling investment basis adjustment 77,400 2,783 — Equity gains (losses) in unconsolidated affiliates (13 ) 2,743 2,909 Other 10,912 6,083 (5,224 ) Total $ 113,086 $ 17,678 $ (2,788 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Commitments and Obligations | The following table presents these commitments and obligations as of December 31, 2015: By Period Total Less than 1 year 1 to 3 3 to 5 More than 5 years (In thousands) Purchase obligations $ 244,848 $ 157,071 $ 82,043 $ 5,734 $ — Guarantees 192,155 179,348 12,807 — — Letters of credit 55,062 51,209 3,285 503 65 $ 492,065 $ 387,628 $ 98,135 $ 6,237 $ 65 |
Estimated Future Minimum Rental Payments Under Operating Leases | The following table presents our estimated future minimum rental payments under operating leases with noncancelable lease terms that expire after December 31, 2015, in thousands: Year ending December 31, 2016 $ 111,645 2017 101,878 2018 92,621 2019 65,842 2020 45,236 2021 and thereafter 109,075 $ 526,297 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Operating Segment Information | The following tables present our segment information for 2015, 2014 and 2013. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers. Year ended December 31, 2015 Core OTA trivago Egencia HomeAway (1) eLong (2) Corporate & Total (In thousands) Third-party revenue $ 5,877,213 $ 333,024 $ 400,115 $ 20,222 $ 41,743 $ — $ 6,672,317 Intersegment revenue — 214,632 — — — (214,632 ) — Revenue $ 5,877,213 $ 547,656 $ 400,115 $ 20,222 $ 41,743 $ (214,632 ) $ 6,672,317 Adjusted EBITDA $ 1,600,042 $ 2,856 $ 68,116 $ 4,011 $ (62,167 ) $ (509,747 ) $ 1,103,111 Depreciation (189,318 ) (2,113 ) (24,394 ) (742 ) (3,263 ) (116,850 ) (336,680 ) Amortization of intangible assets — — — — — (163,665 ) (163,665 ) Stock-based compensation — — — — — (178,068 ) (178,068 ) Legal reserves, occupancy tax and other — — — — — 104,587 104,587 Restructuring and related reorganization charges — — — — — (72,122 ) (72,122 ) Realized (gain) loss on revenue hedges (43,597 ) — — — — — (43,597 ) Operating income (loss) $ 1,367,127 $ 743 $ 43,722 $ 3,269 $ (65,430 ) $ (935,865 ) 413,566 Other income, net 512,396 Income before income taxes 925,962 Provision for income taxes (203,214 ) Net income 722,748 Net loss attributable to noncontrolling interests 41,717 Net income attributable to Expedia, Inc. $ 764,465 (1) Includes results since our acquisition of HomeAway on December 15, 2015. (2) Includes results through our disposal of eLong on May 22, 2015. Year ended December 31, 2014 Core OTA trivago Egencia eLong Corporate & Total (In thousands) Third-party revenue $ 4,905,150 $ 280,555 $ 399,704 $ 178,076 $ — $ 5,763,485 Intersegment revenue — 132,964 — — (132,964 ) — Revenue $ 4,905,150 $ 413,519 $ 399,704 $ 178,076 $ (132,964 ) $ 5,763,485 Adjusted EBITDA $ 1,387,386 $ 3,917 $ 60,933 $ (26,660 ) $ (400,788 ) $ 1,024,788 Depreciation (139,509 ) (1,360 ) (20,032 ) (6,710 ) (98,206 ) (265,817 ) Amortization of intangible assets — — — — (79,615 ) (79,615 ) Stock-based compensation — — — — (85,011 ) (85,011 ) Legal reserves, occupancy tax and other — — — — (41,539 ) (41,539 ) Restructuring and related reorganization charges — — — — (25,630 ) (25,630 ) Realized (gain) loss on revenue hedges (9,412 ) — — — — (9,412 ) Operating income (loss) $ 1,238,465 $ 2,557 $ 40,901 $ (33,370 ) $ (730,789 ) 517,764 Other expense, net (53,123 ) Income before income taxes 464,641 Provision for income taxes (91,691 ) Net income 372,950 Net loss attributable to noncontrolling interests 25,147 Net income attributable to Expedia, Inc. $ 398,097 Year ended December 31, 2013 Core OTA trivago Egencia eLong Corporate & Total (In thousands) Third-party revenue $ 4,069,284 $ 173,039 $ 364,923 $ 164,013 $ — $ 4,771,259 Intersegment revenue — 42,755 — — (42,755 ) — Revenue $ 4,069,284 $ 215,794 $ 364,923 $ 164,013 $ (42,755 ) $ 4,771,259 Adjusted EBITDA $ 1,171,863 $ 18,450 $ 59,801 $ (11,991 ) $ (359,400 ) $ 878,723 Depreciation (108,459 ) (570 ) (15,797 ) (5,442 ) (81,476 ) (211,744 ) Amortization of intangible assets — — — — (71,731 ) (71,731 ) Stock-based compensation — — — — (130,173 ) (130,173 ) Acquisition-related and other — — — — (9,829 ) (9,829 ) Legal reserves, occupancy tax and other — — — — (77,919 ) (77,919 ) Realized (gain) loss on revenue hedges (11,267 ) — — — — (11,267 ) Operating income (loss) $ 1,052,137 $ 17,880 $ 44,004 $ (17,433 ) $ (730,528 ) 366,060 Other expense, net (65,367 ) Income before income taxes 300,693 Provision for income taxes (84,335 ) Net income 216,358 Net loss attributable to noncontrolling interests 16,492 Net income attributable to Expedia, Inc. $ 232,850 |
Schedule of Revenue by Geographic Area | Geographic Information The following table presents revenue by geographic area, the United States and all other countries, based on the geographic location of our websites or points of sale for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, 2015 2014 2013 (In thousands) Revenue United States $ 3,703,302 $ 3,046,520 $ 2,510,162 All other countries 2,969,015 2,716,965 2,261,097 $ 6,672,317 $ 5,763,485 $ 4,771,259 |
Schedule of Property and Equipment by Geographic Area | The following table presents property and equipment, net for the United States and all other countries, as of December 31, 2015 and 2014: As of December 31, 2015 2014 (In thousands) Property and equipment, net United States $ 944,208 $ 446,044 All other countries 120,051 107,082 $ 1,064,259 $ 553,126 |
Valuation and Qualifying Acco48
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Changes in 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 Charges to Charges to (1) Deductions Balance at End (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. |
Quarterly Financial Informati49
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule Of Quarterly Financial Information | 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. |
Guarantor and Non-Guarantor S50
Guarantor and Non-Guarantor Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Statement of Operations Information | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2015 Parent Guarantor Non-Guarantor (1) Eliminations Consolidated (In thousands) Revenue $ — $ 5,194,549 $ 1,682,677 $ (204,909 ) $ 6,672,317 Costs and expenses: Cost of revenue — 1,009,785 308,463 (8,689 ) 1,309,559 Selling and marketing — 2,347,919 1,230,059 (196,892 ) 3,381,086 Technology and content — 584,560 245,495 189 830,244 General and administrative — 373,162 200,268 483 573,913 Amortization of intangible assets — 58,524 105,141 — 163,665 Legal reserves, occupancy tax and other — (104,587 ) — — (104,587 ) Restructuring and related reorganization charges — 76,422 28,449 — 104,871 Intercompany (income) expense, net — 742,010 (742,010 ) — — Operating income — 106,754 306,812 — 413,566 Other income (expense): Equity in pre-tax earnings of consolidated subsidiaries 839,779 870,108 — (1,709,887 ) — Gain on sale of business — — 508,810 — 508,810 Other, net (119,451 ) 64,576 58,461 — 3,586 Total other income, net 720,328 934,684 567,271 (1,709,887 ) 512,396 Income before income taxes 720,328 1,041,438 874,083 (1,709,887 ) 925,962 Provision for income taxes 44,137 (194,251 ) (53,100 ) — (203,214 ) Net income 764,465 847,187 820,983 (1,709,887 ) 722,748 Net loss attributable to noncontrolling interests — — 41,717 — 41,717 Net income attributable to Expedia, Inc. $ 764,465 $ 847,187 $ 862,700 $ (1,709,887 ) $ 764,465 Comprehensive income attributable to Expedia, Inc. $ 763,202 $ 822,898 $ 742,132 $ (1,709,887 ) $ 618,345 (1) Includes results through our disposal of eLong on May 22, 2015. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Revenue $ — $ 4,500,723 $ 1,389,979 $ (127,217 ) $ 5,763,485 Costs and expenses: Cost of revenue — 898,647 274,788 5,646 1,179,081 Selling and marketing — 1,913,719 1,027,798 (133,188 ) 2,808,329 Technology and content — 472,762 213,159 233 686,154 General and administrative — 243,793 181,228 352 425,373 Amortization of intangible assets — 1,848 77,767 — 79,615 Legal reserves, occupancy tax and other — 41,539 — — 41,539 Restructuring and related reorganization charges — 5,020 20,610 — 25,630 Intercompany (income) expense, net — 666,675 (666,415 ) (260 ) — Operating income — 256,720 261,044 — 517,764 Other income (expense): Equity in pre-tax earnings of consolidated subsidiaries 455,831 282,769 — (738,600 ) — Other, net (91,569 ) 34,223 4,223 — (53,123 ) Total other income (expense), net 364,262 316,992 4,223 (738,600 ) (53,123 ) Income before income taxes 364,262 573,712 265,267 (738,600 ) 464,641 Provision for income taxes 33,835 (110,929 ) (14,597 ) — (91,691 ) Net income 398,097 462,783 250,670 (738,600 ) 372,950 Net loss attributable to noncontrolling interests — — 25,147 — 25,147 Net income attributable to Expedia, Inc. $ 398,097 $ 462,783 $ 275,817 $ (738,600 ) $ 398,097 Comprehensive income attributable to Expedia, Inc. $ 398,097 $ 463,075 $ 118,554 $ (738,600 ) $ 241,126 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2013 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Revenue $ — $ 3,849,746 $ 970,087 $ (48,574 ) $ 4,771,259 Costs and expenses: Cost of revenue — 797,801 235,753 4,480 1,038,034 Selling and marketing — 1,492,370 756,767 (52,992 ) 2,196,145 Technology and content — 399,763 178,052 5 577,820 General and administrative — 216,551 160,594 (67 ) 377,078 Amortization of intangible assets — 3,042 68,689 — 71,731 Acquistion-related and other — — 66,472 — 66,472 Legal reserves, occupancy tax and other — 77,919 — — 77,919 Intercompany (income) expense, net — 731,867 (731,867 ) — — Operating income — 130,433 235,627 — 366,060 Other income (expense): Equity in pre-tax earnings of consolidated subsidiaries 285,456 234,869 — (520,325 ) — Other, net (83,006 ) 7,394 10,245 — (65,367 ) Total other income (expense), net 202,450 242,263 10,245 (520,325 ) (65,367 ) Income before income taxes 202,450 372,696 245,872 (520,325 ) 300,693 Provision for income taxes 30,400 (81,170 ) (33,565 ) — (84,335 ) Net income 232,850 291,526 212,307 (520,325 ) 216,358 Net loss attributable to noncontrolling interests — — 16,492 — 16,492 Net income attributable to Expedia, Inc. $ 232,850 $ 291,526 $ 228,799 $ (520,325 ) $ 232,850 Comprehensive income attributable to Expedia, Inc. $ 232,850 $ 290,857 $ 247,643 $ (520,325 ) $ 251,025 |
Schedule of Balance Sheet Information | CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) ASSETS Total current assets $ 233,340 $ 2,261,450 $ 1,201,064 $ (717,093 ) $ 2,978,761 Investment in subsidiaries 8,420,890 3,106,719 — (11,527,609 ) — Intangible assets, net — 1,974,968 818,986 — 2,793,954 Goodwill — 5,859,457 2,133,484 — 7,992,941 Other assets, net 15,670 1,381,837 354,482 (13,833 ) 1,738,156 TOTAL ASSETS $ 8,669,900 $ 14,584,431 $ 4,508,016 $ (12,258,535 ) $ 15,503,812 LIABILITIES AND STOCKHOLDERS’ EQUITY Total current liabilities $ 538,856 $ 5,511,639 $ 592,615 $ (717,093 ) $ 5,926,017 Long-term debt 3,201,277 — — — 3,201,277 Other liabilities — 620,685 181,421 (13,833 ) 788,273 Redeemable noncontrolling interests — — 658,478 — 658,478 Stockholders’ equity 4,929,767 8,452,107 3,075,502 (11,527,609 ) 4,929,767 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 8,669,900 $ 14,584,431 $ 4,508,016 $ (12,258,535 ) $ 15,503,812 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) ASSETS Total current assets $ 189,203 $ 3,938,831 $ 1,064,981 $ (2,268,526 ) $ 2,924,489 Investment in subsidiaries 4,689,302 1,338,089 — (6,027,391 ) — Intangible assets, net — 637,986 652,101 — 1,290,087 Goodwill — 2,436,533 1,519,368 — 3,955,901 Other assets, net 7,082 583,782 259,197 — 850,061 TOTAL ASSETS $ 4,885,587 $ 8,935,221 $ 3,495,647 $ (8,295,917 ) $ 9,020,538 LIABILITIES AND STOCKHOLDERS’ EQUITY Total current liabilities $ 1,245,071 $ 3,707,638 $ 1,502,432 $ (2,268,526 ) $ 4,186,615 Long-term debt 1,746,787 — — — 1,746,787 Other liabilities — 516,365 116,969 — 633,334 Redeemable noncontrolling interests — — 560,073 — 560,073 Stockholders’ equity 1,893,729 4,711,218 1,316,173 (6,027,391 ) 1,893,729 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 4,885,587 $ 8,935,221 $ 3,495,647 $ (8,295,917 ) $ 9,020,538 |
