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8-K - FORM 8-K - Expedia Group, Inc.d907525d8k.htm

Exhibit 99.1

Recast Segment Selected Financial Data for the

2014 and 2013 Quarterly Periods

Selected segment financial information for the 2014 and 2013 quarterly periods is presented below. Prior year information has been recast to conform to the current year presentation.

Expedia, Inc. (the “Company”) now considers its business to consist of the following four reportable segments:

 

    Core OTA: Our Core Online Travel Companies (“Core OTA”) segment 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.com and Hotels.com websites throughout the world, Expedia Affiliate Network, Hotwire.com, Travelocity, Venere, Wotif Group, CarRentals.com, and Classic Vacations.

 

    trivago: Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.

 

    Egencia: Our Egencia segment provides managed travel services to corporate customers worldwide.

 

    eLong: Our eLong segment consists of our majority ownership interest in eLong, Inc., which specializes in mobile and online travel services in China.

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 organization as well as the realized foreign currency gains or losses related to forward contracts that hedge a component of our net merchant hotel revenue. We base these 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 expenses to our reportable segments. We include these shared 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 with third parties, and therefore impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation, which is included within Corporate and Eliminations in the tables below.


EXPEDIA, INC.

HISTORICAL SEGMENT FINANCIALS

2013 to 2014

(in millions)

 

     2013     2014  
     Q1     Q2     Q3     Q4     Total     Q1     Q2     Q3     Q4     Total  

Gross Bookings

                    

Core OTA

   $ 8,283      $ 8,515      $ 8,679      $ 7,493      $ 32,970      $ 10,811      $ 11,174      $ 11,453      $ 9,431      $ 42,869   

Egencia

     1,117        1,188        1,125        1,104        4,533        1,310        1,328        1,285        1,226        5,149   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Expedia (excluding eLong)

$ 9,400    $ 9,703    $ 9,803    $ 8,597    $ 37,503    $ 12,121    $ 12,502    $ 12,738    $ 10,657    $ 48,018   

eLong(1)

  381      418      633      507      1,939      504      544      731      650      2,429   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 9,781    $ 10,121    $ 10,437    $ 9,104    $ 39,443    $ 12,624    $ 13,046    $ 13,470    $ 11,307    $ 50,447   

Revenue

Core OTA

$ 876    $ 1,026    $ 1,197    $ 970    $ 4,069    $ 1,001    $ 1,268    $ 1,477    $ 1,159    $ 4,905   

trivago(2)

  14      54      92      55      216      83      104      139      87      414   

Egencia

  89      95      85      96      365      100      103      97      100      400   

Corporate and Eliminations

  (2   (9   (21   (12   (43   (24   (32   (49   (27   (133
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Expedia (excluding eLong)

$ 977    $ 1,167    $ 1,354    $ 1,109    $ 4,607    $ 1,160    $ 1,443    $ 1,664    $ 1,318    $ 5,585   

eLong(1)

  35      38      48      43      164      40      51      49      38      178   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 1,012    $ 1,205    $ 1,402    $ 1,152    $ 4,771    $ 1,200    $ 1,495    $ 1,713    $ 1,356    $ 5,763   

Adjusted EBITDA

Core OTA

$ 176    $ 276    $ 419    $ 302    $ 1,172    $ 183    $ 345    $ 501    $ 359    $ 1,387   

trivago(2)

  0      (5   6      18      18      (1   (10   0      14      4   

Egencia

  12      18      12      18      60      17      18      16      11      61   

Unallocated Overhead Costs

  (85   (91   (91   (92   (359   (91   (101   (102   (107   (401
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Expedia (excluding eLong)

$ 103    $ 197    $ 345    $ 245    $ 891    $ 108    $ 252    $ 415    $ 277    $ 1,051   

eLong(1)

  2      (6   (5   (3   (12   (1   8      (6   (27   (27
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total(3)

$ 105    $ 192    $ 340    $ 242    $ 879    $ 107    $ 259    $ 409    $ 250    $ 1,025   

 

Note: Some numbers may not add due to rounding.
(1) The classification of certain revenue and expense items as well as the foreign exchange rates used for reporting purposes may result in immaterial differences between the above reported amounts and eLong, Inc.’s standalone results.
(2) Includes results following the acquisition of a controlling interest in trivago on March 8, 2013.
(3) “Adjusted EBITDA” (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) is a non-GAAP measure as defined by the Securities and Exchange Commission (the “SEC”). Please see the section below titled “Adjusted EBITDA (a Non-GAAP Financial Measure)” for an explanation and definition of this non-GAAP measure, as well as a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP.

