TripAdvisor 2012 Annual Report Download - page 90

loss may have been incurred that would be material to the financial statements. Significant judgment is required
to determine the probability that a liability has been incurred and whether such liability is reasonably estimable.
We base accruals made on the best information available at the time which can be highly subjective. The final
outcome of these matters could vary significantly from the amounts included in the accompanying consolidated
and combined financial statements.
Comprehensive Loss
Comprehensive loss consists of net income (loss), cumulative foreign currency translation adjustments, and
unrealized gains and losses on available-for-sale securities, net of tax.
Earnings per Share (EPS)
As discussed above in “Note 1—Organization and Basis of Presentation”, in connection with the Spin-Off
a one-for-two reverse stock split of outstanding Expedia capital stock occurred immediately prior to the Spin-Off,
which resulted in 120,661,020 shares of common stock and 12,799,999 shares of Class B common stock
outstanding immediately following the Spin-Off.
Basic Earnings Per Share
For the year ending ended December 31, 2012, we computed basic earnings per share using the number of
shares of common stock and Class B common stock outstanding as of December 31, 2011 plus the weighted
average of any additional shares issued and outstanding during the year ended December 31, 2012.
For the year ended December 31, 2011, we computed basic earnings per share using the number of shares of
common stock and Class B common stock outstanding immediately following the Spin-Off, as if such shares
were outstanding for the entire period prior to the Spin-Off, plus the weighted average of any additional shares
issued and outstanding following the Spin-Off date through December 31, 2011.
For the year ended December 31, 2010, we computed basic earnings per share using the number of shares of
common stock and Class B common stock outstanding immediately following the Spin-Off, as if such shares
were outstanding for the entire period.
Diluted Earnings Per Share
For the year ended December 31, 2012, we computed diluted earnings per share using (i) the number of
shares of common stock and Class B common stock outstanding at December 31, 2011, (ii) the weighted average
of any additional shares issued and outstanding for the year ended December 31, 2012, and (iii) if dilutive, the
incremental weighted average common stock that we would issue upon the assumed exercise of common
equivalent shares related to stock options, stock warrants and the vesting of restricted stock units using the
treasury stock method during the year ended December 31, 2012, and (iv) if dilutive, performance based awards
based on the number of shares that would be issuable as of the end of the reporting period assuming the end of
the reporting period was also the end of the contingency period.
For the year ended December 31, 2011, we computed diluted earnings per share using (i) the number of
shares of common stock and Class B common stock outstanding immediately following the Spin-Off, (ii) the
weighted average of any additional shares issued and outstanding shares outstanding following the Spin-Off date
through December 31, 2011, and (iii) if dilutive, the incremental weighted average common stock that we would
issue upon the assumed exercise of common equivalent shares related to stock options, stock warrants and the
vesting of restricted stock units using the treasury stock method during the year ended December 31, 2011, and
(iv) if dilutive, performance based awards based on the number of shares that would be issuable as of the end of
the reporting period assuming the end of the reporting period was also the end of the contingency period. We
treated all outstanding equity awards assumed at Spin-Off as if they were granted as of the Spin-Off and we
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