Schedule of Cash Flow Statement Information | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 Parent Guarantor Non-Guarantor Consolidated (In thousands) Operating activities: Net cash provided by operating activities $ — $ 624,327 $ 743,718 $ 1,368,045 Investing activities: Capital expenditures, including internal-use software and website development — (709,679 ) (77,362 ) (787,041 ) Purchases of investments — (473,538 ) (47,791 ) (521,329 ) Sales and maturities of investments — 327,191 83,732 410,923 Acquisitions, net of cash acquired (126,779 ) (1,873,079 ) (63,791 ) (2,063,649 ) Transfers (to) from related parties 126,779 (303,846 ) 177,067 — Proceeds from sale of business, net of cash divested and disposal costs — — 523,882 523,882 Other, net — 54,226 11,728 65,954 Net cash provided by (used in) investing activities — (2,978,725 ) 607,465 (2,371,260 ) Financing activities: Proceeds from issuance of long-term debt, net of debt issuance costs 1,441,860 — — 1,441,860 Purchases of treasury stock (60,546 ) — — (60,546 ) Proceeds from issuance of treasury stock 22,575 — — 22,575 Payment of dividends to stockholders (108,527 ) — — (108,527 ) Proceeds from exercise of equity awards and employee stock purchase plan 96,526 — 1,190 97,716 Withholding taxes for stock option exercises (85,033 ) — — (85,033 ) Transfers (to) from related parties (1,396,210 ) 2,350,385 (954,175 ) — Other, net 89,355 (11,998 ) 18,797 96,154 Net cash provided by (used in) financing activities — 2,338,387 (934,188 ) 1,404,199 Effect of exchange rate changes on cash and cash equivalents — (86,269 ) (41,116 ) (127,385 ) Net increase (decrease) in cash and cash equivalents — (102,280 ) 375,879 273,599 Cash and cash equivalents at beginning of year — 943,976 458,724 1,402,700 Cash and cash equivalents at end of year $ — $ 841,696 $ 834,603 $ 1,676,299 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 Parent Guarantor Non-Guarantor Consolidated (In thousands) Operating activities: Net cash provided by operating activities from continuing operations $ — $ 1,027,571 $ 339,388 $ 1,366,959 Investing activities: Capital expenditures, including internal-use software and website development — (281,696 ) (46,691 ) (328,387 ) Purchases of investments — (913,205 ) (281,005 ) (1,194,210 ) Sales and maturities of investments — 861,744 300,813 1,162,557 Acquisitions, net of cash acquired — — (560,668 ) (560,668 ) Other, net — (2,805 ) (744 ) (3,549 ) Net cash used in investing activities from continuing operations — (335,962 ) (588,295 ) (924,257 ) Financing activities: Proceeds from issuance of long-term debt, net of issuance costs 492,894 — — 492,894 Purchases of treasury stock (537,861 ) — — (537,861 ) Proceeds from issuance of treasury stock 20,404 20,404 Payment of dividends to stockholders (84,697 ) — — (84,697 ) Proceeds from exercise of equity awards and employee stock purchase plan 104,598 — 3,523 108,121 Transfers (to) from related parties (53,494 ) (287,394 ) 340,888 — Other, net 58,156 (2,124 ) (6,744 ) 49,288 Net cash provided by (used in) financing activities from continuing operations — (289,518 ) 337,667 48,149 Effect of exchange rate changes on cash and cash equivalents — (64,798 ) (44,386 ) (109,184 ) Net increase in cash and cash equivalents — 337,293 44,374 381,667 Cash and cash equivalents at beginning of year — 606,683 414,350 1,021,033 Cash and cash equivalents at end of year $ — $ 943,976 $ 458,724 $ 1,402,700 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2013 Parent Guarantor Non-Guarantor Consolidated (In thousands) Operating activities: Net cash provided by operating activities from continuing operations $ — $ 305,174 $ 458,026 $ 763,200 Investing activities: Capital expenditures, including internal-use software and website development — (243,428 ) (65,153 ) (308,581 ) Purchases of investments — (932,011 ) (284,580 ) (1,216,591 ) Sales and maturities of investments — 1,193,948 308,628 1,502,576 Acquisitions, net of cash acquired — — (541,247 ) (541,247 ) Other, net — 40,850 (2,520 ) 38,330 Net cash provided by (used in) investing activities from continuing operations — 59,359 (584,872 ) (525,513 ) Financing activities: Purchases of treasury stock (522,900 ) — — (522,900 ) Proceeds from issuance of treasury stock 25,273 — — 25,273 Payment of dividends to stockholders (75,760 ) — — (75,760 ) Proceeds from exercise of equity awards and employee stock purchase plan 52,134 — 4,702 56,836 Transfers (to) from related parties 482,975 (754,948 ) 271,973 — Other, net 38,278 7,565 (21,808 ) 24,035 Net cash provided by (used in) financing activities from continuing operations — (747,383 ) 254,867 (492,516 ) Net cash provided by (used in) continuing operations — (382,850 ) 128,021 (254,829 ) Net cash provided by discontinued operations — 13,637 — 13,637 Effect of exchange rate changes on cash and cash equivalents — (31,260 ) 324 (30,936 ) Net increase (decrease) in cash and cash equivalents — (400,473 ) 128,345 (272,128 ) Cash and cash equivalents at beginning of year — 1,007,156 286,005 1,293,161 Cash and cash equivalents at end of year $ — $ 606,683 $ 414,350 $ 1,021,033 |
Significant Accounting Polici51
Significant Accounting Policies - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | |
Significant Accounting Policies [Line Items] | |||||
Cost method investments | $ 299 | $ 12 | |||
Income tax refund | $ 14 | ||||
Loyalty program liability | 364 | 235 | |||
Advertising expense | 2,100 | 1,600 | $ 1,200 | ||
Prepaid marketing expenses | $ 16 | $ 24 | |||
2.5% Senior Notes Due 2022 | |||||
Significant Accounting Policies [Line Items] | |||||
Senior unsecured notes principal amount | € | € 650 | € 650 | |||
Senior notes, maturity date | 2022-06 | ||||
Senior notes, interest rate | 2.50% | ||||
Stock Options | |||||
Significant Accounting Policies [Line Items] | |||||
Vesting period | 4 years | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Definite lived intangible assets, estimated useful life | 1 year | ||||
Minimum | RSUs | |||||
Significant Accounting Policies [Line Items] | |||||
Vesting period | 3 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Definite lived intangible assets, estimated useful life | 12 years | ||||
Maximum | RSUs | |||||
Significant Accounting Policies [Line Items] | |||||
Vesting period | 4 years | ||||
Computer Equipment | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 3 years | ||||
Computer Equipment | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 5 years | ||||
Software Development | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 3 years | ||||
Software Development | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 5 years | ||||
Furniture and Other Equipment | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 3 years | ||||
Furniture and Other Equipment | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 5 years |
Acquisitions and Other Invest52
Acquisitions and Other Investments - Additional Information (Detail) AUD / shares in Units, $ / shares in Units, $ in Thousands, € in Millions, AUD in Millions | Dec. 16, 2015USD ($) | Dec. 15, 2015USD ($)$ / sharesshares | Sep. 17, 2015USD ($)$ / shares | Mar. 10, 2015USD ($) | Jan. 23, 2015USD ($) | Mar. 08, 2013USD ($)shares | Jan. 31, 2016USD ($) | Nov. 30, 2014USD ($) | Nov. 30, 2014AUD | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($)shares | Dec. 31, 2015USD ($)Business | Dec. 31, 2014USD ($) | Nov. 30, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 14, 2015shares | Nov. 30, 2014AUDAUD / shares | Nov. 13, 2014USD ($)$ / shares | Mar. 08, 2013EUR (€) | Dec. 31, 2012USD ($) | |||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Unrecognized stock-based compensation expense related to unvested stock-based awards | $ 345,000 | $ 345,000 | |||||||||||||||||||||||||||||||||||
Goodwill | 7,992,941 | $ 3,955,901 | 7,992,941 | $ 3,955,901 | $ 3,663,674 | ||||||||||||||||||||||||||||||||
Revenue | 1,698,567 | $ 1,937,753 | $ 1,662,600 | $ 1,373,397 | 1,355,978 | $ 1,712,504 | $ 1,494,632 | $ 1,200,371 | 6,672,317 | 5,763,485 | 4,771,259 | ||||||||||||||||||||||||||
Operating loss | 29,477 | [1] | $ 344,998 | [1] | $ 90,092 | [1] | $ (51,001) | [1] | 94,706 | [1] | $ 296,836 | [1] | $ 129,220 | [1] | $ (2,998) | [1] | 413,566 | 517,764 | 366,060 | ||||||||||||||||||
Restructuring charges | 23,000 | 25,630 | 104,871 | [2] | 25,630 | [2] | |||||||||||||||||||||||||||||||
Business acquisitions, equity interest to fair value gain | 77,400 | ||||||||||||||||||||||||||||||||||||
Cost method investment | 299,000 | 12,000 | 299,000 | 12,000 | |||||||||||||||||||||||||||||||||
Acquisition-related costs | 47,000 | ||||||||||||||||||||||||||||||||||||
Business acquisition, cash paid to settle portion of employee compensation plan | 9,829 | ||||||||||||||||||||||||||||||||||||
Business acquisition, amount expensed at acquisition | [2] | 66,472 | |||||||||||||||||||||||||||||||||||
Stock-based compensation | 178,068 | 85,011 | 130,173 | ||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest | 658,478 | 560,073 | 658,478 | 560,073 | 364,871 | $ 13,473 | |||||||||||||||||||||||||||||||
Core OTAs | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Goodwill | 4,717,371 | 3,133,495 | 4,717,371 | 3,133,495 | 2,781,296 | ||||||||||||||||||||||||||||||||
Decolar.com, Inc. | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Cost method investment | $ 270,000 | ||||||||||||||||||||||||||||||||||||
Home Away Inc | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Aggregate purchase consideration | $ 3,562,329 | ||||||||||||||||||||||||||||||||||||
Business acquisitions, cash price per share | $ / shares | $ 10.15 | ||||||||||||||||||||||||||||||||||||
Business combination, price acquiree stock shares exchange | 0.2065 | ||||||||||||||||||||||||||||||||||||
Number of common shares of the acquiree, outstanding | shares | 97,000,000 | ||||||||||||||||||||||||||||||||||||
Business acquisition, common stock consideration, shares | shares | 20,000,000 | ||||||||||||||||||||||||||||||||||||
Business acquisitions, equity interest | $ 19,513 | ||||||||||||||||||||||||||||||||||||
Unrecognized stock-based compensation expense related to unvested stock-based awards | 106,000 | ||||||||||||||||||||||||||||||||||||
Goodwill | 2,602,712 | ||||||||||||||||||||||||||||||||||||
Convertible senior notes debt | $ 402,500 | ||||||||||||||||||||||||||||||||||||
Convertible senior notes Interest Rate | 0.125% | ||||||||||||||||||||||||||||||||||||
Convertible senior notes maturity year | 2,019 | ||||||||||||||||||||||||||||||||||||
Debt instrument redemption price percentage | 100.00% | ||||||||||||||||||||||||||||||||||||
Warrants acquired | shares | 7,700,000 | ||||||||||||||||||||||||||||||||||||
Warrants, settled amount | $ 23,000 | ||||||||||||||||||||||||||||||||||||
Revenue | 20,000 | ||||||||||||||||||||||||||||||||||||
Operating loss | (14,000) | ||||||||||||||||||||||||||||||||||||
Fees contingent upon change of control | $ 33,000 | ||||||||||||||||||||||||||||||||||||
Business acquisition, cash consideration paid to shareholders | 1,027,061 | ||||||||||||||||||||||||||||||||||||
Business acquisition, cash acquired | 900,281 | ||||||||||||||||||||||||||||||||||||
Business acquisition, deferred tax liabilities acquired | $ 108,477 | ||||||||||||||||||||||||||||||||||||
Weighted average life of acquired intangible assets | 5 years 8 months 23 days | ||||||||||||||||||||||||||||||||||||
Business acquisition, common stock consideration | $ 2,515,755 | ||||||||||||||||||||||||||||||||||||
Orbitz Worldwide, Inc. | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Aggregate purchase consideration | $ 1,813,524 | ||||||||||||||||||||||||||||||||||||
Business acquisitions, cash price per share | $ / shares | $ 12 | ||||||||||||||||||||||||||||||||||||
Business acquisitions, equity interest | $ 16,717 | ||||||||||||||||||||||||||||||||||||
Goodwill | 1,443,521 | ||||||||||||||||||||||||||||||||||||
Revenue | 196,000 | ||||||||||||||||||||||||||||||||||||
Operating loss | (163,000) | ||||||||||||||||||||||||||||||||||||
Fees contingent upon change of control | 25,000 | ||||||||||||||||||||||||||||||||||||
Business acquisition, cash consideration paid to shareholders | 1,362,362 | ||||||||||||||||||||||||||||||||||||
Business acquisitions, debt repayment | 432,231 | ||||||||||||||||||||||||||||||||||||
Post acquisition employee restricted stock award, net of estimated forfeitures, fair value | 49,000 | ||||||||||||||||||||||||||||||||||||
Stock-based compensation recognized | 34,000 | ||||||||||||||||||||||||||||||||||||
Restructuring charges | 92,000 | ||||||||||||||||||||||||||||||||||||
Business combination, continuity incentive | $ 30,000 | ||||||||||||||||||||||||||||||||||||
Business combination, continuity incentive remaining payment period | 180 days | ||||||||||||||||||||||||||||||||||||
Business acquisition, cash acquired | $ 194,515 | ||||||||||||||||||||||||||||||||||||
Business acquisition, deferred tax liabilities acquired | $ 113,268 | ||||||||||||||||||||||||||||||||||||
Weighted average life of acquired intangible assets | 6 years 11 days | ||||||||||||||||||||||||||||||||||||
Business consideration, fair value of other consideration | $ 2,214 | ||||||||||||||||||||||||||||||||||||
Orbitz Worldwide, Inc. | Core OTAs | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Goodwill | $ 1,443,521 | ||||||||||||||||||||||||||||||||||||
AAE Travel Private Limited | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 25.00% | ||||||||||||||||||||||||||||||||||||
Additional equity interest, approximate cash consideration | $ 94,000 | ||||||||||||||||||||||||||||||||||||
Total ownership in venture before acquisition of additional equity interest | 50.00% | ||||||||||||||||||||||||||||||||||||
Total ownership in venture after acquisition of additional equity interest | 75.00% | ||||||||||||||||||||||||||||||||||||
Business acquisitions, equity interest to fair value gain | $ 77,000 | ||||||||||||||||||||||||||||||||||||
Percentage of noncontrolling interest | 25.00% | ||||||||||||||||||||||||||||||||||||
Fair value of noncontrolling interest | $ 64,000 | ||||||||||||||||||||||||||||||||||||
Travelocity | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Business acquisition, cash consideration paid to shareholders | $ 280,000 | ||||||||||||||||||||||||||||||||||||
Other Acquisitions During Period | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Aggregate purchase consideration | 85,000 | ||||||||||||||||||||||||||||||||||||
Business acquisitions, equity interest | 7,000 | ||||||||||||||||||||||||||||||||||||
Goodwill | 196,431 | 70,000 | 196,431 | 70,000 | |||||||||||||||||||||||||||||||||
Business acquisition, cash consideration paid to shareholders | $ 9,000 | 77,000 | |||||||||||||||||||||||||||||||||||
Business acquisitions, equity interest to fair value gain | 3,000 | ||||||||||||||||||||||||||||||||||||
Number of business acquisition | Business | 3 | ||||||||||||||||||||||||||||||||||||
Deductible for tax purposes | 82,000 | $ 82,000 | |||||||||||||||||||||||||||||||||||
Business acquisition, net assets (liabilities) acquired | (23,366) | [3] | (19,000) | (23,366) | [3] | (19,000) | |||||||||||||||||||||||||||||||
Business acquisition, cash acquired | 48,000 | 48,000 | |||||||||||||||||||||||||||||||||||
Business acquisition, deferred tax liabilities acquired | 7,910 | $ 17,000 | $ 7,910 | 17,000 | |||||||||||||||||||||||||||||||||
Intangible assets with definite lives | $ 51,000 | ||||||||||||||||||||||||||||||||||||
Weighted average life of acquired intangible assets | 5 years 9 months 18 days | 6 years 1 month 6 days | |||||||||||||||||||||||||||||||||||
Wotif Group | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Aggregate purchase consideration | $ 568,000 | AUD 652 | |||||||||||||||||||||||||||||||||||
Business acquisitions, cash price per share | (per share) | AUD 3.30 | $ 2.87 | |||||||||||||||||||||||||||||||||||
Goodwill | 350,093 | $ 350,093 | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | 7,000 | ||||||||||||||||||||||||||||||||||||
