Priceline 2014 Annual Report Download - page 98

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The aggregate intrinsic value of exercised employee stock options assumed in acquisitions during the years ended December 31, 2014
and 2013 was $39.9 million and $236.9 million , respectively.
For the year ended December 31, 2014 , employee stock options assumed in acquisitions had a total acquisition date fair value of $45.5
million based on a weighted average acquisition date fair value of $734.76 per share. During the year ended December 31, 2014 and 2013 ,
assumed unvested employee stock options vested for 41,524 and 65,293 shares with a fair value of $24.2 million and $30.9 million ,
respectively.
For the year ended December 31, 2014 and 2013 , the Company recorded stock-based compensation expense of $24.7 million and
$30.9
million , respectively related to unvested assumed employee stock options. As of December 31, 2014 , there was $36.2 million of total future
compensation costs related to unvested assumed employee stock options to be recognized over a weighted-average period of 1.6 years .
The following table summarizes, by major security type, the Company's investments as of December 31, 2014 (in thousands):
As of December 31, 2014 , foreign government securities included investments in debt securities issued by the governments of the
United Kingdom and the Netherlands.
In August 2014, the Company used its non-U.S. cash to invest in a five -
year Senior Convertible Note issued by Ctrip.com International
Ltd. ("Ctrip"). The note was issued at par in an aggregate principal amount of $500 million . Additionally, during the year ended December 31,
2014 , the Company invested $421.9 million of its non-U.S. cash in Ctrip American Depositary Shares ("ADSs"). The convertible debt and
equity securities of Ctrip have been marked to market in accordance with the accounting guidance for available-for-sale securities and at
December 31, 2014 show a $74.0 million and $86.6 million
unrealized loss, respectively, as a result of decreases in Ctrip's publicly traded shares
since the convertible debt and equity purchases were made. In connection with the purchase of the convertible note, Ctrip granted the Company
the right to appoint an observer to Ctrip's board of directors and permission to acquire Ctrip shares (including through the acquisition of Ctrip
ADSs in the open market) over the twelve months following the purchase date, so that combined with ADSs issuable upon conversion of the
note, the Company may hold up to 10% of Ctrip's outstanding equity.
93
4.
INVESTMENTS
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Available for sale securities:
Short-term investments:
Foreign government securities
$
52,524
$
—
$
(
34
)
$
52,490
U.S. government securities
364,276
24
(34
)
364,266
U.S. commercial paper
621,252
15
(652
)
620,615
U.S. government agency securities
104,829
—
(
18
)
104,811
Total short-term investments
$
1,142,881
$
39
$
(738
)
$
1,142,182
Long-term investments:
Foreign government securities
$
12,707
$
—
$
(
36
)
$
12,671
U.S. government securities
557,130
80
(762
)
556,448
U.S. corporate debt securities
2,332,030
2,299
(5,296
)
2,329,033
U.S. government agency securities
95,108
97
(111
)
95,094
U.S. municipal securities
1,114
—
(
12
)
1,102
Ctrip corporate debt securities
500,000
—
(
74,039
)
425,961
Ctrip equity securities
421,930
—
(
86,586
)
335,344
Total long-term investments
$
3,920,019
$
2,476
$
(166,842
)
$
3,755,653