Adjusted EBITDA (a Non-GAAP Financial Measure)

This presentation includes a financial measure titled Adjusted EBITDA, which is a supplemental measure to GAAP and is defined by the SEC as a non-GAAP financial measure. Adjusted EBITDA is the primary operating metric by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. Adjusted EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to results prepared in accordance with GAAP. Adjusted EBITDA has certain limitations in that it does not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for this limitation by also providing the most directly comparable GAAP measure and descriptions of the reconciling items and adjustments to derive the non-GAAP measure. Adjusted EBITDA excludes certain items related to transactional tax matters, which may ultimately be settled in cash, and we urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis, Legal Proceedings sections, as well as the notes to the financial statements, included in the Company’s annual and quarterly reports filed with the Securities and Exchange Commission. The Adjusted EBITDA measure used by the Company may be calculated differently from, and therefore may not be comparable to, a similarly titled measure used by other companies.

Adjusted EBITDA is defined as operating income / (loss) plus: (1) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans; (2) acquisition-related impacts, including (i)


amortization of intangible assets and goodwill and intangible asset impairment, (ii) gains (losses) recognized on changes in the value of contingent consideration arrangements; and (iii) upfront consideration paid to settle employee compensation plans of the acquiree; (3) certain infrequently occurring items, including restructuring; (4) items included in Legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g. hotel and excise taxes), related to court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings; (5) gains (losses) realized on revenue hedging activities that are included in other, net; and (6) depreciation.

The above items are excluded from our Adjusted EBITDA measure because these items are noncash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more meaningful comparison of our performance and projected cash earnings with our historical results from prior periods and to the results of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. In addition, we believe that by excluding certain items, such as stock-based compensation and acquisition-related impacts, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced.


EXPEDIA, INC.

SEGMENT RECONCILIATIONS TO NET INCOME

 

     Three months ended March 31, 2013  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    Total  
     (In thousands)  

Third-party revenue

   $ 876,109      $ 12,718      $ 88,519      $ 35,021      $ —        $ 1,012,367   

Intersegment revenue

     —          1,654        —          —          (1,654     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

$ 876,109    $ 14,372    $ 88,519    $ 35,021    $ (1,654 $ 1,012,367   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 175,800    $ 29    $ 12,332    $ 2,225    $ (85,258 $ 105,128   

Depreciation

  (24,156   —        (3,901   (1,247   (19,562   (48,866

Amortization of intangible assets

  —        —        —        —        (12,570   (12,570

Stock-based compensation

  —        —        —        —        (75,078   (75,078

Acquisition-related and other

  (9,829   (9,829

Legal reserves, occupancy tax and other

  —        —        —        —        (61,558   (61,558

Realized gain on revenue hedges

  (2,855   —        —        —        —        (2,855
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

$ 148,789    $ 29    $ 8,431    $ 978    $ (263,855   (105,628
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Other expense, net

  (13,643
            

 

 

 

Loss before income taxes

  (119,271

Provision for income taxes

  11,903   
            

 

 

 

Net loss

  (107,368

Net loss attributable to noncontrolling interests

  3,142   
            

 

 

 

Net loss attributable to Expedia, Inc.

$ (104,226
            

 

 

 
     Three months ended June 30, 2013  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    Total  
     (In thousands)  

Third-party revenue

   $ 1,026,497      $ 45,316      $ 95,308      $ 37,896      $ —        $ 1,205,017   

Intersegment revenue

     —          8,537        —          —          (8,537     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

$ 1,026,497    $ 53,853    $ 95,308    $ 37,896    $ (8,537 $ 1,205,017   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 275,661    $ (5,130 $ 17,767    $ (5,507 $ (91,089 $ 191,702   

Depreciation

  (26,269   (163   (3,540   (1,368   (19,799   (51,139

Amortization of intangible assets

  —        —        —        —        (18,837   (18,837

Stock-based compensation

  —        —        —        —        (16,086   (16,086

Legal reserves, occupancy tax and other

  —        —        —        —        (6,246   (6,246

Realized gain on revenue hedges

  (5,108   —        —        —        —        (5,108
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

$ 244,284    $ (5,293 $ 14,227    $ (6,875 $ (152,057   94,286   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Other expense, net

  (6,863
            

 

 

 

Income before income taxes

  87,423   

Provision for income taxes

  (24,408
            

 

 

 

Net income

  63,015   

Net loss attributable to noncontrolling interests

  8,485   
            

 

 

 

Net income attributable to Expedia, Inc.