Business acquisition, total cash paid | AUD 703 | $ 612,000 | |||||||||||||||||||||||||||||||||||
Special dividend distributed | AUD | AUD 51 | ||||||||||||||||||||||||||||||||||||
Business acquisition, net assets (liabilities) acquired | [4] | (43,429) | (43,429) | ||||||||||||||||||||||||||||||||||
Business acquisition, deferred tax liabilities acquired | $ 2,908 | $ 2,908 | |||||||||||||||||||||||||||||||||||
Weighted average life of acquired intangible assets | 7 years 9 months 18 days | 7 years 9 months 18 days | |||||||||||||||||||||||||||||||||||
Trivago | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Aggregate purchase consideration | 570,000 | ||||||||||||||||||||||||||||||||||||
Business acquisition, common stock consideration, shares | shares | 875,200 | ||||||||||||||||||||||||||||||||||||
Goodwill | $ 633,436 | ||||||||||||||||||||||||||||||||||||
Business acquisition, cash consideration paid to shareholders | $ 554,000 | ||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 63.00% | ||||||||||||||||||||||||||||||||||||
Percentage of noncontrolling interest | 37.00% | ||||||||||||||||||||||||||||||||||||
Fair value of noncontrolling interest | $ 343,984 | ||||||||||||||||||||||||||||||||||||
Business acquisition, total cash paid | 564,000 | € 434 | |||||||||||||||||||||||||||||||||||
Business acquisition, net assets (liabilities) acquired | [5] | 19,064 | |||||||||||||||||||||||||||||||||||
Business acquisition, deferred tax liabilities acquired | $ 111,379 | ||||||||||||||||||||||||||||||||||||
Weighted average life of acquired intangible assets | 3 years 8 months 12 days | ||||||||||||||||||||||||||||||||||||
Percentage of fully diluted basis acquired | 61.60% | ||||||||||||||||||||||||||||||||||||
Business acquisition, cash paid to settle portion of employee compensation plan | 9,829 | ||||||||||||||||||||||||||||||||||||
Business acquisition, common stock consideration | € | € 43 | ||||||||||||||||||||||||||||||||||||
Business consideration, fair value of other consideration | $ 15,000 | ||||||||||||||||||||||||||||||||||||
Business acquisition, increment of shares issued during the period | shares | 175,040 | 175,040 | |||||||||||||||||||||||||||||||||||
Business acquisition, amount expensed at acquisition | $ 66,472 | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | $ 56,643 | ||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest | $ 654,000 | $ 654,000 | |||||||||||||||||||||||||||||||||||
Revenue related to acquisition as percentage of consolidated revenue | 4.00% | ||||||||||||||||||||||||||||||||||||
Trivago | During the first quarter of 2016 | Maximum | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Minority shareholders right to sell on remaining shares | 50.00% | ||||||||||||||||||||||||||||||||||||
Trivago | During the first quarter of 2018 | Maximum | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Minority shareholders right to sell on remaining shares | 100.00% | ||||||||||||||||||||||||||||||||||||
Subsequent Event | Home Away Inc | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Warrants, settled amount | $ 8,000 | ||||||||||||||||||||||||||||||||||||
Subsequent Event | Home Away Inc | Convertible Notes Payable | |||||||||||||||||||||||||||||||||||||
Business Acquisitions And Investments [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt, amount repurchased | $ 377,000 | ||||||||||||||||||||||||||||||||||||
[1] | During the fourth quarters of 2015 and 2014, we recognized $23 million and $26 million related to restructuring and related reorganization charges. | ||||||||||||||||||||||||||||||||||||
[2] | Includes stock-based compensation as follows: Cost of revenue $ 5,307 $ 3,921 $ 3,752 Selling and marketing 33,164 18,067 16,190 Technology and content 26,766 22,100 20,465 General and administrative 80,082 40,923 33,123 Restructuring and related reorganization charges 32,749 - - Acquisition-related and other - - 56,643 | ||||||||||||||||||||||||||||||||||||
[3] | Includes cash acquired of $41 million. | ||||||||||||||||||||||||||||||||||||
[4] | Includes cash acquired of $36 million. | ||||||||||||||||||||||||||||||||||||
[5] | Includes cash acquired of $13 million. |
Summary of Fair Value of Assets
Summary of Fair Value of Assets Acquired and Liabilities Assumed in Conjunction with Acquisition (Detail) $ in Thousands, € in Millions, AUD in Millions | Dec. 15, 2015USD ($) | Sep. 17, 2015USD ($) | Mar. 08, 2013USD ($) | Nov. 30, 2014USD ($) | Nov. 30, 2014AUD | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Mar. 08, 2013EUR (€) | ||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 7,992,941 | $ 3,955,901 | $ 3,663,674 | ||||||||
Home Away Inc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of shares of Expedia common stock issued to HomeAway stockholders and equity award holders | $ 2,515,755 | ||||||||||
Cash consideration for shares | 1,027,061 | ||||||||||
Replacement restricted stock units and stock options attributable to pre-acquisition service | 19,513 | ||||||||||
Total purchase consideration | 3,562,329 | ||||||||||
Cash | 900,281 | ||||||||||
Other current assets | [1] | 54,665 | |||||||||
Long-term assets | 81,564 | ||||||||||
Intangible assets with definite lives | [2] | 555,600 | |||||||||
Intangible assets with indefinite lives | [3] | 196,900 | |||||||||
Goodwill | 2,602,712 | ||||||||||
Deferred revenue | (182,978) | ||||||||||
Other current liabilities | (104,316) | ||||||||||
Debt | (402,500) | ||||||||||
Other long-term liabilities | (31,122) | ||||||||||
Deferred tax liabilities | (108,477) | ||||||||||
Total | $ 3,562,329 | ||||||||||
Orbitz Worldwide, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration for shares | $ 1,362,362 | ||||||||||
Replacement restricted stock units and stock options attributable to pre-acquisition service | 16,717 | ||||||||||
Total purchase consideration | 1,813,524 | ||||||||||
Cash | 194,515 | ||||||||||
Other current assets | 33,728 | ||||||||||
Long-term assets | 115,163 | ||||||||||
Intangible assets with definite lives | [4] | 515,384 | |||||||||
Intangible assets with indefinite lives | [3] | 166,800 | |||||||||
Goodwill | 1,443,521 | ||||||||||
Other long-term liabilities | (54,627) | ||||||||||
Deferred tax liabilities | (113,268) | ||||||||||
Total | 1,813,524 | ||||||||||
Settlement of Orbitz debt | 432,231 | ||||||||||
Other consideration | 2,214 | ||||||||||
Accounts receivable, net | [5] | 147,517 | |||||||||
Current liabilities | $ (635,209) | ||||||||||
Other Acquisitions During Period | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration for shares | 9,000 | 77,000 | |||||||||
Replacement restricted stock units and stock options attributable to pre-acquisition service | 7,000 | ||||||||||
Total purchase consideration | 85,000 | ||||||||||
Cash | 48,000 | ||||||||||
Intangible assets with definite lives | [6] | 146,126 | |||||||||
Intangible assets with indefinite lives | 163,400 | ||||||||||
Goodwill | 196,431 | 70,000 | |||||||||
Deferred tax liabilities | (7,910) | (17,000) | |||||||||
Total | [7] | 474,681 | |||||||||
Net assets | $ (23,366) | [8] | $ (19,000) | ||||||||
Wotif Group | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total purchase consideration | $ 568,000 | AUD 652 | |||||||||
Intangible assets with definite lives | [9] | 138,292 | |||||||||
Intangible assets with indefinite lives | 125,762 | ||||||||||
Goodwill | 350,093 | ||||||||||
Deferred tax liabilities | (2,908) | ||||||||||
Total | 567,810 | ||||||||||
Net assets | [10] | $ (43,429) | |||||||||
Trivago | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of shares of Expedia common stock issued to HomeAway stockholders and equity award holders | € | € 43 | ||||||||||
Cash consideration for shares | $ 554,000 | ||||||||||
Total purchase consideration | 570,000 | ||||||||||
Intangible assets with definite lives | [11] | 136,281 | |||||||||
Intangible assets with indefinite lives | 220,416 | ||||||||||
Goodwill | 633,436 | ||||||||||
Deferred tax liabilities | (111,379) | ||||||||||
Total | 553,834 | ||||||||||
Other consideration | $ 15,000 | ||||||||||
Net assets | [12] | 19,064 | |||||||||
Redeemable noncontrolling interest | $ (343,984) | ||||||||||
[1] | Gross accounts receivable was $25 million, of which $1 million was estimated to be uncollectible. | ||||||||||
[2] | Acquired definite-lived intangible assets primarily consist of supplier relationships, customer relationships and developed technology assets with average lives ranging from less than one to twelve years and an estimated combined weighted average useful life of 5.73 years. | ||||||||||
[3] | Acquired indefinite-lived intangible assets primarily consist of trade names and trademarks. | ||||||||||
[4] | Acquired definite-lived intangible assets primarily consist of customer relationship assets, developed technology assets and partner relationship assets with estimated useful lives ranging from less than one to ten years with a weighted average life of 6.03 years. | ||||||||||
[5] | Gross accounts receivable was $157 million, of which $9 million was estimated to be uncollectible. | ||||||||||
[6] | Acquired definite-lived intangible assets primarily consist of customer relationship, reacquired right and supplier relationship assets and have estimated useful lives of between four and ten years with a weighted average life of 5.8 years. | ||||||||||
[7] | The total purchase price includes noncash consideration of $99 million related to an equity method investment, which is currently consolidated upon our acquisition of a controlling interest, as discussed above, with the remainder paid in cash during the period. | ||||||||||
[8] | Includes cash acquired of $41 million. | ||||||||||
[9] | Acquired definite-lived intangible assets primarily consist of supplier contracts and customer relationships and have estimated useful lives of between less than one year and 10 years with a weighted average life of 7.8 years. | ||||||||||
[10] | Includes cash acquired of $36 million. | ||||||||||
[11] | Acquired definite-lived intangible assets primarily consist of technology, partner relationship and non-compete agreement assets and have estimated useful lives of between three and seven years with a weighted average life of 3.7 years. | ||||||||||
[12] | Includes cash acquired of $13 million. |
Summary of Fair Value of Asse54
Summary of Fair Value of Assets Acquired and Liabilities Assumed in Conjunction with Acquisition (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 15, 2015 | Sep. 17, 2015 | Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 1 year | |||||
Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 12 years | |||||
Home Away Inc | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, accounts receivable gross | $ 25 | |||||
Business combination, accounts receivable estimated to uncollectible | $ 1 | |||||
Weighted average life of acquired intangible assets | 5 years 8 months 23 days | |||||
Home Away Inc | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 1 year | |||||
Home Away Inc | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 12 years | |||||
Orbitz Worldwide, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, accounts receivable gross | $ 157 | |||||
Business combination, accounts receivable estimated to uncollectible | $ 9 | |||||
Weighted average life of acquired intangible assets | 6 years 11 days | |||||
Orbitz Worldwide, Inc. | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 1 year | |||||
Orbitz Worldwide, Inc. | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 10 years | |||||
Other Acquisitions During Period | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average life of acquired intangible assets | 5 years 9 months 18 days | 6 years 1 month 6 days | ||||
Business acquisition, cash acquired | $ 41 | |||||
Equity method investment, non-cash consideration | $ 99 | |||||
Other Acquisitions During Period | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 4 years | |||||
Other Acquisitions During Period | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 10 years | |||||
Wotif Group | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average life of acquired intangible assets | 7 years 9 months 18 days | |||||
Business acquisition, cash acquired | $ 36 | |||||
Wotif Group | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 1 year | |||||
Wotif Group | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 10 years | |||||
Trivago | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average life of acquired intangible assets | 3 years 8 months 12 days | |||||
Business acquisition, cash acquired | $ 13 | |||||
Trivago | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 3 years | |||||
Trivago | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of acquired intangible assets | 7 years |
Supplemental Pro Forma Informat
Supplemental Pro Forma Information (Detail) - Home Away Inc. and Orbitz Worldwide, Inc. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Revenue | $ 7,838,863 | $ 7,110,688 |
Net income attributable to Expedia, Inc. | $ 816,634 | $ 301,331 |
Disposition of Business - Addit
Disposition of Business - Additional Information (Detail) - USD ($) $ in Thousands | May. 22, 2015 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Pre-tax gain on disposal of business | $ 508,810 | |
Gain on disposal of business , after -tax | 395,000 | |
Disposal Group, Not Discontinued Operations | eLong, Inc | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Percentage of ownership sold | 62.40% | |
Consideration of business sold | $ 671,000 | |
Pre-tax gain on disposal of business | 508,810 | |
Gain on disposal of business , after -tax | 395,000 | |
Disposal Group, Not Discontinued Operations | eLong, Inc | Gain on sale of business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Consideration of business sold, net of costs to sell | $ 666,000 | |
Disposal Group, Not Discontinued Operations | eLong, Inc | Long-term investments and other assets | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Held in Escrow | $ 67,000 |
Carrying Amounts of Assets and
