Exhibit 12.1
EXPEDIA, INC.
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended June 30, | Year Ended December 31, | |||||||||||||||||||||
2010 | 2009 | 2009 | 2008(1) | 2007 | 2006 | 2005 | ||||||||||||||||
(in thousands, except ratios) | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||
Income (loss) before income taxes | $ | 267,653 | $ | 143,207 | $ | 458,023 | $ | (2,514,704 | ) | $ | 496,984 | $ | 384,898 | $ | 413,871 | |||||||
Fixed charges | 48,928 | 49,673 | 99,097 | 86,805 | 63,715 | 27,173 | 10,773 | |||||||||||||||
Total earnings available for fixed charges | $ | 316,581 | $ | 192,880 | $ | 557,120 | $ | (2,427,899 | ) | $ | 560,699 | $ | 412,071 | $ | 424,644 | |||||||
Fixed charges: | ||||||||||||||||||||||
Interest expense | $ | 41,412 | $ | 42,450 | $ | 84,233 | $ | 71,984 | $ | 52,896 | $ | 17,266 | $ | 2,106 | ||||||||
Estimate of interest within rental expense(2) | 7,516 | 7,223 | 14,864 | 14,821 | 10,819 | 9,907 | 8,667 | |||||||||||||||
Total fixed charges | $ | 48,928 | $ | 49,673 | $ | 99,097 | $ | 86,805 | $ | 63,715 | $ | 27,173 | $ | 10,773 | ||||||||
Consolidated ratio of earnings to fixed charges | 6.47x | 3.88x | 5.62x | N/A | 8.80x | 15.16x | 39.42x |
(1) The year ended December 31, 2008 includes an approximately $3 billion impairment charge related to goodwill, intangible and other long-lived assets resulting in earnings that were inadequate to cover fixed charges by approximately $2.515 billion. Excluding this charge the ratio of earnings to fixed charges would have been 6.54x.
(2) Assumes the interest component of rental expense is approximately one-third of total rental expense based on an analysis of net present values.