Expedia 2005 Annual Report Download - page 89

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Expedia, Inc.
Notes to Consolidated Financial Statements Ì (Continued)
The following table presents our basic and diluted earnings per share:
Year Ended December 31,
2005 2004 2003
(In thousands, except per share data)
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $228,730 $163,473 $111,407
Net earnings per share available to common stockholders:
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.68 $ 0.49 $ 0.33
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.65 $ 0.48 $ 0.33
Weighted average number of shares outstanding:
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 336,819 335,540 335,540
Dilutive effect of:
Options to purchase common stock ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,568
Warrants to purchase common stock ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,007 5,009 5,009
Other potentially dilutive securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,136
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 349,530 340,549 340,549
NOTE 16 Ì Commitments and Contingencies
Letters of Credit, Purchase Obligations and Guarantees
We have commitments and obligations that include purchase obligations, guarantees and letters of
credit (""LOC''), which could potentially require our payment in the event of demands by third parties or
contingent events. The following table presents these commitments and obligations as of December 31,
2005.
By Period
Less Than 1 to 3 to More Than
Total 1 Year 3 Years 5 Years 5 Years
(In thousands)
Purchase obligations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 8,595 $ 6,828 $ 1,767 $ Ì $Ì
Guarantees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 78,542 Ì 78,542 Ì Ì
Letters of creditÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53,156 52,261 772 123 Ì
$140,293 $59,089 $81,081 $123 $Ì
We have purchase obligations primarily with three national telecommunications companies related to
data transmission lines and telephones.
We have guarantees primarily related to a specific country aviation authority for the potential non-
delivery, by us, of packaged travel sold in that country. The authority also requires that a portion of the
total amount of packaged travel sold be bonded.
Our LOCs consist of standby LOCs, underwritten by a group of lenders, which we primarily issue to
certain hotel properties to secure our payment for hotel room transactions. There were no claims made
against any standby LOCs during the year ended December 31, 2005 and 2004.
Lease Commitments
We have contractual obligations in the form of operating leases for office space and related office
equipment; record the related expense on a monthly basis. Certain leases contain periodic rent escalation
adjustments and renewal options. Operating lease obligations expire at various dates with the latest
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