Carrying Amounts of Assets and Liabilities Immediately Preceding Disposition (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | May. 22, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Non-redeemable noncontrolling interest divested | $ 65,373 | $ 109,462 | ||
Disposal Group, Not Discontinued Operations | eLong, Inc | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total current assets | [1] | $ 350,196 | ||
Total long-term assets | 137,709 | |||
Total assets divested | 487,905 | |||
Total current liabilities | 187,296 | |||
Total long-term liabilities | 5,782 | |||
Total liabilities divested | 193,078 | |||
Components of accumulated other comprehensive income divested | 45,259 | |||
Non-redeemable noncontrolling interest divested | 92,550 | |||
Net carrying value divested | $ 157,018 | |||
[1] | Includes cash and cash equivalents of approximately $74 million. |
Carrying Amounts of Assets an58
Carrying Amounts of Assets and Liabilities Immediately Preceding Disposition (Parenthetical) (Detail) $ in Millions | May. 22, 2015USD ($) |
Disposal Group, Not Discontinued Operations | eLong, Inc | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash and cash equivalents | $ 74 |
Amounts Related to eLong in Con
Amounts Related to eLong in Consolidated Results of Operations (Detail) - Disposal Group, Not Discontinued Operations - eLong, Inc - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating loss | [1] | $ (85,536) | $ (50,757) | $ (28,857) |
Income (loss) before taxes | [2] | 438,843 | (40,535) | (17,031) |
Income (loss) before taxes attributable to Expedia, Inc. | [2] | 465,400 | (25,078) | (7,669) |
Net income (loss) attributable to Expedia, Inc. | [3] | $ 349,183 | $ (27,119) | $ (17,518) |
[1] | Includes stock-based compensation and amortization of intangible assets of approximately $20 million, $17 million and $11 million for 2015, 2014 and 2013, which are included within Corporate & Eliminations in Note 19 - Segment Information. | |||
[2] | The year ended December 31, 2015 includes the pre-tax gain of $509 million related to the gain on sale. | |||
[3] | The year ended December 31, 2015 includes the after-tax gain of $395 million related to the gain on sale. |
Amounts Related to eLong in C60
Amounts Related to eLong in Consolidated Results of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain on disposal of business | $ 508,810 | ||
Gain on disposal of business, after-tax | 395,000 | ||
eLong, Inc | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Stock-based compensation and intangible amortization | $ 20,000 | $ 17,000 | $ 11,000 |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 353,914 | $ 944,520 |
Foreign Exchange Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contracts, Assets | 8,045 | 9,176 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 218,340 | 161,059 |
Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 29,126 | 298,968 |
Restricted cash | 19,980 | |
Investments | 312,762 | |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 98,403 | 142,575 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 218,340 | 161,059 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 218,340 | 161,059 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 135,574 | 783,461 |
Fair Value, Inputs, Level 2 | Foreign Exchange Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contracts, Assets | 8,045 | 9,176 |
Fair Value, Inputs, Level 2 | Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 29,126 | 298,968 |
Restricted cash | 19,980 | |
Investments | 312,762 | |
Fair Value, Inputs, Level 2 | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 98,403 | $ 142,575 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments, short-term | $ 34,000,000 | $ 43,000,000 | |
Available for sale investments, long-term | 65,000,000 | 100,000,000 | |
Gross unrealized gains | 1,000,000 | 1,000,000 | |
Gross unrealized losses | 1,000,000 | 1,000,000 | |
Net gains(losses) from foreign currency forward contracts | 46,000,000 | 10,000,000 | $ 47,000,000 |
Foreign Exchange Forward Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount of foreign currency derivatives | 1,900,000,000 | ||
Recurring Basis | Foreign Exchange Forward Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency forward contracts, Assets | $ 8,045,000 | $ 9,176,000 |
Components of Property and Equi
Components of Property and Equipment Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 2,102,164 | $ 1,533,144 |
Less: accumulated depreciation | (1,201,744) | (1,011,085) |
Projects in progress | 163,839 | 31,067 |
Property and equipment, net | 1,064,259 | 553,126 |
Software Development | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,220,822 | 1,041,924 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 485,074 | 313,738 |
Furniture and Other Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 65,939 | 42,110 |
Buildings and Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 199,604 | $ 135,372 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 130,725 |
Property and Equipment Net - Ad
Property and Equipment Net - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||||
Capitalized software development costs, net of accumulated amortization | $ 484,000 | $ 386,000 | ||
Amortization of capitalized software development costs | 230,000 | 185,000 | $ 139,000 | |
Capital expenditures, including internal-use software and website development | $ 787,041 | $ 328,387 | $ 308,581 | |
New Corporate Headquarters | Purchase and Sale Agreement | ||||
Property, Plant and Equipment [Line Items] | ||||
Capital expenditures, including internal-use software and website development | $ 229,000 |
Schedule of Goodwill and Intang
Schedule of Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill | $ 7,992,941 | $ 3,955,901 | $ 3,663,674 |
Intangible assets with indefinite lives | 1,459,854 | 976,638 | |
Intangible assets with definite lives, net | 1,334,100 | 313,449 | |
Goodwill and intangible assets | $ 10,786,895 | $ 5,245,988 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Net - Additional Information (Detail) - USD ($) | Oct. 01, 2015 | Oct. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill impairments | $ 0 | $ 0 | |||
Amortization of intangible assets | $ 163,665,000 | $ 79,615,000 | $ 71,731,000 | ||
Core OTAs | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Accumulated goodwill impairment losses | $ 2,500,000,000 | $ 2,500,000,000 |
Changes in Goodwill by Reportab
Changes in Goodwill by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 3,955,901 | $ 3,663,674 |
Additions | 4,243,133 | 418,408 |
Deductions | (72,693) | |
Foreign exchange translation | (133,400) | (126,181) |
Goodwill, Ending Balance | 7,992,941 | 3,955,901 |
Core OTAs | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 3,133,495 | 2,781,296 |
Additions | 1,633,711 | 402,752 |
Foreign exchange translation | (49,835) | (50,553) |
Goodwill, Ending Balance | 4,717,371 | 3,133,495 |
Trivago | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 593,419 | 633,436 |
Additions | 6,241 | 1,045 |
Foreign exchange translation | (60,083) | (41,062) |
Goodwill, Ending Balance | 539,577 | 593,419 |
Egencia | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 156,324 | 194,651 |
Foreign exchange translation | (23,043) | (38,327) |
Goodwill, Ending Balance | 133,281 | 156,324 |
Home Away Inc | ||
Goodwill [Line Items] | ||
Additions | 2,602,712 | |
Goodwill, Ending Balance | 2,602,712 | |
eLong, Inc | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 72,663 | 54,291 |
Additions | 469 | 14,611 |
Deductions | (72,693) | |
Foreign exchange translation | $ (439) | 3,761 |
Goodwill, Ending Balance | $ 72,663 |
Components of Intangible Assets
Components of Intangible Assets with Definite Lives (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 2,321,165 | $ 1,180,402 |
Accumulated Amortization | (987,065) | (866,953) |
Net | 1,334,100 | 313,449 |
Supplier Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 655,414 | 357,022 |
Accumulated Amortization | (223,666) | (200,257) |
Net | 431,748 | 156,765 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 490,584 | 257,045 |
Accumulated Amortization | (258,261) | (216,841) |
Net | 232,323 | 40,204 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 613,277 | 110,302 |
Accumulated Amortization | (73,248) | (29,225) |
Net | 540,029 | 81,077 |
Domain Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 115,102 | 51,592 |
Accumulated Amortization | (34,758) | (28,630) |
Net | 80,344 | 22,962 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 446,788 | 404,441 |
Accumulated Amortization | (397,132) | (392,000) |
Net | $ 49,656 | $ 12,441 |
Estimated Future Amortization E
Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 317,909 | |
2,017 | 260,127 | |
2,018 | 247,729 | |
2,019 | 147,768 | |
2,020 | 113,183 | |
2021 and thereafter | 247,384 | |
Net | $ 1,334,100 | $ 313,449 |
Long Term Debt Outstanding (Det
Long Term Debt Outstanding (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Long-term debt | [1] | $ 3,201,277 | $ 1,746,787 |
7.456% Senior Notes Due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 500,000 | 500,000 | |
5.95% Senior Notes Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 749,561 | 749,485 | |
4.5% Senior Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 497,534 | $ 497,302 | |
2.5% Senior Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 707,653 | ||
5.0% Senior Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 746,529 | ||
[1] | Excludes debt acquired in the HomeAway acquisition included within accrued expenses and other current liabilities as of December 31, 2015. For further information, see Note 3 - Acquisitions and Other Investments. |
Long Term Debt Outstanding (Par
Long Term Debt Outstanding (Parenthetical) (Detail) - EUR (€) € in Millions | Dec. 31, 2015 | Jun. 30, 2015 |
2.5% Senior Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes principal amount | € 650 | € 650 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Feb. 10, 2016USD ($) | Jun. 30, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) |
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Accrued interest related to senior notes | $ 52,000,000 | $ 39,000,000 | ||||
Uncommitted Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility borrowings outstanding | € | € 0 | |||||
Uncommitted Credit Facility | International Subsidiary One | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | € | € 50,000,000 | |||||
Credit facility borrowings outstanding | € | € 20,000,000 | |||||
Uncommitted Credit Facility | International Subsidiary Two | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | 5,600,000 | |||||
Credit facility borrowings outstanding | 5,000,000 | |||||
Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 1,000,000,000 | |||||
Line of credit facility, expiration date | 2019-09 | |||||
Credit facility borrowings outstanding | $ 0 | 0 | ||||
Interest, on drawn amount | LIBOR plus 150 basis points | |||||
Commitment fee on undrawn amounts | 0.20% | |||||
Basis points added to LIBOR rate | 1.50% | |||||
Letters of credit issued under the credit facility | $ 29,000,000 | 15,000,000 | ||||
4.5% Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured notes principal amount | $ 500,000,000 | |||||
Senior notes, maturity date | 2024-08 | |||||
Senior notes, interest rate | 4.50% | 4.50% | ||||
Debt instrument redemption price percentage | 100.00% | |||||
Redemption at option of Company | We may redeem the 4.5% Notes at our option at any time in whole or from time to time in part. If we elect to redeem the 4.5% Notes prior to May 15, 2024, we may redeem them at a redemption price of 100% of the principal plus accrued interest, plus a "make-whole" premium. If we elect to redeem the 4.5% Notes on or after May 15, 2024, we may redeem them at a redemption price of 100% of the principal plus accrued interest. | |||||
Senior notes issued price percentage | 99.444% | 99.444% | ||||
Fair value of senior notes | $ 487,000,000 | 504,000,000 | ||||
4.5% Senior Notes Due 2024 | Upon the occurrence of certain change of control triggering events | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price percentage | 101.00% | |||||
2.5% Senior Notes Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured notes principal amount | € | € 650,000,000 | € 650,000,000 | ||||
Senior notes, maturity date | 2022-06 | |||||
Senior notes, interest rate | 2.50% | |||||
Debt instrument redemption price percentage | 100.00% | |||||
Redemption at option of Company | We may redeem the 2.5% Notes at our option, at whole or in part, at any time or from time to time. If we elect to redeem the 2.5% Notes prior to March 3, 2022, we may redeem them at a specified “make-whole" premium. If we elect to redeem the 2.5% Notes on or after March 3, 2022, we may redeem them at a redemption price of 100% of the principal plus accrued and unpaid interest. Subject to certain limited exceptions, all payments of interest and principal for the 2.5% Notes will be made in Euros. | |||||
Senior notes issued price percentage | 99.525% | |||||
Fair value of senior notes | $ 705,000,000 | € 644,000,000 | ||||
2.5% Senior Notes Due 2022 | Upon the occurrence of certain change of control triggering events | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price percentage | 101.00% | |||||
7.456% Senior Notes Due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured notes principal amount | $ 500,000,000 | |||||
Senior notes, maturity date | 2018-08 | |||||
Senior notes, interest rate | 7.456% | 7.456% | ||||
Debt instrument redemption price percentage | 100.00% | |||||
Redemption at option of Company | At any time Expedia may redeem the 7.456% Notes at a redemption price of 100% of the principal plus accrued interest, plus a "make-whole" premium, in whole or in part. | |||||
Fair value of senior notes | $ 555,000,000 | 581,000,000 | ||||
5.95% Senior Notes Due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured notes principal amount | $ 750,000,000 | |||||
Senior notes, maturity date | 2020-08 | |||||
Senior notes, interest rate | 5.95% | 5.95% | ||||
Debt instrument redemption price percentage | 100.00% | |||||
