Priceline 2015 Annual Report Download - page 120

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First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share data)
2014
Total revenues (1) $ 1,641,802
$ 2,123,575
$ 2,836,497
$ 1,840,097
Gross profit 1,406,471
1,882,996
2,619,978
1,674,685
Net income applicable to common stockholders 331,218
576,451
1,062,253
451,831
Net income applicable to common stockholders per basic common share $ 6.35
$ 11.00
$ 20.27
$ 8.65
Net income applicable to common stockholders per diluted common
share $ 6.25
$ 10.89
$ 20.03
$ 8.56
(1) As the Company's retail accommodation business, which recognizes revenue at the completion of the stay, continues to expand, our quarterly results
become increasingly impacted by seasonal factors.
19 . ACQUISITIONS
Acquisition activity in 2015
The Company paid approximately $75 million , net of cash acquired, to acquire certain businesses in 2015. The Company's consolidated financial
statements include the accounts of these businesses starting at their respective acquisition dates. Revenues and earnings of these businesses since their respective
acquisition date and pro forma results of operations have not been presented separately as such financial information is not material to the Company's results of
operations. As of December 31, 2015 , the Company recognized a liability of approximately $9 million for estimated contingent payments. The estimated
acquisition-date contingent liability is based upon the probability-weighted average payments for specific performance factors from the acquisition date through
the performance period which ends at March 31, 2019. The range of undiscounted outcomes for the estimated contingent payments is approximately $0 to $90
million .
Acquisition activity in 2014
OpenTable, Inc.
On July 24, 2014, the Company acquired OpenTable, Inc., a leading online restaurant reservation business, in a cash transaction. The purchase price of
OpenTable was approximately $2.5 billion (approximately $2.4 billion net of cash acquired) or $103.00 per share of OpenTable common stock. The Company
funded the acquisition from cash on hand in the United States and $995 million borrowed under the Company's previous revolving credit facility, which the
Company repaid during the third quarter of 2014. Also, in connection with this acquisition, the Company assumed unvested employee stock options and restricted
stock units with an acquisition fair value of approximately $95 million .
OpenTable has built a strong brand helping diners secure restaurant reservations online across the United States and select non-U.S. markets. OpenTable
also helps restaurants manage their reservations and connect directly with their customers. The Company believes that OpenTable has significant global potential
and intends to leverage its international experience and capabilities in support of OpenTable's international growth.
116