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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
At December 31, 2005 and 2004, our investment in Republic Holdings consisted of the following:
Number of
Underlying
Common Carrying
Shares Values
Expiration Exercise Price Per
(in millions)(1)(2) Date Common Share 2005 2004 2005 2004
2002 Warrant June 2012 $ 12.50 0.8 0.8 $ 7 $ 6
2003 Warrant (February) February 2013 $ 13.00 0.4 0.4 3 3
2003 Warrant (October) October 2013 $ 12.35 0.2 0.2 1 1
2004 Warrant (March) March 2014 $ 12.35 0.3 0.3 2 2
2004 Warrant (December) December 2014 $ 11.60 1.0 1.0 9 8
IPO Warrant June 2014 $ 12.35 0.8 0.8 7 6
Total 3.5 3.5 $ 29 $ 26
(1) Except per share data.
(2) These warrants and the underlying shares of Republic Holdings common stock are not registered under the Securities Act of 1933; we have
certain demand and piggyback registration rights relating to the underlying shares of common stock.
These warrants were recorded at their fair values on the date received in other noncurrent assets on our Consolidated Balance
Sheets. The fair values are primarily being recognized on a straight-line basis over a five year period in our Consolidated Statements
of Operations. In accordance with SFAS 133, any changes in fair value are recorded in other income (expense) in our Consolidated
Statements of Operations. The gains (losses) recorded from our investment in Republic Holdings were not material for any period
presented.
For additional information about our contract carrier agreements with Chautauqua and Shuttle America, see Note 10.
priceline.com Incorporated ("priceline")
We have an agreement with priceline under which we (1) provide ticket inventory that may be sold through priceline's Internet-
based e-commerce system and (2) received certain equity interests in priceline. We are required to provide priceline access to
unpublished fares.
At December 31, 2005 and 2004, our investment in priceline consisted of the following:
Number of Carrying
Shares(2) Values
(in millions)(1) 2005 2004 2005 2004
Series B Preferred Stock(3) 13,469 13,469 $ 13 $ 13
2001 Warrant(4) 0.8 0.8 7 10
Total $ 20 $ 23
(1) Except number of shares of Series B Preferred Stock.
(2) We have certain registration rights relating to shares of priceline common stock we receive as dividends on the Series B Preferred Stock, or
acquire from the exercise of the 2001 Warrant.
(3) The Series B Preferred Stock is classified as an available-for-sale security under SFAS 115 and is recorded at face value, which
approximates fair value, in other noncurrent assets on our Consolidated Balance Sheets. The Series B Preferred Stock, among other things,
(1) bears an annual dividend per share of approximately six shares of priceline common stock and (2) is subject to mandatory redemption in
February 2007 at $1,000 per share plus any dividends accrued or accumulated but not yet paid.
(4) The 2001 Warrant is recorded at fair value in other noncurrent assets on our Consolidated Balance Sheets. In accordance with SFAS 133,
any changes in fair value are recorded in other income (expense) on our Consolidated Statements of Operations. This warrant expires in
February 2007 and has an exercise price of $17.81. F-24