Redemption at option of Company | We may redeem the 5.95% Notes at a redemption price of 100% of the principal plus accrued interest, plus a "make-whole" premium, in whole or in part. | |||||
Senior notes issued price percentage | 99.893% | 99.893% | ||||
Fair value of senior notes | $ 827,000,000 | $ 840,000,000 | ||||
5.95% Senior Notes Due 2020 | Upon the occurrence of certain change of control triggering events | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price percentage | 101.00% | |||||
5.0% Senior Notes Due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured notes principal amount | $ 750,000,000 | |||||
Senior notes, maturity date | 2026-02 | |||||
Senior notes, interest rate | 5.00% | 5.00% | ||||
Debt instrument redemption price percentage | 100.00% | |||||
Redemption at option of Company | We may redeem the 5.0% Notes at our option at any time in whole or from time to time in part. If we elect to redeem the 5.0% Notes prior to November 12, 2025, we may redeem them at a redemption price of 100% of the principal plus accrued interest, plus a "make-whole" premium. If we elect to redeem the 5.0% Notes on or after November 12, 2025, we may redeem them at a redemption price of 100% of the principal plus accrued interest. | |||||
Senior notes issued price percentage | 99.535% | 99.535% | ||||
Senior notes, potential incremental interest | 0.25% | |||||
Fair value of senior notes | $ 750,000,000 | |||||
Maximum | Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Permissible leverage ratio | 325.00% | 325.00% | ||||
Minimum | Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Permissible interest coverage ratio | 325.00% | 325.00% | ||||
Subsequent Event | Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 1,500,000,000 | |||||
Commitment fee on undrawn amounts | 0.175% | |||||
Basis points added to LIBOR rate | 1.375% | |||||
Line of credit facility, extended expiration date | 2021-02 | |||||
Reduction of basis points added to LIBOR rate | 0.125% | |||||
Reduction of commitment fee on undrawn amounts | 0.025% | |||||
Subsequent Event | Maximum | Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Permissible leverage ratio | 375.00% | |||||
Subsequent Event | Minimum | Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Permissible interest coverage ratio | 300.00% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employees contributions maximum | 50.00% | ||
Percentage of company matches of employees contributions maximum | 3.00% | ||
Employee vesting period | Two years of service | ||
Employer contributions for benefit plans | $ 41 | $ 36 | $ 28 |
Stock-Based Awards and Other 74
Stock-Based Awards and Other Equity Instruments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for new stock-based awards, shares | 10,000,000 | ||
Stock options granted during the period | 7,572,000 | 4,113,000 | 4,016,000 |
Total stock-based compensation | $ 178,068 | $ 85,011 | $ 130,173 |
Stock-based compensation tax benefit | 45,000 | 20,000 | 17,000 |
Cash received from stock-based award exercises | 89,000 | 101,000 | |
Income tax benefit associated with employees exercise of stock-based awards | $ 130,000 | $ 69,000 | $ 52,000 |
Share-based payment award, options, exercises in period, weighted average exercise price | $ 34.57 | $ 25.66 | $ 18.10 |
Unrecognized stock-based compensation expense related to unvested stock-based awards | $ 345,000 | ||
Unvested stock-based awards, which is expected to be recognized in expense weighted-average period (in years) | 3 years | ||
Employee Stock Purchase Plan Twenty Thirteen | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock purchase price as percentage of fair market value | 85.00% | ||
Eligible employees contribution of base compensation | 10.00% | ||
Employee stock purchase plan, shares purchased | 95,000 | 102,000 | 69,000 |
Employee stock ownership plan, average purchase price of shares purchased | $ 93.30 | $ 68.70 | $ 46.31 |
Shares of our common stock reserved for issuance | 1,200,000 | ||
Performance Shares | Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted during the period | 1,100,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock price, as of year end | $ 124.30 | ||
Total intrinsic value of stock options exercised, value | $ 314,000 | $ 208,000 | $ 117,000 |
Vesting period | 4 years | ||
Stock Options | Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted during the period | 2,700,000 | ||
Employment agreement | 5 years | ||
Stock Options | Chairman And Senior Executive | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, exercisable, number of shares | 1,900,000 | ||
Share-based payment award, options, exercises in period, weighted average exercise price | $ 30.38 | ||
Share-based compensation, net of forfeitures | 600,000 | ||
Stock Options | Chairman And Senior Executive | Withheld and Concurrently Cancelled by the Company to Cover the Weighted Average Exercise Price | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares withheld and cancelled to cover the weighted average exercise price | 500,000 | ||
Stock Options | Chairman And Senior Executive | Withheld and Concurrently Cancelled to Cover Tax Obligations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares withheld and cancelled to cover the weighted average exercise price | 800,000 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vested and released, value | $ 60,000 | $ 12,000 | $ 29,000 |
RSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Balance as of January 1 | 14,435 | 15,427 | 15,236 |
Options, Granted | 7,572 | 4,113 | 4,016 |
Options, Exercised | (4,201) | (3,804) | (2,730) |
Options, Cancelled | (751) | (1,301) | (1,095) |
Options, Balance as of December 31 | 17,055 | 14,435 | 15,427 |
Weighted Average Exercise Price, January 1 | $ 49.33 | $ 36.03 | $ 25.24 |
Options, Exercisable as of December 31, 2015 | 4,880 | ||
Weighted Average Exercise Price, Granted | $ 94.13 | 78.70 | 65.29 |
Options, Vested and expected to vest after December 31, 2015 | 15,980 | ||
Weighted Average Exercise Price, Exercised | $ 34.57 | 25.66 | 18.10 |
Weighted Average Exercise Price, Cancelled | 74.06 | 53.69 | 37.87 |
Weighted Average Exercise Price, December 31 | 71.77 | $ 49.33 | $ 36.03 |
Weighted Average Exercise Price, Exercisable as of December 31, 2015 | 42.32 | ||
Weighted Average Exercise Price, Vested and expected to vest after December 31, 2015 | $ 70.70 | ||
Remaining Contractual Life (In years), Balance as of December 31, 2015 | 4 years 10 months 24 days | ||
Remaining Contractual Life (In years), Exercisable as of December 31, 2015 | 3 years 2 months 12 days | ||
Remaining Contractual Life (In years), Vested and expected to vest after December 31, 2015 | 4 years 10 months 24 days | ||
Aggregate intrinsic value, Balance as of December 31, 2015 | $ 896,377 | ||
Aggregate intrinsic value, Exercisable as of December 31, 2015 | 400,120 | ||
Aggregate intrinsic value, Vested and expected to vest after December 31, 2015 | $ 856,574 |
Weighted Average Assumptions of
Weighted Average Assumptions of Black-Scholes and Monte Carlo Option-Pricing Models (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.19% | 1.13% | 0.71% |
Expected volatility | 41.48% | 42.97% | 44.81% |
Expected life (in years) | 4 years 22 days | 4 years 15 days | 4 years 26 days |
Dividend yield | 0.78% | 0.76% | 0.80% |
Weighted-average estimated fair value of options granted during the year | $ 30.56 | $ 25.80 | $ 21.96 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units, Balance as of January 1 | 337 | 432 | 1,218 |
Granted | 1,643 | 108 | 216 |
Vested | (493) | (159) | (480) |
Cancelled | (91) | (44) | (522) |
Restricted Stock Units, Balance as of December 31 | 1,396 | 337 | 432 |
Weighted Average Grant-Date Fair Value, Balance as of January 1 | $ 61.97 | $ 50.64 | $ 29.57 |
Granted | 123.42 | 80.94 | 63.04 |
Vested | 103.73 | 45.90 | 23.29 |
Cancelled | 67.11 | 55.52 | 86.10 |
Weighted Average Grant-Date Fair Value, Balance as of December 31 | $ 119.20 | $ 61.97 | $ 50.64 |
Domestic and Foreign Income Los
Domestic and Foreign Income Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
U.S. | $ 24,397 | $ 176,820 | $ 26,888 |
Foreign | 901,565 | 287,821 | 273,805 |
Income before income taxes | $ 925,962 | $ 464,641 | $ 300,693 |
Summary of Provision for Income
Summary of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Current income tax expense, Federal | $ 154,050 | $ 120,541 | $ 38,209 |
Current income tax expense, State | 1,440 | 6,645 | (402) |
Current income tax expense, Foreign | 69,359 | 43,536 | 47,300 |
Current income tax expense | 224,849 | 170,722 | 85,107 |
Deferred income tax (benefit) expense, Federal | (6,865) | (47,390) | 12,371 |
Deferred income tax (benefit) expense, State | 2,156 | (2,419) | 445 |
Deferred income tax (benefit) expense, Foreign | (16,926) | (29,222) | (13,588) |
Deferred income tax (benefit) expense | (21,635) | (79,031) | (772) |
Income tax expense | $ 203,214 | $ 91,691 | $ 84,335 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ||||
Reduction in current income tax payable attributable to stock-based compensation | $ 130,000 | $ 69,000 | $ 52,000 | |
Valuation allowance | 122,850 | $ 50,748 | ||
Valuation allowance increase | 72,000 | |||
Undistributed earnings of certain foreign subsidiaries | $ 1,500,000 | |||
Effective interest rate of federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits | $ 171,177 | $ 110,561 | $ 109,712 | $ 102,305 |
Unrecognized tax benefits that would impact effective tax rate | 138,000 | 86,000 | ||
Uncertain tax positions, interest and penalties | 10,000 | 6,000 | ||
Interest (benefit) expense, net of federal benefit and penalties | 3,142 | $ (8,327) | $ (2,733) | |
Federal | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 186,000 | |||
State and Local | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 167,000 | |||
Foreign | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 541,000 | |||
Indefinite foreign net operating loss carryforwards | 487,000 | |||
Foreign net operating loss carryforwards subject to expiration | $ 54,000 | |||
Foreign | Minimum | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards expiration dates | 2,017 | |||
Foreign | Maximum | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards expiration dates | 2,022 | |||
Federal and State | Minimum | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards expiration dates | 2,019 | |||
Federal and State | Maximum | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards expiration dates | 2,035 |
Components of Deferred Tax Asse
Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets Liabilities [Line Items] | ||
Provision for accrued expenses | $ 95,499 | $ 85,778 |
Loyalty rewards reserve | 132,980 | 84,373 |
Occupancy tax reserve | 16,358 | 22,813 |
Net operating loss and tax credit carryforwards | 202,220 | 49,091 |
Stock-based compensation | 56,729 | 39,344 |
Fair value of debt adjustment | 24,770 | |
Other | 28,766 | 21,637 |
Total deferred tax assets | 557,322 | 303,036 |
Less valuation allowance | (122,850) | (50,748) |
Net deferred tax assets | 434,472 | 252,288 |
Prepaid merchant bookings and prepaid expenses | (41,006) | (61,737) |
Intangible assets | (758,976) | (387,124) |
Property and equipment | (87,308) | (70,497) |
Other | (5,565) | (6,566) |
Total deferred tax liabilities | (892,855) | (525,924) |
Net deferred tax liability | $ (458,383) | $ (273,636) |
Schedule of Statutory Federal I
Schedule of Statutory Federal Income Tax Rate to Income from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Income tax expense at the federal statutory rate of 35% | $ 324,087 | $ 162,624 | $ 105,243 |
Foreign tax rate differential | (162,784) | (81,371) | (87,729) |
Unrecognized tax benefits and related interest | 33,362 | (1,625) | 12,096 |
Change in valuation allowance | 27,320 | 13,914 | 19,167 |
Pay-to-play penalties | (11,222) | 1,322 | 14,404 |
Acquisition related costs | 12,545 | 56 | |
trivago acquisition stock-based compensation | 19,825 | ||
Other, net | (20,094) | (3,229) | 1,329 |
Income tax expense | $ 203,214 | $ 91,691 | $ 84,335 |
Income Tax Reconciliation of Be
Income Tax Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Balance, beginning of year | $ 110,561 | $ 109,712 | $ 102,305 |
Increases to tax positions related to the current year | 33,880 | 28,416 | 21,899 |
Increases to tax positions related to prior years | 26,219 | 4,469 | 5,064 |
Decreases to tax positions related to prior years | (3,732) | ||
Reductions due to lapsed statute of limitations | (2,525) | (23,709) | (4,134) |
Settlements during current year | (100) | (8,957) | |
Interest and penalties | 3,142 | (8,327) | (2,733) |
Balance, end of year | $ 171,177 | $ 110,561 | $ 109,712 |
Reconciliation of Redeemable No
Reconciliation of Redeemable Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Redeemable Noncontrolling Interest [Line Items] | |||
Balance, beginning of the period | $ 560,073 | $ 364,871 | $ 13,473 |
Acquisition of redeemable noncontrolling interest | 6,829 | 343,984 | |
Purchase of subsidiary shares at fair value | (14,923) | ||
Net loss attributable to noncontrolling interests | (15,417) | (9,690) | (7,130) |
Fair value adjustments | 188,579 | 259,984 | 26,614 |
Currency translation adjustments and other | (81,586) | (55,092) | 2,853 |
Balance, end of period | $ 658,478 | $ 560,073 | $ 364,871 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Detail) | Feb. 10, 2016$ / shares | Dec. 31, 2015Vote / shares$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2012shares | Dec. 31, 2010shares | Dec. 31, 2006shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized and remaining under the repurchase program | 11,200,000 | |||||
Class B Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized | 400,000,000 | 400,000,000 | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Number of voting rights to each shareholder, per share | Vote / shares | 10 | |||||
Series A Preferred Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Preferred stock outstanding | 0 | 0 | ||||
