Priceline 2011 Annual Report Download - page 90

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89
shares in each case at a purchase price reflecting the fair value of the Redeemable Shares at the time of exercise. Subject to
certain exceptions, one-third of the Redeemable Shares will be subject to the put and call options in each of 2011, 2012 and
2013, respectively, during specified option exercise periods. In April 2011, in connection with the exercise of March 2011 call
and put options, PIL purchased a portion of the shares underlying redeemable noncontrolling interests for an aggregate
purchase price of approximately $13.0 million. As a result of the April 2011 purchase, the redeemable noncontrolling interests
in rentalcars.com were reduced from 24.4% to 19.0%.
Redeemable noncontrolling interests are measured at fair value, both at the date of acquisition and subsequently at
each reporting period. The redeemable noncontrolling interests are reported on the Consolidated Balance Sheet in mezzanine
equity in "Redeemable noncontrolling interests."
A reconciliation of redeemable noncontrolling interests for the year ended December 31, 2011 is as follows (in
thousands):
Balance, December 31, 2010
Net income attributable to noncontrolling interests
Fair value adjustments(1)
Purchase of subsidiary shares at fair value(1)
Currency translation adjustments
Balance, December 31, 2011
2011
$ 45,751
2,760
91,743
(12,986)
(223)
$ 127,045
_____________________________
(1) The estimated fair value was based upon standard valuation techniques using discounted cash flow analysis and
industry peer comparable analysis. The fair value adjustments are recorded as a charge to retained earnings.
A reconciliation of redeemable noncontrolling interests for the year ended December 31, 2010 is as follows (in
thousands):
Balance, December 31, 2009
Fair value at acquisition(1)
Sale of subsidiary shares at fair value(2)
Net income attributable to noncontrolling interests
Fair value adjustments(3)
Currency translation adjustments
Balance, December 31, 2010
2010
$ —
29,520
4,311
601
7,876
3,443
$ 45,751
_____________________________
(1) The fair value was determined based on the price paid at acquisition.
(2) The Company retained a controlling interest after the sale of the subsidiary shares in June 2010.
(3) The estimated fair value was based upon standard valuation techniques using discounted cash flow analysis and
industry peer comparable analysis. The fair value adjustments were recorded as charges to additional paid-in capital
or retained earnings.