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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: ild who wrote (146631)	1/28/2002 6:37:46 PM
From: reaper	of 436258

<<Tell me this is not dirty accounting tricks!!!>> This guy is wrong. The change in deferred revenue is SEASONAL in nature; deferred revenue arises when Expedia (or ROOM) has already taken your money but you have not yet taken the trip (i.e. in the merchant model you pay up front). It is easy to see why this account would be down in December versus June; in June everybody is booking for the busy July & August travel periods, while in December people are booking for the not at all (comparatively) busy January & February travel periods. If you look on a year-over-year basis (which is the appropriate measure, given the seasonality of this account) deferred revenue is up to $52,965 from $19,918. That is a HUGE increase, and also happens to be consistent with their nearly 3x increase in merchant revenue to $34,321 from $12,033 in the same period. fwiw, Greg Stanger, the CFO of EXPE, I know personally from a prior life and consider to be a good and honest man. there is nothing at all untoward about the accounting at EXPE, that I can see. in fact, ROOM and EXPE both are pretty damn good growing businesses with excellent cash flow and no real capital requirements. Cheers

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