TripAdvisor 2014 Annual Report Download - page 90

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80
One tranche of warrants (issued in respect of Expedia warrants that had featured an exercise price of $12.23 per warrant prior to
adjustment) were exercisable for 0.25 (one-quarter) of a share of TripAdvisor common stock at an exercise price equal to $6.48 per
warrant, and the other tranche of warrants (issued in respect of Expedia warrants that had featured an exercise price of $14.45 per
warrant prior to adjustment) were exercisable for 0.25 (one-quarter) of a share of TripAdvisor common stock at an exercise price
equal to $7.66 per warrant. The exercise price could have been paid in cash or via “cashless exercise” as set forth in the Warrant
Agreement.
During the year ended December 31, 2012, and prior to the expiration date, there were a total of 32,186,791 warrants exercised
which resulted in a total of 7,952,456 shares of our common stock being issued during that period, which included 31,641,337
warrants for which the exercise price was paid in cash at a weighted average price of $27.11. We received total exercise proceeds of
$215 million related to these warrant exercises, which is reflected as a financing activity within the consolidated statement of cash
flows. In addition there were 545,454 cashless warrants exercised with a weighted average exercise price of $25.92 of which we did
not receive any exercise proceeds. We currently have no outstanding warrants remaining which could be convertible to shares of our
common stock.
Unrecognized Stock-Based Compensation
A summary of our remaining unrecognized compensation expense, net of estimated forfeitures, and the weighted average
remaining amortization period at December 31, 2014 related to our non-vested stock options and RSU awards is presented below (in
millions, except per year information):
Stock
Options RSUs
Unrecognized compensation expense (net of forfeitures) ........... $ 84 $ 70
Weighted average period remaining (in years) ........................... 2.7 2.9
NOTE 5: FINANCIAL INSTRUMENTS
Cash, Cash Equivalents and Marketable Securities
The following tables show our cash and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized
losses and fair value by significant investment category recorded as cash and cash equivalents or short and long-term marketable
securities as of December 31, 2014 and December 31, 2013 (in millions):
December 31, 2014
Cash and Short-Term Long-Term
Amortized Unrealized Unrealized Fair Cash Marketable Marketable
Cost Gains Losses Value Equivalents Securities Securities
Cash ............................................................. $ 447 $ — $ — $ 447 $ 447 $ — $ —
Level 1:
Money market funds .............................. 8 — — 8 8 — —
Level 2:
U.S. agency securities ............................ 38 — — 38 — 35 3
Certificates of deposit ............................ 8 — — 8 — 8 —
Commercial paper .................................. 1 — — 1 — 1 —
Corporate debt securities ....................... 92 — — 92 — 64 28
Subtotal ............................................ 139 — — 139 — 108 31
Total ............................................. $ 594 $ — $ — $ 594 $ 455 $ 108 $ 31