Expedia 2007 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 of the 2007 Expedia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

Worldspan Litigation. On July 26, 2006, Expedia filed a lawsuit against Worldspan, L.P. in state court
in Washington seeking a declaratory judgment, and other relief, regarding the rights and obligations of Expedia
and Worldspan under the parties’ June 2001 Amended and Restated Development Agreement and the parties’
CRS Marketing, Services and Development Agreement and all amendments thereto. See Expedia. Inc. v.
Worldspan, L.P., (King County Superior Court). Worldspan answered the lawsuit on August 15, 2006, denying
the allegations. On September 4, 2007, the parties entered into a stipulation to stay the lawsuit until
December 10, 2007. The parties are currently preparing final settlement documents for this matter.
Part I. Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to a vote of our security holders during the fourth quarter of 2007.
Part II. Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Pur-
chases of Equity Securities
Market Information
Our common stock has been quoted on NASDAQ under the ticker symbol “EXPE” since August 9, 2005.
Prior to that time, there was no public market for our common stock. Our Class B common stock is not listed
and there is no established public trading market. As of February 15, 2008, there were approximately 5,577
holders of record of our common stock and the closing price of our common stock was $25.59 on NASDAQ.
As of February 15, 2008, there were five holders of record of our Class B common stock, each of which is an
affiliate of Liberty.
The following table sets forth the intra-day high and low prices per share for our common stock during
the periods indicated:
High Low
Year ended December 31, 2007
Fourth Quarter .................................................. $35.28 $27.48
Third Quarter ................................................... 32.57 25.45
Second Quarter .................................................. 29.85 22.44
First Quarter .................................................... 23.34 19.97
High Low
Year ended December 31, 2006
Fourth Quarter .................................................. $21.29 $15.55
Third Quarter ................................................... 17.28 12.87
Second Quarter .................................................. 20.55 13.36
First Quarter .................................................... 27.55 17.42
Dividend Policy
We have not historically paid cash dividends on our common stock or Class B common stock. Declaration
and payment of future dividends, if any, will be at the discretion of the Board of Directors and will depend on,
among other things, our results of operations, cash requirements and surplus, financial condition, share dilution
management, legal risks, capital requirements relating to research and development, investments and acquisi-
tions, challenges to our business model and other factors that the Board of Directors may deem relevant. In
addition, our Credit Agreement limits our ability to pay cash dividends under certain circumstances.
Unregistered Sales of Equity Securities
During the quarter ended December 31, 2007, we did not issue or sell any shares of our common stock or
other equity securities pursuant to unregistered transactions in reliance upon an exemption from the registration
requirements of the Securities Act of 1933, as amended.
30