$ 71,500   
            

 

 

 


     Three months ended September 30, 2013  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    Total  
     (In thousands)  

Third-party revenue

   $ 1,196,681      $ 71,545      $ 85,377      $ 48,257      $ —        $ 1,401,860   

Intersegment revenue

     —          20,550        —          —          (20,550     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

$ 1,196,681    $ 92,095    $ 85,377    $ 48,257    $ (20,550 $ 1,401,860   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 418,808    $ 5,714    $ 11,683    $ (5,276 $ (91,032 $ 339,897   

Depreciation

  (27,414   (193   (3,844   (1,382   (20,132   (52,965

Amortization of intangible assets

  —        —        —        —        (18,514   (18,514

Stock-based compensation

  —        —        —        —        (18,039   (18,039

Legal reserves, occupancy tax and other

  —        —        —        —        (6,874   (6,874

Realized gain on revenue hedges

  (4,814   —        —        —        —        (4,814
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

$ 386,580    $ 5,521    $ 7,839    $ (6,658 $ (154,591   238,691   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Other expense, net

  (26,611
            

 

 

 

Income before income taxes

  212,080   

Provision for income taxes

  (45,356
            

 

 

 

Net income

  166,724   

Net loss attributable to noncontrolling interests

  4,135   
            

 

 

 

Net income attributable to Expedia, Inc.

$ 170,859   
            

 

 

 
     Three months ended December 31, 2013  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    Total  
     (In thousands)  

Third-party revenue

   $ 969,997      $ 43,460      $ 95,719      $ 42,839      $ —        $ 1,152,015   

Intersegment revenue

     —          12,014        —          —          (12,014     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

$ 969,997    $ 55,474    $ 95,719    $ 42,839    $ (12,014 $ 1,152,015   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 301,594    $ 17,837    $ 18,019    $ (3,433 $ (92,021 $ 241,996   

Depreciation

  (30,620   (214   (4,512   (1,445   (21,983   (58,774

Amortization of intangible assets

  —        —        —        —        (21,810   (21,810

Stock-based compensation

  —        —        —        —        (20,970   (20,970

Legal reserves, occupancy tax and other

  —        —        —        —        (3,241   (3,241

Realized loss on revenue hedges

  1,510      —        —        —        —        1,510   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

$ 272,484    $ 17,623    $ 13,507    $ (4,878 $ (160,025   138,711   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Other expense, net

  (18,250
            

 

 

 

Income before income taxes

  120,461   

Provision for income taxes

  (26,474
            

 

 

 

Net income

  93,987   

Net loss attributable to noncontrolling interests

  730   
            

 

 

 

Net income attributable to Expedia, Inc.

$ 94,717   
            

 

 

 


     Year ended December 31, 2013  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    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 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   
            

 

 

 
     Three months ended March 31, 2014  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    Total  
     (In thousands)  

Third-party revenue

   $ 1,000,847      $ 59,075      $ 100,238      $ 40,211      $ —        $ 1,200,371   

Intersegment revenue

     —          24,332        —          —          (24,332     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

$ 1,000,847    $ 83,407    $ 100,238    $ 40,211    $ (24,332 $ 1,200,371   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 183,351    $ (690 $ 16,588    $ (1,338 $ (91,140 $ 106,771   

Depreciation

  (31,453   (236   (4,922   (1,495   (24,028   (62,134

Amortization of intangible assets

  —        —        —        —        (18,492   (18,492

Stock-based compensation

  —        —        —        —        (24,821   (24,821

Legal reserves, occupancy tax and other

  —        —        —        —        (3,539   (3,539

Realized gain on revenue hedges

  (783   —        —        —        —        (783
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

$ 151,115    $ (926 $ 11,666    $ (2,833 $ (162,020   (2,998
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Other expense, net

  (16,487
            

 

 

 

Loss before income taxes

  (19,485

Provision for income taxes

  (319
            

 

 

 

Net loss

  (19,804

Net loss attributable to noncontrolling interests

  5,500   
            

 

 

 

Net loss attributable to Expedia, Inc.