Common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized | 1,600,000,000 | 1,600,000,000 | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Number of voting rights to each shareholder, per share | Vote / shares | 1 | |||||
Total number of directors elected by holders of common stock, voting as single class, percentage | 25.00% | |||||
eLong, Inc | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ownership interest percentage | 64.00% | |||||
AirAsia Expedia | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Owned equity investments percentage | 75.00% | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized share repurchase | 10,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||
Fiscal Year 2015, 2012, 2010, and 2006 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized share repurchase | 70,000,000 | |||||
Subsequent Event | Dividend Declared | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Declaration Date | 2016-02 | |||||
Dividend Per Share | $ / shares | $ 0.24 | |||||
Payment Date | Mar. 30, 2016 | |||||
Record Date | Mar. 10, 2016 |
Shares Repurchased (Detail)
Shares Repurchased (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share Repurchases [Line Items] | ||||
Number of shares repurchased | 525,504 | 7,040,621 | 9,259,400 | |
Average price per share | $ 85.27 | $ 76.26 | $ 55.59 | |
Total cost of repurchases | [1] | $ 44,822 | $ 537,088 | $ 514,907 |
[1] | Amount excludes transaction costs. |
Summary of Dividends Declared (
Summary of Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends Payable [Line Items] | |||
Payment of dividends to stockholders | $ 108,527 | $ 84,697 | $ 75,760 |
February 4, 2015 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Feb. 4, 2015 | ||
Dividend Per Share | $ 0.18 | ||
Record Date | Mar. 10, 2015 | ||
Payment of dividends to stockholders | $ 22,895 | ||
Payment Date | Mar. 26, 2015 | ||
April 29, 2015 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Apr. 29, 2015 | ||
Dividend Per Share | $ 0.18 | ||
Record Date | May 28, 2015 | ||
Payment of dividends to stockholders | $ 23,096 | ||
Payment Date | Jun. 18, 2015 | ||
July 29, 2015 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Jul. 29, 2015 | ||
Dividend Per Share | $ 0.24 | ||
Record Date | Aug. 27, 2015 | ||
Payment of dividends to stockholders | $ 31,182 | ||
Payment Date | Sep. 17, 2015 | ||
October 29, 2015 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Oct. 29, 2015 | ||
Dividend Per Share | $ 0.24 | ||
Record Date | Nov. 19, 2015 | ||
Payment of dividends to stockholders | $ 31,354 | ||
Payment Date | Dec. 10, 2015 | ||
February 5, 2014 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Feb. 5, 2014 | ||
Dividend Per Share | $ 0.15 | ||
Record Date | Mar. 10, 2014 | ||
Payment of dividends to stockholders | $ 19,602 | ||
Payment Date | Mar. 27, 2014 | ||
April 30, 2014 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Apr. 30, 2014 | ||
Dividend Per Share | $ 0.15 | ||
Record Date | May 30, 2014 | ||
Payment of dividends to stockholders | $ 19,231 | ||
Payment Date | Jun. 19, 2014 | ||
July 30, 2014 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Jul. 30, 2014 | ||
Dividend Per Share | $ 0.18 | ||
Record Date | Aug. 27, 2014 | ||
Payment of dividends to stockholders | $ 22,944 | ||
Payment Date | Sep. 17, 2014 | ||
October 27, 2014 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Oct. 27, 2014 | ||
Dividend Per Share | $ 0.18 | ||
Record Date | Nov. 20, 2014 | ||
Payment of dividends to stockholders | $ 22,920 | ||
Payment Date | Dec. 11, 2014 | ||
February 5, 2013 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Feb. 5, 2013 | ||
Dividend Per Share | $ 0.13 | ||
Record Date | Mar. 11, 2013 | ||
Payment of dividends to stockholders | $ 17,983 | ||
Payment Date | Mar. 28, 2013 | ||
April 24, 2013 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Apr. 24, 2013 | ||
Dividend Per Share | $ 0.13 | ||
Record Date | May 30, 2013 | ||
Payment of dividends to stockholders | $ 17,638 | ||
Payment Date | Jun. 19, 2013 | ||
July 24, 2013 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Jul. 24, 2013 | ||
Dividend Per Share | $ 0.15 | ||
Record Date | Aug. 28, 2013 | ||
Payment of dividends to stockholders | $ 20,459 | ||
Payment Date | Sep. 18, 2013 | ||
October 28, 2013 | |||
Dividends Payable [Line Items] | |||
Declaration Date | Oct. 28, 2013 | ||
Dividend Per Share | $ 0.15 | ||
Record Date | Nov. 21, 2013 | ||
Payment of dividends to stockholders | $ 19,680 | ||
Payment Date | Dec. 12, 2013 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency translation adjustments, net of tax | [1] | $ (284,767) | $ (138,715) |
Net unrealized gain (loss) on available for sale securities, net of tax | (127) | (59) | |
Accumulated other comprehensive loss | $ (284,894) | $ (138,774) | |
[1] | Foreign currency translation adjustments, net of tax, includes foreign currency transaction losses at December 31, 2015 of $1 million ($2 million before tax) associated with our 2.5% Notes. The 2.5% Notes are Euro-denominated debt designated as hedges of certain of our Euro-denominated net assets. See Note 2 - Significant Accounting Policies for more information. The remaining balance in currency translation adjustments excludes income taxes as a result of our current intention to indefinitely reinvest the earnings of our international subsidiaries outside of the United States. |
Accumulated Other Comprehensi89
Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - 2.5% Senior Notes Due 2022 $ in Millions | Dec. 31, 2015USD ($) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Foreign currency translation losses, net of tax | $ 1 |
Foreign currency translation losses, before tax | $ 2 |
Effects of Changes in Noncontro
Effects of Changes in Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | |||||||||||
Net income attributable to Expedia, Inc. | $ (12,538) | $ 283,216 | $ 449,644 | $ 44,143 | $ 65,969 | $ 257,059 | $ 89,373 | $ (14,304) | $ 764,465 | $ 398,097 | $ 232,850 |
Net transfers from noncontrolling interest | 5,807 | 25,023 | 16,675 | ||||||||
Change from net income attributable to Expedia, Inc. and transfers from noncontrolling interest | 760,267 | 422,187 | 239,778 | ||||||||
Additional paid-in capital | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Net increase(decrease) in Expedia, Inc.'s paid-in capital for newly issued eLong shares and other equity activity | (4,198) | 24,090 | 6,928 | ||||||||
Net transfers from noncontrolling interest | $ (4,198) | $ 24,090 | $ 6,928 |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Disclosure [Line Items] | |||||||||||
Net income attributable to Expedia, Inc. | $ (12,538) | $ 283,216 | $ 449,644 | $ 44,143 | $ 65,969 | $ 257,059 | $ 89,373 | $ (14,304) | $ 764,465 | $ 398,097 | $ 232,850 |
Earnings per share attributable to Expedia, Inc. available to common stockholders: | |||||||||||
Basic | $ 5.87 | $ 3.09 | $ 1.73 | ||||||||
Diluted | $ 5.70 | $ 2.99 | $ 1.67 | ||||||||
Weighted average number of shares outstanding: Basic | 130,159 | 128,912 | 134,912 | ||||||||
Options to purchase common stock | 3,685 | 4,149 | 4,495 | ||||||||
Other dilutive securities | 174 | 107 | 186 | ||||||||
Weighted average number of shares outstanding, Diluted | 134,018 | 133,168 | 139,593 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding stock awards excluded from calculation of diluted earnings per share | 2 | 4 | 4 |
Restructuring and Related Reo93
Restructuring and Related Reorganization Charges - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related reorganization charges | $ 23,000,000 | $ 25,630,000 | $ 104,871,000 | $ 25,630,000 | |||
Scenario, Forecast | Minimum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected restructuring charges | $ 30,000,000 | ||||||
Scenario, Forecast | Maximum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected restructuring charges | $ 40,000,000 | ||||||
[1] | Includes stock-based compensation as follows: Cost of revenue $ 5,307 $ 3,921 $ 3,752 Selling and marketing 33,164 18,067 16,190 Technology and content 26,766 22,100 20,465 General and administrative 80,082 40,923 33,123 Restructuring and related reorganization charges 32,749 - - Acquisition-related and other - - 56,643 |
Restructuring and Related Reo94
Restructuring and Related Reorganization Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Accrued liability Beginning Balance | $ 23,775 | |||||
Charges | $ 23,000 | $ 25,630 | 104,871 | [1] | $ 25,630 | [1] |
Payments | (47,796) | (1,112) | ||||
Non-cash items | (33,838) | (743) | ||||
Accrued liability Ending Balance | 47,012 | 23,775 | 47,012 | 23,775 | ||
Employee Severance and Benefits | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accrued liability Beginning Balance | 10,117 | |||||
Charges | 66,255 | 10,783 | ||||
Payments | (29,388) | (572) | ||||
Non-cash items | (1,095) | (94) | ||||
Accrued liability Ending Balance | 45,889 | 10,117 | 45,889 | 10,117 | ||
Stock Based Compensation | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 32,749 | |||||
Non-cash items | (32,749) | |||||
Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accrued liability Beginning Balance | 13,658 | |||||
Charges | 5,867 | 14,847 | ||||
Payments | (18,408) | (540) | ||||
Non-cash items | (649) | |||||
Non-cash items | 6 | |||||
Accrued liability Ending Balance | $ 1,123 | $ 13,658 | $ 1,123 | $ 13,658 | ||
[1] | Includes stock-based compensation as follows: Cost of revenue $ 5,307 $ 3,921 $ 3,752 Selling and marketing 33,164 18,067 16,190 Technology and content 26,766 22,100 20,465 General and administrative 80,082 40,923 33,123 Restructuring and related reorganization charges 32,749 - - Acquisition-related and other - - 56,643 |
Other Income Expense (Detail)
Other Income Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Component Of Other Income And Expense [Line Items] | |||
Foreign exchange rate gains (losses), net | $ 24,787 | $ 6,069 | $ (473) |
Noncontrolling investment basis adjustment | 77,400 | 2,783 | |
Equity gains (losses) in unconsolidated affiliates | (13) | 2,743 | 2,909 |
Other | 10,912 | 6,083 | (5,224) |
Total | $ 113,086 | $ 17,678 | $ (2,788) |
Schedule of Commitments and Obl
Schedule of Commitments and Obligations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Commitment And Contingencies [Line Items] | |
Total | $ 492,065 |
Less than 1 year | 387,628 |
1 to 3 years | 98,135 |
3 to 5 years | 6,237 |
More than 5 years | 65 |
Purchase Obligations | |
Commitment And Contingencies [Line Items] | |
Total | 244,848 |
Less than 1 year | 157,071 |
1 to 3 years | 82,043 |
3 to 5 years | 5,734 |
Guarantees | |
Commitment And Contingencies [Line Items] | |
Total | 192,155 |
Less than 1 year | 179,348 |
1 to 3 years | 12,807 |
Letters Of Credit | |
Commitment And Contingencies [Line Items] | |
Total | 55,062 |
Less than 1 year | 51,209 |
1 to 3 years | 3,285 |
3 to 5 years | 503 |
More than 5 years | $ 65 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Dec. 23, 2015USD ($) | May. 26, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)LegalMatter | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2009USD ($) |
Commitment And Contingencies [Line Items] | |||||||
Lease rental expense | $ 109 | $ 96 | $ 84 | ||||
Lease obligations, latest maturity year | 2,026 | ||||||
Litigation relating to occupancy tax | |||||||
Commitment And Contingencies [Line Items] | |||||||
Number of lawsuits filed by cities, counties and states involving hotel occupancy taxes | LegalMatter | 94 | ||||||
Number of lawsuits currently active | LegalMatter | 23 | ||||||
Number of lawsuits dismissed to date | LegalMatter | 39 | ||||||
Number of dismissals based on finding that defendant was not subject to local hotel occupancy tax or the local government lacked standing to pursue claims | LegalMatter | 25 | ||||||
Reserve for legal contingencies | $ 43 | $ 62 | |||||
Legal Reserves, Occupancy Tax and Other | |||||||
Commitment And Contingencies [Line Items] | |||||||
Recovery of costs | 24 | ||||||
HAWAII | Litigation Related to Other Taxes | |||||||
Commitment And Contingencies [Line Items] | |||||||
Pay-to-play occupancy and other tax payments | 171 | ||||||
Tax refunds received | $ 132 | ||||||
Tax paid, net of refunds | 44 | ||||||
HAWAII | Litigation Related to Other Taxes | Orbitz Worldwide, Inc. | |||||||
Commitment And Contingencies [Line Items] | |||||||
Tax refunds received | $ 22 | ||||||
HAWAII | Excise Tax Related | Litigation Related to Other Taxes | |||||||
Commitment And Contingencies [Line Items] | |||||||
Pay-to-play occupancy and other tax payments | 78 | ||||||
HAWAII | Penalties | Litigation Related to Other Taxes | |||||||
Commitment And Contingencies [Line Items] | |||||||
Pay-to-play occupancy and other tax payments | 41 | ||||||
HAWAII | Accrued Interest | Litigation Related to Other Taxes | |||||||
Commitment And Contingencies [Line Items] | |||||||
Pay-to-play occupancy and other tax payments | $ 52 | ||||||
HAWAII | Tax Year 2012 | Litigation Related to Other Taxes | |||||||
Commitment And Contingencies [Line Items] | |||||||
Tax assessments | 26 | ||||||
HAWAII | Tax Year 2012 | Litigation Related to Other Taxes | Orbitz Worldwide, Inc. | |||||||
Commitment And Contingencies [Line Items] | |||||||
Tax assessments | 6 | ||||||
HAWAII | 2000 through 2012 | Litigation Related to Other Taxes | |||||||
Commitment And Contingencies [Line Items] | |||||||
Tax assessments | 39 | ||||||
HAWAII | 2000 through 2012 | Litigation Related to Other Taxes | Orbitz Worldwide, Inc. | |||||||
Commitment And Contingencies [Line Items] | |||||||
Tax assessments | 10 | ||||||
HAWAII | 2000 through 2012 | Duplicative Assessment | Litigation Related to Other Taxes | |||||||
Commitment And Contingencies [Line Items] | |||||||
Tax assessments | 9.3 | ||||||
HAWAII | Tax Year 2013 | Litigation Related to Other Taxes | |||||||
Commitment And Contingencies [Line Items] | |||||||
Tax assessments | 34 | ||||||
HAWAII | Tax Year 2013 | Litigation Related to Other Taxes | Orbitz Worldwide, Inc. | |||||||
Commitment And Contingencies [Line Items] | |||||||
Tax assessments | 5 | ||||||
HAWAII | 2000 through 2014 | Litigation Related to Other Taxes Agency | |||||||
