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10-K 1 q42017-10k.htm 10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


Form 10-K

þANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

OR

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-37429


EXPEDIA, INC.

(Exact name of registrant as specified in its charter)

Delaware20-2705720
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

333 108th Avenue NE

Bellevue, WA 98004

(Address of principal executive office) (Zip Code)

Registrant’s telephone number, including area code:

(425) 679-7200


Securities registered pursuant to Section 12(b) of the Act:

Title of each class:Name of each exchange on which registered:
Common stock, $0.0001 par valueThe Nasdaq Global Select Market
Expedia, Inc. 2.500% Senior Notes due 2022New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filerþAccelerated filer¨
Non-accelerated filer¨ (Do not check if a smaller reporting company)Smaller reporting company¨
Emerging growth company¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ

As of June 30, 2017, the aggregate market value of the registrant’s common equity held by non-affiliates was approximately $18,137,071,000. For the purpose of the foregoing calculation only, all directors and executive officers of the registrant are assumed to be affiliates of the registrant.

ClassOutstanding Shares at January 26, 2018 were approximately,
Common stock, $0.0001 par value per share139,033,403 shares
Class B common stock, $0.0001 par value per share12,799,999 shares

Documents Incorporated by Reference

DocumentParts Into Which Incorporated
Portions of the definitive Proxy Statement for the 2018 Annual Meeting of Stockholders (Proxy Statement)Part III

Expedia, Inc.

Form 10-K

For the Year Ended December 31, 2017

Contents

Part I
Item 1Business1
Item 1ARisk Factors10
Item 1BUnresolved Staff Comments26
Item 2Properties26
Item 3Legal Proceedings26
Item 4Mine Safety Disclosures36
Part II
Item 5Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities36
Item 6Selected Financial Data39
Item 7Management’s Discussion and Analysis of Financial Condition and Results of Operations39
Item 7AQuantitative and Qualitative Disclosures About Market Risk61
Item 8Consolidated Financial Statements and Supplementary Data62
Item 9Changes in and Disagreements with Accountants on Accounting and Financial Disclosure62
Item 9AControls and Procedures62
Item 9BOther Information65
Part III
Item 10Directors, Executive Officers and Corporate Governance65
Item 11Executive Compensation65
Item 12Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters65
Item 13Certain Relationships and Related Transactions, and Director Independence65
Item 14Principal Accountant Fees and Services65
Part IV
Item 15Exhibits, Consolidated Financial Statements and Financial Statement Schedules65
Signatures70

Expedia, Inc.

Form 10-K

For the Year Ended December 31, 2017

Next: Item 1. Business