$ (14,304
            

 

 

 


     Three months ended June 30, 2014  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    Total  
     (In thousands)  

Third-party revenue

   $ 1,268,102      $ 71,939      $ 103,114      $ 51,477      $ —        $ 1,494,632   

Intersegment revenue

     —          32,435        —          —          (32,435     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

$ 1,268,102    $ 104,374    $ 103,114    $ 51,477    $ (32,435 $ 1,494,632   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 344,529    $ (9,770 $ 17,611    $ 7,597    $ (100,711 $ 259,256   

Depreciation

  (33,757   (334   (4,771   (1,616   (25,080   (65,558

Amortization of intangible assets

  —        —        —        —        (18,264   (18,264

Stock-based compensation

  —        —        —        —        (21,014   (21,014

Legal reserves, occupancy tax and other

  —        —        —        —        (31,416   (31,416

Realized loss on revenue hedges

  6,216      —        —        —        —        6,216   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

$ 316,988    $ (10,104 $ 12,840    $ 5,981    $ (196,485   129,220   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Other expense, net

  (22,615
            

 

 

 

Income before income taxes

  106,605   

Provision for income taxes

  (20,751
            

 

 

 

Net income

  85,854   

Net loss attributable to noncontrolling interests

  3,519   
            

 

 

 

Net income attributable to Expedia, Inc.

$ 89,373   
            

 

 

 
     Three months ended September 30, 2014  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    Total  
     (In thousands)  

Third-party revenue

   $ 1,477,145      $ 89,821      $ 96,667      $ 48,871      $ —        $ 1,712,504   

Intersegment revenue

     —          48,735        —          —          (48,735     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

$ 1,477,145    $ 138,556    $ 96,667    $ 48,871    $ (48,735 $ 1,712,504   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 500,513    $ 116    $ 16,037    $ (6,042 $ (101,554 $ 409,070   

Depreciation

  (36,613   (380   (5,054   (1,729   (23,693   (67,469

Amortization of intangible assets

  —        —        —        —        (18,519   (18,519

Stock-based compensation

  —        —        —        —        (22,304   (22,304

Legal reserves, occupancy tax and other

  —        —        —        —        (3,888   (3,888

Realized gain on revenue hedges

  (54   —        —        —        —        (54
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

$ 463,846    $ (264 $ 10,983    $ (7,771 $ (169,958   296,836   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Other expense, net

  (7,311
            

 

 

 

Income before income taxes

  289,525   

Provision for income taxes

  (38,904
            

 

 

 

Net income

  250,621   

Net loss attributable to noncontrolling interests

  6,438   
            

 

 

 

Net income attributable to Expedia, Inc.

$ 257,059   
            

 

 

 


     Three months ended December 31, 2014  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    Total  
     (In thousands)  

Third-party revenue

   $ 1,159,056      $ 59,720      $ 99,685      $ 37,517      $ —        $ 1,355,978   

Intersegment revenue

     —          27,462        —          —          (27,462     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

$ 1,159,056    $ 87,182    $ 99,685    $ 37,517    $ (27,462 $ 1,355,978   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 358,993    $ 14,261    $ 10,697    $ (26,877 $ (107,383 $ 249,691   

Depreciation

  (37,686   (410   (5,285   (1,870   (25,405   (70,656

Amortization of intangible assets

  —        —        —        —        (24,340   (24,340

Stock-based compensation

  —        —        —        —        (16,872   (16,872

Legal reserves, occupancy tax and other

  —        —        —        —        (2,696   (2,696

Restructuring and related reorganization charges

  —        —        —        —        (25,630   (25,630

Realized gain on revenue hedges

  (14,791   —        —        —        —        (14,791
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

$ 306,516    $ 13,851    $ 5,412    $ (28,747 $ (202,326   94,706   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Other expense, net

  (6,710
            

 

 

 

Income before income taxes

  87,996   

Provision for income taxes

  (31,717
            

 

 

 

Net income

  56,279   

Net loss attributable to noncontrolling interests

  9,690   
            

 

 

 

Net income attributable to Expedia, Inc.

$ 65,969   
            

 

 

 
     Year ended December 31, 2014  
     Core OTA     trivago     Egencia     eLong     Corporate &
Eliminations
    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 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