Commitment And Contingencies [Line Items] | |||||||
Tax assessments | $ 12 | ||||||
City of San Francisco | |||||||
Commitment And Contingencies [Line Items] | |||||||
Pay-to-play occupancy and other tax payments | $ 25.5 | $ 48 | |||||
City of San Francisco | Orbitz Worldwide, Inc. | |||||||
Commitment And Contingencies [Line Items] | |||||||
Pay-to-play occupancy and other tax payments | $ 4.6 |
Estimated Future Minimum Rental
Estimated Future Minimum Rental Payments Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 111,645 |
2,017 | 101,878 |
2,018 | 92,621 |
2,019 | 65,842 |
2,020 | 45,236 |
2021 and thereafter | 109,075 |
Total | $ 526,297 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Percentage of board members to be elected by separate class votes | 25.00% | ||
Capital expenditures | $ 787,041 | $ 328,387 | $ 308,581 |
Stock issued, aggregate value | $ 22,575 | $ 20,404 | $ 25,273 |
Liberty | |||
Related Party Transaction [Line Items] | |||
Percentage of total number of directors on Board that Liberty Interactive can nominate | 20.00% | ||
Number of directors multiple | 5 | ||
Common stock issued from treasury stock | 264,841 | 264,608 | 467,672 |
Treasury stock reissued, price per share | $ 85.24 | $ 77.11 | $ 54.04 |
Stock issued, aggregate value | $ 23,000 | $ 20,000 | $ 25,000 |
Aircraft | |||
Related Party Transaction [Line Items] | |||
Ownership interest of airplanes | $ 34,000 | $ 36,000 | |
Airplane One | Expedia, Inc | |||
Related Party Transaction [Line Items] | |||
Airplane ownership interest | 50.00% | ||
Airplane One | IAC | |||
Related Party Transaction [Line Items] | |||
Airplane ownership interest | 50.00% | ||
Airplane Two | Expedia, Inc | |||
Related Party Transaction [Line Items] | |||
Airplane ownership interest | 50.00% | ||
Capital expenditures | $ 25,000 | ||
Airplane Two | Expedia, Inc | Minimum | |||
Related Party Transaction [Line Items] | |||
Estimated useful life (in years) | 10 years | ||
Airplane Two | IAC | |||
Related Party Transaction [Line Items] | |||
Airplane ownership interest | 50.00% | ||
Common stock | |||
Related Party Transaction [Line Items] | |||
Common stock, Shares outstanding | 137,459,000 | 114,267,000 | |
Common stock | Liberty | Liberty USA Holdings, LLC. | |||
Related Party Transaction [Line Items] | |||
Common stock, Shares outstanding | 10,800,000 | ||
Class B Common Stock | |||
Related Party Transaction [Line Items] | |||
Common stock, Shares outstanding | 12,800,000 | 12,800,000 | |
Class B Common Stock | Liberty | Liberty USA Holdings, LLC. | |||
Related Party Transaction [Line Items] | |||
Common stock, Shares outstanding | 12,800,000 | ||
Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Combined voting power | 54.00% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 4 | |||
Home Away Inc | ||||
Segment Reporting Information [Line Items] | ||||
Business acquisition agreement date | Dec. 15, 2015 | |||
eLong, Inc | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation and intangible amortization | $ | $ 20 | $ 17 | $ 11 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Third-party revenue | $ 1,698,567 | $ 1,937,753 | $ 1,662,600 | $ 1,373,397 | $ 1,355,978 | $ 1,712,504 | $ 1,494,632 | $ 1,200,371 | $ 6,672,317 | $ 5,763,485 | $ 4,771,259 | |||||||||
Revenue | 6,672,317 | 5,763,485 | 4,771,259 | |||||||||||||||||
Adjusted EBITDA | 1,103,111 | 1,024,788 | 878,723 | |||||||||||||||||
Depreciation | (336,680) | (265,817) | (211,744) | |||||||||||||||||
Amortization of intangible assets | (163,665) | (79,615) | (71,731) | |||||||||||||||||
Stock-based compensation | (178,068) | (85,011) | (130,173) | |||||||||||||||||
Acquisition-related and other | (9,829) | |||||||||||||||||||
Legal reserves, occupancy tax and other | 104,587 | (41,539) | (77,919) | |||||||||||||||||
Restructuring and related reorganization charges | (72,122) | (25,630) | ||||||||||||||||||
Realized (gain) loss on revenue hedges | (43,597) | (9,412) | (11,267) | |||||||||||||||||
Operating income | 29,477 | [1] | 344,998 | [1] | 90,092 | [1] | (51,001) | [1] | 94,706 | [1] | 296,836 | [1] | 129,220 | [1] | (2,998) | [1] | 413,566 | 517,764 | 366,060 | |
Other income (expense), net | 512,396 | (53,123) | (65,367) | |||||||||||||||||
Income before income taxes | 925,962 | 464,641 | 300,693 | |||||||||||||||||
Provision for income taxes | (203,214) | (91,691) | (84,335) | |||||||||||||||||
Net income | 722,748 | 372,950 | 216,358 | |||||||||||||||||
Net loss attributable to noncontrolling interests | 41,717 | 25,147 | 16,492 | |||||||||||||||||
Net income attributable to Expedia, Inc. | $ (12,538) | $ 283,216 | $ 449,644 | $ 44,143 | $ 65,969 | $ 257,059 | $ 89,373 | $ (14,304) | 764,465 | 398,097 | 232,850 | |||||||||
Corporate & Eliminations | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Intersegment revenue | (214,632) | (132,964) | (42,755) | |||||||||||||||||
Revenue | (214,632) | (132,964) | (42,755) | |||||||||||||||||
Adjusted EBITDA | (509,747) | (400,788) | (359,400) | |||||||||||||||||
Depreciation | (116,850) | (98,206) | (81,476) | |||||||||||||||||
Amortization of intangible assets | (163,665) | (79,615) | (71,731) | |||||||||||||||||
Stock-based compensation | (178,068) | (85,011) | (130,173) | |||||||||||||||||
Acquisition-related and other | (9,829) | |||||||||||||||||||
Legal reserves, occupancy tax and other | 104,587 | (41,539) | (77,919) | |||||||||||||||||
Restructuring and related reorganization charges | (72,122) | (25,630) | ||||||||||||||||||
Operating income | (935,865) | (730,789) | (730,528) | |||||||||||||||||
Core OTAs | Operating Segments | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Third-party revenue | 5,877,213 | 4,905,150 | 4,069,284 | |||||||||||||||||
Revenue | 5,877,213 | 4,905,150 | 4,069,284 | |||||||||||||||||
Adjusted EBITDA | 1,600,042 | 1,387,386 | 1,171,863 | |||||||||||||||||
Depreciation | (189,318) | (139,509) | (108,459) | |||||||||||||||||
Realized (gain) loss on revenue hedges | (43,597) | (9,412) | (11,267) | |||||||||||||||||
Operating income | 1,367,127 | 1,238,465 | 1,052,137 | |||||||||||||||||
Trivago | Operating Segments | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Third-party revenue | 333,024 | 280,555 | 173,039 | |||||||||||||||||
Intersegment revenue | 214,632 | 132,964 | 42,755 | |||||||||||||||||
Revenue | 547,656 | 413,519 | 215,794 | |||||||||||||||||
Adjusted EBITDA | 2,856 | 3,917 | 18,450 | |||||||||||||||||
Depreciation | (2,113) | (1,360) | (570) | |||||||||||||||||
Operating income | 743 | 2,557 | 17,880 | |||||||||||||||||
Egencia | Operating Segments | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Third-party revenue | 400,115 | 399,704 | 364,923 | |||||||||||||||||
Revenue | 400,115 | 399,704 | 364,923 | |||||||||||||||||
Adjusted EBITDA | 68,116 | 60,933 | 59,801 | |||||||||||||||||
Depreciation | (24,394) | (20,032) | (15,797) | |||||||||||||||||
Operating income | 43,722 | 40,901 | 44,004 | |||||||||||||||||
Home Away Inc | Operating Segments | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Third-party revenue | [2] | 20,222 | ||||||||||||||||||
Revenue | [2] | 20,222 | ||||||||||||||||||
Adjusted EBITDA | [2] | 4,011 | ||||||||||||||||||
Depreciation | [2] | (742) | ||||||||||||||||||
Operating income | [2] | 3,269 | ||||||||||||||||||
eLong, Inc | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Third-party revenue | [3] | 41,743 | ||||||||||||||||||
Revenue | [3] | 41,743 | ||||||||||||||||||
Adjusted EBITDA | [3] | (62,167) | ||||||||||||||||||
Depreciation | [3] | (3,263) | ||||||||||||||||||
Operating income | [3] | $ (65,430) | ||||||||||||||||||
eLong, Inc | Operating Segments | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Third-party revenue | 178,076 | 164,013 | ||||||||||||||||||
Revenue | 178,076 | 164,013 | ||||||||||||||||||
Adjusted EBITDA | (26,660) | (11,991) | ||||||||||||||||||
Depreciation | (6,710) | (5,442) | ||||||||||||||||||
Operating income | $ (33,370) | $ (17,433) | ||||||||||||||||||
[1] | During the fourth quarters of 2015 and 2014, we recognized $23 million and $26 million related to restructuring and related reorganization charges. | |||||||||||||||||||
[2] | Includes results since our acquisition of HomeAway on December 15, 2015. | |||||||||||||||||||
[3] | Includes results through our disposal of eLong on May 22, 2015. |
Schedule of Revenue by Geograph
Schedule of Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 1,698,567 | $ 1,937,753 | $ 1,662,600 | $ 1,373,397 | $ 1,355,978 | $ 1,712,504 | $ 1,494,632 | $ 1,200,371 | $ 6,672,317 | $ 5,763,485 | $ 4,771,259 |
United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 3,703,302 | 3,046,520 | 2,510,162 | ||||||||
All Other Countries | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 2,969,015 | $ 2,716,965 | $ 2,261,097 |
Schedule of Property Plant and
Schedule of Property Plant and Equipment by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment, net | $ 1,064,259 | $ 553,126 |
United States | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment, net | 944,208 | 446,044 |
All Other Countries | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment, net | $ 120,051 | $ 107,082 |
Summary of Changes in Valuation
Summary of Changes in Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance of Beginning of Period | $ 13,760 | $ 11,555 | $ 10,771 | |
Charges to Earnings | 11,513 | 11,176 | 6,706 | |
Charges to Other Accounts | [1] | 10,309 | 440 | 3,410 |
Deductions | (8,547) | (9,411) | (9,332) | |
Balance at End of Period | 27,035 | 13,760 | 11,555 | |
Other Reserves | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance of Beginning of Period | 25,258 | 15,891 | 11,195 | |
Balance at End of Period | $ 29,959 | $ 25,258 | $ 15,891 | |
[1] | Charges to other accounts primarily relates to amounts acquired through acquisitions and net translation adjustments. |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||
Revenue | $ 1,698,567 | $ 1,937,753 | $ 1,662,600 | $ 1,373,397 | $ 1,355,978 | $ 1,712,504 | $ 1,494,632 | $ 1,200,371 | $ 6,672,317 | $ 5,763,485 | $ 4,771,259 | |||||||||
Operating income (loss) | 29,477 | [1] | 344,998 | [1] | 90,092 | [1] | (51,001) | [1] | 94,706 | [1] | 296,836 | [1] | 129,220 | [1] | (2,998) | [1] | 413,566 | 517,764 | 366,060 | |
Net income (loss) attributable to Expedia, Inc. | $ (12,538) | $ 283,216 | $ 449,644 | $ 44,143 | $ 65,969 | $ 257,059 | $ 89,373 | $ (14,304) | $ 764,465 | $ 398,097 | $ 232,850 | |||||||||
Basic earnings (loss) per share | [2] | $ (0.09) | $ 2.18 | $ 3.49 | $ 0.35 | $ 0.52 | $ 2.01 | $ 0.69 | $ (0.11) | |||||||||||
Diluted earnings (loss) per share | [2] | $ (0.09) | $ 2.12 | $ 3.38 | $ 0.34 | $ 0.50 | $ 1.94 | $ 0.67 | $ (0.11) | |||||||||||
[1] | During the fourth quarters of 2015 and 2014, we recognized $23 million and $26 million related to restructuring and related reorganization charges. | |||||||||||||||||||
[2] | Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share may not equal the total computed for the year. |
Schedule of Quarterly Financ106
Schedule of Quarterly Financial Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Quarterly Financial Information [Line Items] | ||||||
Restructuring and related reorganization charges | $ 23,000 | $ 25,630 | $ 104,871 | [1] | $ 25,630 | [1] |
[1] | Includes stock-based compensation as follows: Cost of revenue $ 5,307 $ 3,921 $ 3,752 Selling and marketing 33,164 18,067 16,190 Technology and content 26,766 22,100 20,465 General and administrative 80,082 40,923 33,123 Restructuring and related reorganization charges 32,749 - - Acquisition-related and other - - 56,643 |
Schedule of Statement of Operat
Schedule of Statement of Operations Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Revenue | $ 1,698,567 | $ 1,937,753 | $ 1,662,600 | $ 1,373,397 | $ 1,355,978 | $ 1,712,504 | $ 1,494,632 | $ 1,200,371 | $ 6,672,317 | $ 5,763,485 | $ 4,771,259 | |||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of revenue | [1] | 1,309,559 | 1,179,081 | 1,038,034 | ||||||||||||||||||
Selling and marketing | [1] | 3,381,086 | 2,808,329 | 2,196,145 | ||||||||||||||||||
Technology and content | [1] | 830,244 | 686,154 | 577,820 | ||||||||||||||||||
General and administrative | [1] | 573,913 | 425,373 | 377,078 | ||||||||||||||||||
Amortization of intangible assets | 163,665 | 79,615 | 71,731 | |||||||||||||||||||
Acquistion-related and other | [1] | 66,472 | ||||||||||||||||||||
Legal reserves, occupancy tax and other | (104,587) | 41,539 | 77,919 | |||||||||||||||||||
Restructuring and related reorganization charges | 23,000 | 25,630 | 104,871 | [1] | 25,630 | [1] | ||||||||||||||||
Operating income | 29,477 | [2] | 344,998 | [2] | 90,092 | [2] | (51,001) | [2] | 94,706 | [2] | 296,836 | [2] | 129,220 | [2] | (2,998) | [2] | 413,566 | 517,764 | 366,060 | |||
Other income (expense): | ||||||||||||||||||||||
Gain on sale of business | 508,810 | |||||||||||||||||||||
Other, net | 3,586 | (53,123) | (65,367) | |||||||||||||||||||
Other income (expense), net | 512,396 | (53,123) | (65,367) | |||||||||||||||||||
Income before income taxes | 925,962 | 464,641 | 300,693 | |||||||||||||||||||
Benefit (provision) for income taxes | (203,214) | (91,691) | (84,335) | |||||||||||||||||||
Net income | 722,748 | 372,950 | 216,358 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 41,717 | 25,147 | 16,492 | |||||||||||||||||||
Net income attributable to Expedia, Inc. | $ (12,538) | $ 283,216 | $ 449,644 | $ 44,143 | $ 65,969 | $ 257,059 | $ 89,373 | $ (14,304) | 764,465 | 398,097 | 232,850 | |||||||||||
Comprehensive income attributable to Expedia, Inc. | 618,345 | 241,126 | 251,025 | |||||||||||||||||||
Parent | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||
Equity in pre-tax earnings of consolidated subsidiaries | 839,779 | 455,831 | 285,456 | |||||||||||||||||||
Other, net | (119,451) | (91,569) | (83,006) | |||||||||||||||||||
Other income (expense), net | 720,328 | 364,262 | 202,450 | |||||||||||||||||||
Income before income taxes | 720,328 | 364,262 | 202,450 | |||||||||||||||||||
Benefit (provision) for income taxes | 44,137 | 33,835 | 30,400 | |||||||||||||||||||
