Expedia 2007 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 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

shares were outstanding for the entire period prior to the Spin-Off, plus the weighted average of such shares
outstanding following the Spin-Off.
Diluted Earnings Per Share
For the years ended December 31, 2007, 2006 and 2005, we computed diluted earnings per share using
(i) the number of shares of common stock and Class B common stock used in the basic earnings per share
calculation as indicated above (ii) if dilutive, the incremental common stock that we would issue upon the
assumed exercise of stock options and stock warrants and the vesting of restricted stock units using the
treasury stock method, and (iii) the shares we are contractually obligated to issue associated with the Ask
Jeeves Notes, if converted, and other stock-based commitments.
The following table presents our basic and diluted earnings per share:
2007 2006 2005
Year Ended December 31,
(In thousands, except per share data)
Net income ....................................... $295,864 $244,934 $228,730
Net earnings per share available to common stockholders:
Basic ............................................ $ 1.00 $ 0.72 $ 0.68
Diluted .......................................... 0.94 0.70 0.65
Weighted average number of shares outstanding:
Basic ............................................ 296,640 338,047 336,819
Dilutive effect of:
Options to purchase common stock .................... 7,384 7,744 5,568
Warrants to purchase common stock ................... 7,574 3,600 5,007
Other dilutive securities ............................ 2,635 2,790 2,136
Diluted .......................................... 314,233 352,181 349,530
The earnings per share amounts are the same for common stock and Class B common stock because the
holders of each class are legally entitled to equal per share distributions whether through dividends or in
liquidation.
NOTE 13 — Other Income (Expense)
Other, net
The following table presents the components of other, net:
2007 2006 2005
For the Year Ended December 31,
(In thousands)
Unrealized gain (loss) on derivative instruments, net ........... $ (5,748) $ 8,137 $(6,042)
Federal excise tax refunds ............................... 12,058 — —
Foreign exchange rate gains (losses), net . ................... (22,047) 10,367 (638)
Equity income (loss) of unconsolidated affiliates .............. (2,614) 2,541 1,668
Other .............................................. (256) (2,275) (3,416)
Total ............................................. $(18,607) $18,770 $(8,428)
During the second quarter of 2007, we recorded refunds based on notification from the Internal Revenue
Service (“IRS”) totaling $14.7 million related to Federal Excise Tax (“FET”) taxes remitted to the IRS but not
F-31
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)