Net income | 764,465 | 398,097 | 232,850 | |||||||||||||||||||
Net income attributable to Expedia, Inc. | 764,465 | 398,097 | 232,850 | |||||||||||||||||||
Comprehensive income attributable to Expedia, Inc. | 763,202 | 398,097 | 232,850 | |||||||||||||||||||
Guarantor Subsidiaries | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Revenue | 5,194,549 | 4,500,723 | 3,849,746 | |||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of revenue | 1,009,785 | 898,647 | 797,801 | |||||||||||||||||||
Selling and marketing | 2,347,919 | 1,913,719 | 1,492,370 | |||||||||||||||||||
Technology and content | 584,560 | 472,762 | 399,763 | |||||||||||||||||||
General and administrative | 373,162 | 243,793 | 216,551 | |||||||||||||||||||
Amortization of intangible assets | 58,524 | 1,848 | 3,042 | |||||||||||||||||||
Legal reserves, occupancy tax and other | (104,587) | 41,539 | 77,919 | |||||||||||||||||||
Restructuring and related reorganization charges | 76,422 | 5,020 | ||||||||||||||||||||
Intercompany (income) expense, net | 742,010 | 666,675 | 731,867 | |||||||||||||||||||
Operating income | 106,754 | 256,720 | 130,433 | |||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||
Equity in pre-tax earnings of consolidated subsidiaries | 870,108 | 282,769 | 234,869 | |||||||||||||||||||
Other, net | 64,576 | 34,223 | 7,394 | |||||||||||||||||||
Other income (expense), net | 934,684 | 316,992 | 242,263 | |||||||||||||||||||
Income before income taxes | 1,041,438 | 573,712 | 372,696 | |||||||||||||||||||
Benefit (provision) for income taxes | (194,251) | (110,929) | (81,170) | |||||||||||||||||||
Net income | 847,187 | 462,783 | 291,526 | |||||||||||||||||||
Net income attributable to Expedia, Inc. | 847,187 | 462,783 | 291,526 | |||||||||||||||||||
Comprehensive income attributable to Expedia, Inc. | 822,898 | 463,075 | 290,857 | |||||||||||||||||||
Non-Guarantor Subsidiaries | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Revenue | 1,682,677 | [3] | 1,389,979 | 970,087 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of revenue | 308,463 | [3] | 274,788 | 235,753 | ||||||||||||||||||
Selling and marketing | 1,230,059 | [3] | 1,027,798 | 756,767 | ||||||||||||||||||
Technology and content | 245,495 | [3] | 213,159 | 178,052 | ||||||||||||||||||
General and administrative | 200,268 | [3] | 181,228 | 160,594 | ||||||||||||||||||
Amortization of intangible assets | 105,141 | [3] | 77,767 | 68,689 | ||||||||||||||||||
Acquistion-related and other | 66,472 | |||||||||||||||||||||
Restructuring and related reorganization charges | 28,449 | [3] | 20,610 | |||||||||||||||||||
Intercompany (income) expense, net | (742,010) | [3] | (666,415) | (731,867) | ||||||||||||||||||
Operating income | 306,812 | [3] | 261,044 | 235,627 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||
Gain on sale of business | [3] | 508,810 | ||||||||||||||||||||
Other, net | 58,461 | [3] | 4,223 | 10,245 | ||||||||||||||||||
Other income (expense), net | 567,271 | [3] | 4,223 | 10,245 | ||||||||||||||||||
Income before income taxes | 874,083 | [3] | 265,267 | 245,872 | ||||||||||||||||||
Benefit (provision) for income taxes | (53,100) | [3] | (14,597) | (33,565) | ||||||||||||||||||
Net income | 820,983 | [3] | 250,670 | 212,307 | ||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 41,717 | [3] | 25,147 | 16,492 | ||||||||||||||||||
Net income attributable to Expedia, Inc. | 862,700 | [3] | 275,817 | 228,799 | ||||||||||||||||||
Comprehensive income attributable to Expedia, Inc. | 742,132 | [3] | 118,554 | 247,643 | ||||||||||||||||||
Eliminations | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Revenue | (204,909) | (127,217) | (48,574) | |||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of revenue | (8,689) | 5,646 | 4,480 | |||||||||||||||||||
Selling and marketing | (196,892) | (133,188) | (52,992) | |||||||||||||||||||
Technology and content | 189 | 233 | 5 | |||||||||||||||||||
General and administrative | 483 | 352 | (67) | |||||||||||||||||||
Intercompany (income) expense, net | (260) | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||
Equity in pre-tax earnings of consolidated subsidiaries | (1,709,887) | (738,600) | (520,325) | |||||||||||||||||||
Other income (expense), net | (1,709,887) | (738,600) | (520,325) | |||||||||||||||||||
Income before income taxes | (1,709,887) | (738,600) | (520,325) | |||||||||||||||||||
Net income | (1,709,887) | (738,600) | (520,325) | |||||||||||||||||||
Net income attributable to Expedia, Inc. | (1,709,887) | (738,600) | (520,325) | |||||||||||||||||||
Comprehensive income attributable to Expedia, Inc. | $ (1,709,887) | $ (738,600) | $ (520,325) | |||||||||||||||||||
[1] | Includes stock-based compensation as follows: Cost of revenue $ 5,307 $ 3,921 $ 3,752 Selling and marketing 33,164 18,067 16,190 Technology and content 26,766 22,100 20,465 General and administrative 80,082 40,923 33,123 Restructuring and related reorganization charges 32,749 - - Acquisition-related and other - - 56,643 | |||||||||||||||||||||
[2] | During the fourth quarters of 2015 and 2014, we recognized $23 million and $26 million related to restructuring and related reorganization charges. | |||||||||||||||||||||
[3] | Includes results through our disposal of eLong on May 22, 2015. |
Schedule of Balance Sheet Infor
Schedule of Balance Sheet Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
ASSETS | |||||
Total current assets | $ 2,978,761 | $ 2,924,489 | |||
Intangible assets, net | 2,793,954 | 1,290,087 | |||
Goodwill | 7,992,941 | 3,955,901 | $ 3,663,674 | ||
Other assets, net | 1,738,156 | 850,061 | |||
TOTAL ASSETS | 15,503,812 | 9,020,538 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Total current liabilities | 5,926,017 | 4,186,615 | |||
Long-term debt | [1] | 3,201,277 | 1,746,787 | ||
Other liabilities | 788,273 | 633,334 | |||
Redeemable noncontrolling interests | 658,478 | 560,073 | 364,871 | $ 13,473 | |
Stockholders' equity | 4,929,767 | 1,893,729 | $ 2,258,985 | $ 2,389,388 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 15,503,812 | 9,020,538 | |||
Eliminations | |||||
ASSETS | |||||
Total current assets | (717,093) | (2,268,526) | |||
Investment in subsidiaries | (11,527,609) | (6,027,391) | |||
Other assets, net | (13,833) | ||||
TOTAL ASSETS | (12,258,535) | (8,295,917) | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Total current liabilities | (717,093) | (2,268,526) | |||
Other liabilities | (13,833) | ||||
Stockholders' equity | (11,527,609) | (6,027,391) | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | (12,258,535) | (8,295,917) | |||
Parent | |||||
ASSETS | |||||
Total current assets | 233,340 | 189,203 | |||
Investment in subsidiaries | 8,420,890 | 4,689,302 | |||
Other assets, net | 15,670 | 7,082 | |||
TOTAL ASSETS | 8,669,900 | 4,885,587 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Total current liabilities | 538,856 | 1,245,071 | |||
Long-term debt | 3,201,277 | 1,746,787 | |||
Stockholders' equity | 4,929,767 | 1,893,729 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 8,669,900 | 4,885,587 | |||
Guarantor Subsidiaries | |||||
ASSETS | |||||
Total current assets | 2,261,450 | 3,938,831 | |||
Investment in subsidiaries | 3,106,719 | 1,338,089 | |||
Intangible assets, net | 1,974,968 | 637,986 | |||
Goodwill | 5,859,457 | 2,436,533 | |||
Other assets, net | 1,381,837 | 583,782 | |||
TOTAL ASSETS | 14,584,431 | 8,935,221 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Total current liabilities | 5,511,639 | 3,707,638 | |||
Other liabilities | 620,685 | 516,365 | |||
Stockholders' equity | 8,452,107 | 4,711,218 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 14,584,431 | 8,935,221 | |||
Non-Guarantor Subsidiaries | |||||
ASSETS | |||||
Total current assets | 1,201,064 | 1,064,981 | |||
Intangible assets, net | 818,986 | 652,101 | |||
Goodwill | 2,133,484 | 1,519,368 | |||
Other assets, net | 354,482 | 259,197 | |||
TOTAL ASSETS | 4,508,016 | 3,495,647 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Total current liabilities | 592,615 | 1,502,432 | |||
Other liabilities | 181,421 | 116,969 | |||
Redeemable noncontrolling interests | 658,478 | 560,073 | |||
Stockholders' equity | 3,075,502 | 1,316,173 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,508,016 | $ 3,495,647 | |||
[1] | Excludes debt acquired in the HomeAway acquisition included within accrued expenses and other current liabilities as of December 31, 2015. For further information, see Note 3 - Acquisitions and Other Investments. |
Schedule of Cash Flow Statement
Schedule of Cash Flow Statement Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net cash provided by operating activities | $ 1,368,045 | $ 1,366,959 | $ 763,200 |
Investing activities: | |||
Capital expenditures, including internal-use software and website development | (787,041) | (328,387) | (308,581) |
Purchases of investments | (521,329) | (1,194,210) | (1,216,591) |
Sales and maturities of investments | 410,923 | 1,162,557 | 1,502,576 |
Acquisitions, net of cash acquired | (2,063,649) | (560,668) | (541,247) |
Proceeds from sale of business, net of cash divested and disposal costs | 523,882 | ||
Other, net | 65,954 | (3,549) | 38,330 |
Net cash provided by (used in) investing activities from continuing operations | (2,371,260) | (924,257) | (525,513) |
Financing activities: | |||
Proceeds from issuance of long-term debt, net of debt issuance costs | 1,441,860 | 492,894 | |
Purchases of treasury stock | (60,546) | (537,861) | (522,900) |
Proceeds from issuance of treasury stock | 22,575 | 20,404 | 25,273 |
Payment of dividends to stockholders | (108,527) | (84,697) | (75,760) |
Proceeds from exercise of equity awards and employee stock purchase plan | 97,716 | 108,121 | 56,836 |
Withholding taxes for stock option exercises | (85,033) | ||
Other, net | 96,154 | 49,288 | 24,035 |
Net cash provided by (used in) financing activities from continuing operations | 1,404,199 | 48,149 | (492,516) |
Net cash provided by (used in) continuing operations | 400,984 | 490,851 | (254,829) |
Net cash provided by discontinued operations | 13,637 | ||
Effect of exchange rate changes on cash and cash equivalents | (127,385) | (109,184) | (30,936) |
Net increase (decrease) in cash and cash equivalents | 273,599 | 381,667 | (272,128) |
Cash and cash equivalents at beginning of year | 1,402,700 | 1,021,033 | 1,293,161 |
Cash and cash equivalents at end of year | 1,676,299 | 1,402,700 | 1,021,033 |
Parent | |||
Investing activities: | |||
Acquisitions, net of cash acquired | (126,779) | ||
Transfers (to) from related parties | 126,779 | ||
Financing activities: | |||
Proceeds from issuance of long-term debt, net of debt issuance costs | 1,441,860 | 492,894 | |
Purchases of treasury stock | (60,546) | (537,861) | (522,900) |
Proceeds from issuance of treasury stock | 22,575 | 20,404 | 25,273 |
Payment of dividends to stockholders | (108,527) | (84,697) | (75,760) |
Proceeds from exercise of equity awards and employee stock purchase plan | 96,526 | 104,598 | 52,134 |
Withholding taxes for stock option exercises | (85,033) | ||
Transfers (to) from related parties | (1,396,210) | (53,494) | 482,975 |
Other, net | 89,355 | 58,156 | 38,278 |
Guarantor Subsidiaries | |||
Operating activities: | |||
Net cash provided by operating activities | 624,327 | 1,027,571 | 305,174 |
Investing activities: | |||
Capital expenditures, including internal-use software and website development | (709,679) | (281,696) | (243,428) |
Purchases of investments | (473,538) | (913,205) | (932,011) |
Sales and maturities of investments | 327,191 | 861,744 | 1,193,948 |
Acquisitions, net of cash acquired | (1,873,079) | ||
Transfers (to) from related parties | (303,846) | ||
Other, net | 54,226 | (2,805) | 40,850 |
Net cash provided by (used in) investing activities from continuing operations | (2,978,725) | (335,962) | 59,359 |
Financing activities: | |||
Transfers (to) from related parties | 2,350,385 | (287,394) | (754,948) |
Other, net | (11,998) | (2,124) | 7,565 |
Net cash provided by (used in) financing activities from continuing operations | 2,338,387 | (289,518) | (747,383) |
Net cash provided by (used in) continuing operations | (382,850) | ||
Net cash provided by discontinued operations | 13,637 | ||
Effect of exchange rate changes on cash and cash equivalents | (86,269) | (64,798) | (31,260) |
Net increase (decrease) in cash and cash equivalents | (102,280) | 337,293 | (400,473) |
Cash and cash equivalents at beginning of year | 943,976 | 606,683 | 1,007,156 |
Cash and cash equivalents at end of year | 841,696 | 943,976 | 606,683 |
Non-Guarantor Subsidiaries | |||
Operating activities: | |||
Net cash provided by operating activities | 743,718 | 339,388 | 458,026 |
Investing activities: | |||
Capital expenditures, including internal-use software and website development | (77,362) | (46,691) | (65,153) |
Purchases of investments | (47,791) | (281,005) | (284,580) |
Sales and maturities of investments | 83,732 | 300,813 | 308,628 |
Acquisitions, net of cash acquired | (63,791) | (560,668) | (541,247) |
Transfers (to) from related parties | 177,067 | ||
Proceeds from sale of business, net of cash divested and disposal costs | 523,882 | ||
Other, net | 11,728 | (744) | (2,520) |
Net cash provided by (used in) investing activities from continuing operations | 607,465 | (588,295) | (584,872) |
Financing activities: | |||
Proceeds from exercise of equity awards and employee stock purchase plan | 1,190 | 3,523 | 4,702 |
Transfers (to) from related parties | (954,175) | 340,888 | 271,973 |
Other, net | 18,797 | (6,744) | (21,808) |
Net cash provided by (used in) financing activities from continuing operations | (934,188) | 337,667 | 254,867 |
Net cash provided by (used in) continuing operations | 128,021 | ||
Effect of exchange rate changes on cash and cash equivalents | (41,116) | (44,386) | 324 |
Net increase (decrease) in cash and cash equivalents | 375,879 | 44,374 | 128,345 |
Cash and cash equivalents at beginning of year | 458,724 | 414,350 | 286,005 |
Cash and cash equivalents at end of year | $ 834,603 | $ 458,724 | $ 414,350 |